Corporate social responsibility, corporate risk management and real earnings management: Evidence from managerial trust

It is expected that if managers engage in CSR activities based on their confidence and opportunistic motives, they are likely to mislead shareholders about the value and financial performance of the firm. Enterprise risk management affects the quality of corporate governance, which enables stakeholders to manage risk more effectively and encourages companies to improve performance. Therefore, the purpose of this research is to investigate whether corporate social responsibility, corporate risk management and real income management: evidence of managerial trust have a significant effect or not? The statistical population of companies admitted to the Tehran Stock Exchange between 2014 and 2019 and using the information of 120 companies and the multivariable linear regression method, the hypothesis was tested. According to the results of the first hypothesis test, corporate social responsibility and corporate risk management have a direct and significant relationship. Also, the results of the second hypothesis indicate that real profit management has a significant effect on the relationship between corporate social responsibility and corporate risk management. And the results of the second hypothesis indicate that managerial trust has a significant effect on the relationship between corporate social responsibility and corporate risk management.