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cc by-nc-nd (c) Cai, 2025
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/227060

Does Earnings Management Drive ESG? An Empirical Study in the European Pharma Sector

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Purpose This study examines whether corporate earnings management is associated with ESG performance levels and whether this relationship underwent structural changes during COVID-19. Using a balanced panel of 50 European pharmaceutical companies from 2019-2023, constructed from Refinitiv and Orbis databases, we examine earnings management's impact on ESG performance across environmental, social, and governance dimensions. We employ fixed-effects regression models with COVID-19 time dummies to capture strategic disclosure behavior changes under macroeconomic shocks. Findings Results show earnings management does not significantly affect overall ESG scores or individual dimensions, with no significant moderating effects pre- and post-pandemic. However, governance scores exhibit consistent negative correlation with earnings management, suggesting this dimension may better reflect financial motivations underlying actual governance structures. Originality This study's originality lies in its focus on European pharmaceuticals, its special "EM-drives-ESG" analytical approach, and its novel insights into non-financial disclosure motivations during pandemic conditions.

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Treballs Finals del Màster de Recerca en Empresa, Facultat d'Economia i Empresa, Universitat de Barcelona. Curs: 2024-2025, Tutor: Antonio Somoza

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CAI, Yunqiong. Does Earnings Management Drive ESG? An Empirical Study in the European Pharma Sector. [consulta: 27 de febrer de 2026]. [Disponible a: https://hdl.handle.net/2445/227060]

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