Effect of the net zero target commitment on accrual-based earnings management
| Variables | DISACC | DISACC |
|---|---|---|
| COUNTRY_NETZERO | FIRM_NETZERO | |
| CONSTANT | 0.266*** (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_RATE | 0.001*** (7.50) | 0.000 (0.12) |
| CO2_PER_CAPITA | 0.000 (0.67) | 0.000 (0.20) |
| CORRUPT_CONTROL | 0.009*** (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_QUAL | 0.008*** (2.95) | 0.004 (0.41) |
| RULE_LAW | 0.020*** (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) |
| ROA | 0.232*** (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&D | 0.021*** (3.54) | −0.028 (−0.61) |
| SGA | 0.004*** (12.45) | 0.002 (0.42) |
| CAPEX | −0.024*** (−6.88) | −0.040 (−1.40) |
| COVID19 | 0.009*** (4.89) | −0.005 (−1.01) |
| Industry fixed effect | Yes | Yes |
| Country fixed effect | Yes | Yes |
| Year fixed effect | Yes | Yes |
| N | 249,711 | 5,241 |
| Adjusted R-squared | 0.162 | 0.175 |
| Variables | ||
|---|---|---|
| 0.266 | 0.279 | |
| −0.006 | ||
| −0.005 (−0.87) | ||
| −0.000 (−0.58) | −0.000 (−0.99) | |
| −0.020 | −0.035 | |
| 0.001 | 0.000 (0.12) | |
| 0.000 (0.67) | 0.000 (0.20) | |
| 0.009 | −0.011 (−1.19) | |
| −0.011 | −0.005 (−0.61) | |
| −0.003 | 0.008 (1.37) | |
| 0.008 | 0.004 (0.41) | |
| 0.020 | 0.011 (0.84) | |
| −0.009 | −0.018 (−1.08) | |
| −0.040 | −0.027 (−0.49) | |
| −0.005 | −0.000 (−0.08) | |
| −0.002 | −0.006 | |
| 0.232 | 0.144 | |
| −0.034 | −0.079 | |
| −0.030 | −0.044 | |
| −0.086 | −0.072 | |
| −0.000 (−0.13) | 0.005 | |
| 0.021 | −0.028 (−0.61) | |
| 0.004 | 0.002 (0.42) | |
| −0.024 | −0.040 (−1.40) | |
| 0.009 | −0.005 (−1.01) | |
| Industry fixed effect | ||
| Country fixed effect | ||
| Year fixed effect | ||
| 249,711 | 5,241 | |
| Adjusted | 0.162 | 0.175 |
*, ** and *** denote significant level at the 0.1, 0.05 and 0.01 levels, respectively, using two-tailed p-value
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