Cross-sectional analysis.

This table of Panel A displays the results of regression estimations of the relationship between earnings management and the readability of Chinese CSR reports, dividing the sample into irregular and nonirregular firms. The irregularities indicator variable equals 1 if companies have irregularities; otherwise, it is 0. Panel B displays the results of regression estimations of the relationship between earnings management and the readability of Chinese CSR reports, dividing the sample into a high internal control index and a low internal control index. We choose the internal control index of the DIB database. When the value is greater than the median of all the samples, the value is 1; otherwise, it is 0. Panel C displays the results of regression estimations of the relationship between earnings management and the readability of Chinese CSR reports, dividing the sample into ISO14001 and non-ISO14001 firms. The value is 1 when the company has passed the ISO14001 certification; otherwise, it is 0. Panel D displays the results of regression estimations of the relationship between earnings management and the readability of Chinese CSR reports, dividing the sample into attestation and non- attestation. If companies have independent third-party authentication for CSR reports, the value is 1; otherwise, it is 0. The dependent variable is Readability_CSR measured as the readability of Chinese CSR reports. The post indicator variable is DA, measured as accrued earnings management. All the controlling variables are obtained from the CSMAR database, and t-statistics are reported in parentheses.