Izadi, Javad ORCID: https://orcid.org/0000-0001-5607-5077 and Palazzo, Maria (2021) The market reaction to unexpected earnings via discretionary accruals and sustainability reporting. In: Contemporary Issues in Sustainable Branding: Ethical, Social, and Environmental Perspectives. Routledge, Taylor and Francis Group Publishing Limited. ISBN 09780367855703

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Abstract

We investigate the impact of earnings management on the sustainability reporting and branding position among the listed companies in the UK. We pay particular attention to the roles of discretionary accruals and find that they are negatively related to future stock returns.

Key points
This study builds on this prior work regarding the contribution of accruals to explaining future returns
To understand the association between returns and earnings in accounting.
Attempts to investigate the relationship by linking earnings management in annual financial and sustainability reporting
A considerable body of research is concerned with the relation between accounting stock returns and earnings.
To find positive or negative earnings management can create positive or negative returns.
Managers may try to manage their earnings by using discretionary accruals.
To show the ability of accruals for both actual and simulated earnings management.

Item Type:	Book Chapter or Section
Identifier:	10.4324/9780367855703
Additional Information:	This is an Accepted Manuscript of a book chapter published by Routledge/CRC Press in Sustainable Branding on 2021, available online: https://doi.org/10.4324/9780367855703
Subjects:	Business and finance > Accounting and finance > Market based accounting research
Date Deposited:	14 Jul 2020
Dates:	Date Publication status 30 May 2020 Accepted 28 January 2021 Published Online
School, department or research centre:	Claude Littner Business School
URI:	https://repository.uwl.ac.uk/id/eprint/7094

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