Corporate Governance and Corporate Social Responsibility Disclosure: Evidence from China

Abstract

Extant research on corporate governance documents the effects of a firm’s disclosure policy (Chen & Jaggi, 2000; Craswell & Taylor 1992; Eng & Mak, 2003; Forker, 1992; Ho & Shun, 2001; Hossain, Tan, & Adams, 1994; Malone, Fries, & Jones, 1993; McKinnon & Dalimunthe, 1993; Mitchell, Chia, & Loh, 1995; Raffournier, 1995; Williamson, 1985). However most of the studies concentrate on financial information disclosure policy For example, Forker (1992) examines the association between corporate governance and share option disclosure. Chen and Jaggi (2000) examine the association between independent nonexecutive directors and comprehensiveness of information in mandatory financial disclosures. Few studies examine the association between corporate governance and a firm’s disclosure policy on nonfinancial information. Since corporate disclosure includes both financial information and nonfinancial information, given the importance of non-financial information as an integrated part of a firm’s disclosure, this study examines the association between corporate governance and corporate social responsibility (CSR) disclosure quality, using Chinese public firms’ CSR disclosure data between 2009 and 2011 as our main sample.