이익조정 행위와 지속가능성 보고서의 품질

[Purpose] This study investigates the effect of earnings management on the quality of ESG disclosures and examines whether board characteristics moderate this relationship. Unlike prior studies that emphasize the role of ESG disclosures in enhancing financial reporting quality, this research explores the possibility that earnings management undermines the credibility and substance of ESG disclosures, thereby transforming them into strategic tools rather than genuine communication instruments. [Methodology] Using a sample of non-financial firms listed on the Korea Exchange between 2016 and 2022, we measure ESG disclosure quality based on third-party evaluation scores of sustainability reports. Earnings management is proxied by discretionary accruals (EM-DA) and real earnings management (EM-REM). Board characteristics are measured by the proportion of outside directors and female directors. [Findings] The empirical results show that higher levels of earnings management are significantly associated with lower ESG disclosure quality. This negative association implies that firms engaging in earnings management tend to impair the credibility of ESG disclosures. Furthermore, board independence effectively moderates this negative relationship, while board gender diversity does not exhibit a statistically significant moderating effect. [Implications] These results highlight that ESG disclosures may serve as strategic instruments rather than genuine communication tools for transparent reporting. The study emphasizes the need to strengthen qualitative standards for ESG disclosure and underlines the importance of board independence in ensuring reporting integrity. By reversing the conventional direction of analysis, this research contributes new insight into the interrelationship between earnings management, corporate governance, and sustainability reporting quality.