Is corporate social responsibility an entrenchment strategy? Evidence in stakeholder protection environments

摘要

By using international data, we analyze the effect of managerial discretion on socially responsible practices with the aim of demonstrating the use of corporate social responsibility (CSR) as an entrenchment strategy in order to conceal unethical behavior. The results confirm the positive relationship between . managerial discretion and CSR. Therefore, by employing CSR, a company's managers that employ poor accounting practices attempt to compensate stakeholders. We also demonstrate that institutional factors influence the above relationship. Concretely, the entrenchment strategy is moderated by the stakeholder protection in the country of origin and CSR dimension analyzed.