The purpose of this study is to investigate the impact of Corporate Social Responsibility (CSR) on earnings quality and share price. There is a scarcity of studies examining these relations in Egypt. Furthermore, prior studies have shown mixed results about this relation. The study is carried out an empirical analysis based on data from 2010-2016 using linear regression models between CSR, four proxies of earnings quality (Discretionary Accruals, Earnings Persistence, Earnings Predictability and Income Smoothing) and share price. The results shows that corporations with higher commitment to CSR have high level of earnings quality and they are less likely to manage earnings, furthermore, CSR has no impact on share price in Egypt. Similar results are obtained when the ESG index approach is employed as an alternative measure for CSR and corporate governance as a control variable. |
