Corporate Social Responsibility Information Disclosure Research Articles

Analysis of the Impact of CSR Information Disclosure on Corporate Investment in the New Era

Due to the fact that some companies are overly pursuing profit maximization and thus neglecting the issue of undertaking and fulfilling Corporate Social Responsibility (CSR), the situation of investment risks due to information asymmetry has arisen. Whether corporate social responsibility information disclosure can solve the information asymmetry in the market economy, help enterprises to reduce the cost of external capital, and improve the efficiency of corporate investment is now the hot topic of concern for many economists. Regardless of the type of enterprise, the choice of investment projects depends on the investment opportunities faced. However, there will be financial market friction resulting in the actual investment volume of the enterprise deviates from the optimal investment scale, which will have a certain impact on the company''s social image. Therefore, this article analyzes the impact of corporate social responsibility information disclosure on corporate investment, hoping to enrich the existing research results on corporate investment efficiency in the field of corporate social responsibility, standardize corporate responsibility information disclosure systems, and improve investment efficiency.

Board independence and corporate social responsibility reporting: mediating role of stakeholder power

PurposeThis study aims to examine the association between board independence and corporate social responsibility (CSR) reporting and the moderating role of stakeholder power on the association between board independence and CSR reporting.Design/methodology/approachUsing a sample of 707 Bangladeshi firm-year observations, this study uses a content analysis technique to develop a 24-item of CSR reporting index. This study uses the ordinary least squares regression method to examine the relationship between board independence and CSR reporting.FindingsThe study finds that board independence does not influence CSR activities and relevant reporting in general. However, the non-influence of board independence and CSR reporting is offset by stakeholder power. Insider ownership, firm age, firm size, growth opportunities and market capitalisation have a positive influence on such reporting.Practical implicationsWhile this study suggests that stakeholders’ influence is an important factor in determining the firms’ incentives to disclose CSR information, this finding creates a new debate on the efficacy of independent directors and whether they are good monitors and are able to fulfil all the stakeholders’ expectations.Originality/valueThis study makes an important contribution to the literature on CSR practices by documenting that firms having powerful stakeholders induce the board and management to make more CSR reporting practices in the context of emerging economies.

Which Are the Main Factors Influencing Corporate Social Responsibility Information Disclosures on Universities' Websites.

Universities are now becoming more active in the field of Corporate Social Responsibility (CSR). Nevertheless, they do not appear to be granting the same degree of importance to the dissemination of these activities. This article analyses the voluntary corporate social responsibility information disclosed by leading USA universities. We created several indexes of corporate social responsibility information disclosure and examined main universities’ characteristics that affect corporate social responsibility disclosure by these entities. The findings obtained show that the universities are strongly committed to the dissemination of corporate social responsibility information, and that a university’s size, affiliation, public/private status and ranking position are the factors most significantly affecting its online disclosure of general corporate social responsibility information. These findings could be useful for university administrators, especially those in public universities, highlighting the importance of developing and supporting policies and incentives to promote CSR disclosure and thus attract new students and meet social expectations about the ethical behaviour of universities.

The relationship between poor CSR performance and hard, negative CSR information disclosures

PurposeThe purpose of this paper is to investigate the relationship between hard, negative corporate social responsibility (CSR) information disclosure and corporate social performance.Design/methodology/approachThis study uses a generalised least squares panel data analysis based on a sample of firms ranked in the Fortune Global 500 for the period 2013–2016. Robustness check tests were conducted to limit endogeneity concerns.FindingsThe results show that in line with strategic legitimacy theory, agency theory and organisational stigma theory, poor sustainability performers disclose a low quality of hard, negative CSR information.Practical implicationsThis paper provides guidance for stakeholders to identify good and poor CSR performers by better understanding whether corporate CSR reports are more likely to be symbolic or substantive when considering the amount of hard, negative content in their CSR stand-alone reports.Social implicationsThe research highlights the opportunistic behaviour of CSR reporting, which is used more as a legitimation device than as an accountability mechanism. ThiOriginality/valueAlthough numerous studies have investigated the association between the level of corporate social disclosure (CSD) and corporate social performance, no research has focussed on hard, negative CSD. Also, an index that captures the disclosure quality rather than the quantity of negative CSR information was constructed.

Corporate Social Responsibility in Supply Chain: Green or Greenwashing?

Perception regarding a focal firm's corporate social responsibility (CSR) depends not only on itself but also on its known suppliers. This paper provides the first empirical evidence linking CSR and supply chain information disclosure together. We uncover robust evidence that listed firms voluntarily disclose environmentally responsible suppliers while selectively not disclosing ”bad ones, effectively greenwashing their supply chain image. This selective disclosure of green suppliers is prevalent among listed firms across the world. Such corporate behavior is increasing in public awareness of climate change, decreasing in regulations on CSR information transparency. It is more salient for firms who face higher competition or care more about their brand awareness, and for firms that are more profit-driven or held more by institutional investors. Firms that greenwash supply chains observe an increase in sales and valuation, suggesting that consumers and investors do not fully take greenwashing of listed firms into account.

CEO power and corporate social responsibility (CSR) disclosure: does stakeholder influence matter?

PurposeThis study examines the association between Chief Executive Officer (CEO) power and the level of corporate social responsibility (CSR) disclosure, as well as the moderating role of stakeholder influence on this association.Design/methodology/approachUsing a sample of 986 Bangladeshi firm-year observations, this study uses a content analysis technique to develop a 24-item CSR disclosure index. The ordinary least squares regression method is used to estimate the research models, controlling for firm-specific factors that potentially affect the levels of CSR disclosure.FindingsThe study findings indicate that CEO power is negatively associated with the level of CSR disclosure, and that the negative effects of CEO power on the level of CSR disclosure are attenuated by stakeholder influence. CEO power is documented as reducing the positive impact of CSR disclosure on a firm’s financial performance, with this negative impact attenuated if stakeholders have greater influence on the firm.Practical implicationsThis study suggests that CEO power and stakeholder influence are important factors in determining firms’ incentives to disclose CSR information. Both CEO power and stakeholder influence need to be considered in the CSR – firm performance nexus, given the mixed findings documented in the literature.Originality/valueThis study makes a significant contribution to the literature on CSR practices by documenting that firms with a powerful CEO have lower levels of CSR disclosure, and that stakeholder influence affects CSR disclosure in the emerging economy context.

Corporate social responsibility, market reaction and accounting conservatism

PurposeNon-financial information disclosure may reflect the quality of corporate financial reports or disclosure policy choices. The authors examine the relationship between corporate social responsibility (CSR) and accounting conservatism and also investigate channels through which such effects are transmitted. The purpose of this paper is to explore how CSR, as non-financial information that has received widespread attention, affects choices regarding corporate financial policy.Design/methodology/approachUsing ordinary least squares regression, the authors analyze China CSR Score data for 2010–2018. They control certain influencing variables related to the nature and characteristics of enterprises and discover that CSR can effectively increase accounting conservatism. Then, they extract the components of market reactions to CSR and study the market reaction path of CSR as it affects financial policy. They also conduct a robustness test to ensure that the results are not accidental in a complex environment.FindingsThe results reveal the influence of non-financial information on firms’ financial policy. In addition, the results confirm the attraction of liquidity and investor attention as the major market reaction channels by which CSR significantly promotes accounting conservatism. Additionally, other critical paths of influence deserve further exploration. The results remain robust for alternate measures of accounting conservatism, different components of CSR, other proxies on CSR, endogenous testing and alternate estimation methods.Originality/valueThe study represents the first analysis of the influence of CSR information disclosure on accounting conservatism in emerging markets, and it undertakes a preliminary exploration to clarify the mechanism of CSRs’ role in accounting conservatism. The results also provide a policy reference for external supervision and internal governance of enterprises. Thus, the results can help company managers maintain a favorable corporate image and establish a high-level investor protection mechanism.

Corporate Social Responsibility Practices and Financial Performance of Listed Firms in Nigeria: Evidence from Park's Feasible Generalized Least Square Approach

The health of a firm in a highly viable business environment depends on its ability to achieve profit and maintain financial accuracy. Firms are subject to enormous forces exercised from other stakeholders apart from the shareholders directly involved with firm management and capital provider. Studies have shown the difficulties faced by firms that try to strike a balance between these two dimensions: economic (Return on Assets) and non-economic (social causes and maintenance of equitable balance) to improve financial performance. Moreover, the components of these dimensions are not well delineated in literature when examining the effect of Corporate Social Responsibility (CSR) on financial performance. Hence, this study examined the impact of CSR and financial performance of listed firms in Nigeria. The study adopted ex-post facto. The population consisted of 168 firms listed on the Nigerian Stock Exchange as at 31st December 2018. Validated secondary data sourced through the published annual reports of 52 firms, purposively selected for those firms that disclose CSR information in their audited financial statements as a single report; for a period of 11 years (2008 to 2018), giving 572 firm-year observations. The reliability of the data premised on external auditors' certification. Findings revealed that Social Causes (SOCA) had a significant and positive effect on Return on Assets (ROA) (R 2 = 0.41, β = 0.116, t(570) = 2.544, p < 0.05) and Maintaining Equitable Balance (MEB) with the stakeholders exerted a significant and positive effect on ROA of listed firms in Nigeria (R 2 = 0.57, β = 0.693, t(570) = 63.127, p < 0.05). The study concluded that corporate social responsibility has significant positive impacts on the financial performance of firms in Nigeria. It is recommended that the practice of corporate social responsibility should be intensified by corporate firms to improve their performance.

Islamic social reporting disclosure as a form of social responsibility of Islamic banks in Indonesia

Sharia-compliant companies had to add Islamic Social Reporting when disclosing Corporate Social Responsibility information due to its characteristics. Sharia-compliant companies in Indonesia still do not do this much, and it is very interesting to study, because every sharia-based entity must comply with sharia provisions in all aspects of its activities, including when compiling social reporting. The purpose of this study is to analyze the influence of profitability, liquidity, leverage, and an Islamic Governance Score on Islamic Social Reporting in Islamic commercial banks in Indonesia. The sampling is carried out using a purposive sampling technique for up to 10 Islamic commercial banks with a six-year observation period, so there are 60 units of analysis. The data are collected using a documentation technique. The analysis in the study uses panel data regression. Based on a Random Effect Model, the study showed that profitability and leverage do not affect Islamic Social Reporting, while liquidity and the Islamic Governance Score had an impact on the Islamic Social Reporting.

Does Firms' Dissemination of Corporate Social Responsibility Information through Facebook Matter for Corporate Reputation?

ABSTRACTThis paper examines the impact of firms' dissemination of corporate social responsibility (CSR) information through Facebook on corporate reputation. We investigate this relationship empirically by using a corporate reputation index that tracks nonprofessional stakeholders' daily perceptions of corporate reputation over time. We find that firms disclosing CSR information on Facebook experience a decrease in reputation. If we differentiate Facebook postings based on whether their content provides environmental or social information, we only find a negative effect on reputation for firms posting social information (quality effect). However, reputation is not affected by the number of CSR postings (quantity effect).Data Availability: Data are available from the commercial databases and public sources identified in the paper.

Quantity, Quality, and Performance of Corporate Social Responsibility Information Disclosure by Listed Enterprises in China: A Regional Perspective.

The purpose of this article is to promote an increase in the number of enterprises that will disclose corporate social responsibility (CSR) information, and to improve on their quality of CSR information disclosure. Using the theory of organizational ecology, we propose that the density of companies that disclose CSR information in a region has an impact on both the quality and the performance of CSR disclosures. The study results suggest that an increase in the density of CSR information disclosing enterprises in a region will increase the number of enterprises with disclosure intentions. A density increase has a nonlinear influence on the quality of CSR information disclosure and on corporate performance, where the influence of disclosing enterprises’ density on corporate performance is partly mediated by the quality of CSR information disclosure. Our research also shows that the impact of density change of disclosing enterprises on the quality of CSR information disclosure is mediated by corporate capital structure.

Board diversity, company’s financial performance and corporate social responsibility information disclosure in Malaysia

The aim of this study is to investigate the relationship between board diversity, financial performance and disclosure of corporate social responsibility (CSR) information of the Malaysian listed companies. Different from prior literature, board diversity is viewed from the perspective of gender, age, tenure, educational level, professional membership and functional background. We used one explanation i.e. diversity as variety, out of three explanations from a typology in social psychological and organizational management fields. The sample consists of 205 companies listed on Bursa Malaysia. Using regression analysis, a significant positive relationship was noted between the functional backgrounds of directors and the companies’ financial performance. The result shows that boards should have diversity in their functional background. The other forms of board diversity such as gender, age, tenure, educational level and professional membership have been found not to influence companies’ financial performance. Board professional membership diversity was found to significantly increase the CSR information disclosure. However, other forms of board diversity were found not to influence the CSR information disclosure. These findings may suggest that corporate boards should have diversity in their functional background and professional membership in order to enhance companies’ financial performance and CSR information disclosure.

Financial Reporting Conservatism and Voluntary CSR Disclosure

This paper examines whether a firm’s degree of conservatism in financial reporting is associated with its voluntary non-financial corporate social responsibility (CSR) disclosures and the stock price reaction to such disclosures. Theoretical and empirical studies find that the amount of voluntary disclosures and their credibility vary depending on the degree of financial reporting conservatism. We expand this line of questioning and find that firms that adopt conservative financial reporting are less likely to disclose CSR information. Further analyses show that the market reaction to a firm’s CSR disclosure is reduced when its financial reporting is more conservative. Our evidence suggests that the quantity and quality of CSR disclosures are associated with the degree of accounting conservatism. Therefore, stakeholders should consider a firm’s financial reporting policies when interpreting CSR disclosures.

Institutional Ownership and Value Relevance of Corporate Social Responsibility Disclosure: Empirical Evidence from China

We examine the relationship between corporate social responsibility (CSR) disclosure and firm value in China. Using a sample of listed companies on the Shanghai Stock Exchange from 2008 to 2012, we find that market value of a firm is higher when a company makes a lower level of CSR disclosure. Other things being equal, this relationship becomes positive when the CSR disclosure is moderated with the institutional ownership. With regard to the CSR disclosure, we found consistent results with respect to the little evidence that the amount of CSR disclosure is significantly associated with market value among those companies who chose to provide CSR disclosures. Taken together, these results indicate that the decision to disclose or not to disclose CSR information is value relevant to the level of institutional investors. These findings are important as they have made an attempt to resolve the earlier contradictory findings with respect to the relationship between market value and CSR disclosure. Furthermore, it has highlighted the value relevance of CSR disclosure regarding the type of shareholders/institutional investors.

Financial Reporting Conservatism and Voluntary CSR Disclosure

SYNOPSIS This paper examines whether a firm's degree of conservatism in financial reporting is associated with its voluntary nonfinancial corporate social responsibility (CSR) disclosures and the stock price reaction to such disclosures. Theoretical and empirical studies find that the amount of voluntary disclosures and their credibility vary depending on the degree of financial reporting conservatism. We expand this line of questioning and find that firms that adopt conservative financial reporting are less likely to disclose CSR information. Further analyses show that the market reaction to a firm's CSR disclosure is reduced when its financial reporting is more conservative. Our evidence suggests that the quantity and quality of CSR disclosures are associated with the degree of accounting conservatism. Therefore, stakeholders should consider a firm's financial reporting policies when interpreting CSR disclosures. JEL Classifications: M40; M41. Data Availability: The data used in this study were taken from public sources identified in the paper.

Corporate Governance and Disclosure of Information on Corporate Social Responsibility: An Analysis of the Top 200 Universities in the Shanghai Ranking

Corporate Social Responsibility (CSR) and its disclosure in the university environment is a topic of current relevance, as it makes the entities’ commitments visible and provides indicators that enable them to improve the institution management and communication with stakeholders. The goal of this study is to determine to what extent the structure and mechanisms for governance and the demands of stakeholders influence policy for disclosing CSR information, both in general (more related to a strategic perspective) and specifically (more focused on specific social, environmental, economic, and educational issues). The results of our analysis of a sample of the top 200 universities in the Shanghai Ranking show no association of the profile and gender of the university’s rector and frequency of board meetings with CSR disclosure policy, but leadership team, the size of governance board, committees in the governance board and stakeholder participation are factors determining disclosure of information on matters of CSR. The results show that proximity to the day-to-day, diversification of functions, and communication with interest groups are crucial to transparency and disclosure of CSR information.

“Sell” recommendations by analysts in response to business communication strategies concerning the Sustainable Development Goals and the SDG compass

This paper has two main aims: firstly, to examine the effect of pessimistic (sell) recommendations made by analysts to investors on the implementation of business communication strategies in accordance with the Sustainable Development Goals (SDGs), through the adoption of the SDG Compass. Secondly, it considers the possible corrective effect produced by these strategies on analysts’ recommendations, i.e. modifying their perception of corporate social responsibility (CSR) as an agency cost. Based on a sample of 989 international companies which disclose CSR information, obtained by merging the Global Reporting Initiative (GRI) and Thomson Reuters databases, our analysis of the results obtained shows that the companies receiving most sell recommendations were among the first to adopt the SDG Compass in a given year or in the year immediately following it. Nevertheless, this effect is limited, because the long-term implementation of CSR strategies has a relatively trivial impact on analysts’ recommendations, since there is little likelihood of change in these strategies.

Corporate Social Responsibility Information Disclosure and Innovation Sustainability: Evidence from China

We selected the Chinese A-share listed companies during period of 2007 to 2017 as the research subject, and from the perspective of information and reputation effects, we examined the relationship between corporate social responsibility (CSR) information disclosure and innovation sustainability. The results show that CSR information disclosure has a significant positive relationship with innovation sustainability. Analysis of the effects channel suggests that the information effect plays a dominant role; CSR information disclosure can alleviate the information asymmetry between managers and investors, controlling shareholders and minority shareholders, and alleviate the financing constraint problems, thereby improving innovation sustainability. Our findings support the information hypothesis but not the reputation hypothesis. The relationship between CSR information disclosure and innovation sustainability is more significant in non-state-owned companies. The moderating effect shows that managerial stock incentives can strengthen the positive relationship between CSR information disclosure and innovation sustainability. A series of robustness test results show that the conclusions are reliable. The research is important for promoting the fulfillment of CSR, improving corporate innovation, and promoting the healthy development of the capital market.

CEO Power and Corporate Social Responsibility (CSR) Disclosure: Does Stakeholder Influence Matter?

Purpose – This study examines the association between Chief Executive Officer (CEO) power and the level of corporate social responsibility (CSR) disclosure, as well as the moderating role of stakeholder influence on this association. Design/methodology/approach – Using a sample of 986 Bangladeshi firm-year observations, this study employs a content analysis technique to develop a 24-item CSR Disclosure Index. The ordinary least squares (OLS) regression method is used to estimate the research models, controlling for firm-specific factors that potentially affect the levels of CSR disclosure. Findings – The study findings indicate that CEO power is negatively associated with the level of CSR disclosure, and that the negative effects of CEO power on the level of CSR disclosure are attenuated by stakeholder influence. CEO power is documented as reducing the positive impact of CSR disclosure on a firm’s financial performance, with this negative impact attenuated if stakeholders have greater influence on the firm. Practical implications – This study suggests that CEO power and stakeholder influence are important factors in determining firms’ incentives to disclose CSR information. Both CEO power and stakeholder influence need to be considered in the CSR–firm performance nexus, given the mixed findings documented in the literature. Originality/value – This study makes a significant contribution to the literature on CSR practices by documenting that firms with a powerful CEO have lower levels of CSR disclosure, and that stakeholder influence affects CSR disclosure in the emerging economy context.

Ownership types, corporate governance and corporate social responsibility disclosures

PurposeThis study aims to examine the extent to which corporate governance structures and ownership types are associated with the level of corporate social responsibility disclosures (CSRD) in a developing country.Design/methodology/approachMultiple regression techniques are used to estimate the effect of corporate governance structures and ownership types on CSRD using a sample of Libyan oil and gas companies between 2009 and 2013.FindingsFirst, the study results suggest that although the level of CSRD in Libya is low in comparison to its western counterparts, ownership factors have a significant positive influence on CSRD. Second, the authors find board meetings to have a positive impact on CSRD. However, the authors fail to find any significant effect of board size and presence of corporate social responsibility (CSR) committees on CSRD. Overall, the results support prior theoretical evidence that pressures exerted by the government and external stakeholders have a considerable influence in promoting firm-level CSRD activities, specifically as a legitimising mechanism in fragile states.Research limitations/implicationsFirst, this study is based on the annual reports, and it did not examine any other reports or other mass communication mechanism that companies’ management may use to disclose CSR information. Future studies might consider disclosures in other channels, if any, such as the internet, CSR reports, etc. Additionally, this study adopts the neo-institutional theory perspective. Future studies might integrate multi-theoretical lenses to offer a richer basis for understanding and explaining CSRD determinants.Originality/valueThis study contributes to the literature by first providing additional evidence for existing studies, which suggest that on average, better-governed companies are more liable to follow a more socially responsible agenda than poorly governed companies as a legitimising mechanism in fragile states. Also, this study overcomes a major weakness in existing Libyan studies, which have mainly used descriptive data.