Corporate social responsibility and accounting conservatism: empirical evidence from French companies

Purpose This study aims to investigate the effect of corporate social responsibility (CSR) on accounting conservatism in French environmental, social and governance (ESG) firms. Design/methodology/approach The authors applied multivariate regression analysis on panel data to a sample of 43 nonfinancial companies from France listed on the ESG index over the 2010–2023 period. The data were extracted from the Thomson Reuters Eikon ASSET4 database. Findings Empirical evidence demonstrates that CSR has a negative influence on accounting conservatism. Regarding the control variables, the results reveal that firm size, profitability, board size and board gender diversity significantly influence the accounting conservatism level in financial reporting. Nevertheless, firms’ leverage and board independence are insignificantly correlated with accounting conservatism. Originality/value This study extends the existing literature by providing further evidence about the role of CSR in conservative accounting practices while addressing the information gap for a developed economy, namely, France. It has important implications for academic researchers, managers and policymakers.