Communication about Environmental Information: What Drives the Effect on Income Smoothing as Proxy of Earnings Quality?
Ben Mahjoub Lassaad*
Faculty of Economic Sciences and Management, University of Sfax, Tunisia
- *Corresponding Author:
- Ben Mahjoub Lassaad
Assistant at High Insitute of Commercial Studies
E-mail: [email protected]
Received Date: December 11, 2012; Accepted Date: December 13, 2012; Published Date: January 08, 2013
Citation: Lassaad BM (2013) Communication about Environmental Information: What Drives the Effect on Income Smoothing as Proxy of Earnings Quality? J Account Mark 2:102.doi:10.4172/2168-9601.1000102
Copyright: © 2013 Lassaad BM. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
The purpose of this paper is to examine the association between corporate environmental reporting and income smoothing made by companies listed in Paris Stock Exchange. We use earnings smoothness as proxy of earnings quality desirable by investors and we measure environmental reporting by index score using content analysis method, the index was composed by items from French law of New Economic Regulation, the global compact, Global Reporting Initiative and new Acts on environmental protection. Our results show a positive relationship between the two variables; firms with high level of environmental reporting are less incited to smooth earnings.