Table 9.

Effect of the net zero target commitment on accrual-based earnings management

VariablesDISACCDISACC
COUNTRY_NETZEROFIRM_NETZERO
CONSTANT0.266*** (14.76)0.279*** (4.00)
COUNTRY_NETZERO−0.006*** (−5.25)
FIRM_NETZERO−0.005 (−0.87)
CLIMATE_RISK−0.000 (−0.58)−0.000 (−0.99)
GDP_PER_CAPITA−0.020*** (−8.61)−0.035*** (−3.45)
GDP_GROWTH_RATE0.001*** (7.50)0.000 (0.12)
CO2_PER_CAPITA0.000 (0.67)0.000 (0.20)
CORRUPT_CONTROL0.009*** (3.72)−0.011 (−1.19)
GOV_EFFECT−0.011*** (−5.08)−0.005 (−0.61)
POL_STABILITY−0.003** (−2.05)0.008 (1.37)
REGULATE_QUAL0.008*** (2.95)0.004 (0.41)
RULE_LAW0.020*** (6.97)0.011 (0.84)
VOICE_ACCOUNT−0.009*** (−3.17)−0.018 (−1.08)
CTR−0.040*** (−3.12)−0.027 (−0.49)
SIZE−0.005*** (−27.05)−0.000 (−0.08)
LEV−0.002*** (−4.06)−0.006** (−2.08)
ROA0.232*** (73.41)0.144*** (5.08)
CASH−0.034*** (−14.61)−0.079*** (−4.63)
PPE−0.030*** (−32.60)−0.044*** (−6.47)
INTANG−0.086*** (−34.24)−0.072*** (−5.12)
FOREIGN−0.000 (−0.13)0.005** (1.98)
R&D0.021*** (3.54)−0.028 (−0.61)
SGA0.004*** (12.45)0.002 (0.42)
CAPEX−0.024*** (−6.88)−0.040 (−1.40)
COVID190.009*** (4.89)−0.005 (−1.01)
Industry fixed effectYesYes
Country fixed effectYesYes
Year fixed effectYesYes
N249,7115,241
Adjusted R-squared0.1620.175
Note(s):

*, ** and *** denote significant level at the 0.1, 0.05 and 0.01 levels, respectively, using two-tailed p-value

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