When sustainability speaks louder: the role of ESG in mitigating the impact of manager personality traits on earnings management in credit cooperatives
Purpose: To analyze the moderating effect of ESG practices on the relationship between manager personality traits and earnings management practices in credit cooperatives. Methodology: The study involved 83 credit cooperative managers with data collected through an online survey. Descriptive sta...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | Portuguese |
| Published: |
Universidade Federal do Rio Grande do Norte
2025-07-01
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| Series: | Revista Ambiente Contábil |
| Subjects: | |
| Online Access: | https://www.periodicos.ufrn.br/ambiente/article/view/40770 |
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| Summary: | Purpose: To analyze the moderating effect of ESG practices on the relationship between manager personality traits and earnings management practices in credit cooperatives.
Methodology: The study involved 83 credit cooperative managers with data collected through an online survey. Descriptive statistics and multiple linear regression techniques were applied for analysis using Stata® software.
Results: The findings indicate that manager personality traits significantly influence the adoption of earnings management practices. However, the implementation of ESG practices demonstrated a positive moderating effect, discouraging managers with Dark Triad traits (Machiavellianism, narcissism, and psychopathy) from engaging in opportunistic behaviors.
Contributions of the Study: This study contributes to the literature by integrating behavioral and organizational aspects, highlighting how psychological traits influence opportunistic practices and how ESG practices can mitigate these effects. From a practical perspective, the results suggest that credit cooperatives can reduce manipulative practices by adopting robust ESG policies. Additionally, incorporating personality trait analysis into the recruitment and selection process can help identify candidates aligned with organizational values and less prone to earnings manipulation. This can enhance transparency, strengthen corporate governance, and build stakeholder trust.
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| ISSN: | 2176-9036 |