Abstract
Demand for information on corporate social responsibility (CSR) and international financial reporting standards (IFRS) has progressively increased in tandem with the growing interest in sustainable investments. Numerous studies have established that the adoption of IFRS has often improved the information quality offered to many users through providing highly relevant, reliable and understandable information, as well as allowing companies’ accounting data to be compared to that of other companies for various periods. Crash risk is a major concern for investors and may result in higher compensation for holding higher-risk securities. This research seeks to examine the impact of corporate social responsibility on the effectiveness of adopting mandatory international financial reporting standards according to the price crash risk. To achieve this, the descriptive approach and a systematic review of previous studies, research, and literature related to the research topic and its variables were used. The results confirmed the existence of a correlation between CSR and IFRS in the financial market. Finally, the research recommended the necessity of conducting more research, analytical and empirical studies with regard to measuring the correlation among CSR and IFRS.
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More From: International Journal of Accounting and Management Sciences
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