Discretionary Choices Research Articles

Blockchain in accounting practice and research: systematic literature review

Purpose This study aims to review the academic literature on the utilization of blockchain in accounting practice and research to identify potential opportunities for further scientific investigation and to provide a framework for how accounting practices are impacted by blockchain. Design/methodology/approach This study is based on a systematic literature review (SLR) of 346 research products available on Scopus, which were mapped with bibliometric analyses and critically discussed in relation to three main topics: the impact of blockchain on accounting and auditing, cryptoassets and finance, business models and supply chain management. Findings Blockchain has many potential implications for accounting practice and research. In addition to providing the state-of-the-art of accounting research on blockchain and additional avenues for further studies, this study discusses why practitioners are interested in this technology: triple-entry bookkeeping, the inalterability of transactions, the automation of repetitive tasks that do not require discretionary choices, the representation of cryptocurrencies in financial statements, value-chain management, social and environmental auditing and reporting and business model innovation. Originality/value The novel contribution of this study is integrated and threefold. First, this SLR provides a clear picture of the state of the accounting research on blockchain using bibliographic and narrative analyses. Second, it investigates how accounting and auditing practices are impacted by blockchain. Third, it contributes to the accounting literature with its discussion of the potential future research trends related to blockchain for accounting.

Inheritances and wealth inequality: a machine learning approach

This paper explores the relationship between received inheritances and the distribution of wealth (financial, non-financial and total) in four developed countries: the United States, Canada, Italy and Spain. We follow the inequality of opportunity (IOp) literature and − considering inheritances as the only circumstance− we show that traditional IOp approaches can lead to non-robust and arbitrary measures of IOp depending on discretionary cut-off choices of a continuous circumstance such as inheritances. To overcome this limitation, we apply Machine Learning methods (‘random forest’ algorithm) to optimize the choice of cut-offs and we find that IOp explains over 60% of wealth inequality in the US and Spain (using the Gini coefficient), and more than 40% in Italy and Canada. Including parental education as an additional circumstance −available for the US and Italy− we find that inheritances are still the main contributor. Finally, using the S-Gini index with different parameters to weight different parts of the distribution, we find that the effect of inheritances is more prominent at the middle of the wealth distribution, while parental education is more important for the asset-poor.

Discretionary Effort on Green Technology Innovation: How Chinese Enterprises Act when Facing Financing Constraints.

Firm’s effort on Green technology innovation (hereafter, called G-innovation) is affected by financing constraints, and firm will make a discretionary choice according to its own situation, to achieve the maximization of self-interests. Based on the data of Chinese micro enterprises, firstly, we empirically analyze firms’ decision-making towards G-innovation when faced with financing constraints. It supports the view that financing constraints can hinder enterprise technological innovation. And we also make an explanation that the social benefits of green technology innovation are greater than personal benefits, which makes enterprises tend to reduce green technology innovation when facing financing constraints. Then we examine firms’ heterogonous behaviors under different internal attributes and external environments. The results reveal that: First, firms are reluctant to pay more efforts to G-innovation when faced with increased financing constraints. Second, firms with different attributes exhibit heterogeneous G-innovation. Political connections will change firms’ willingness to innovate, while the structure of property rights and the pollution degree will not. Third, firms under different external environment also exhibit heterogeneous G-innovation. When economic policy uncertainty increases, firms’ willingness to innovate weakens. The development of shadow banks fail to improve firm’s willingness to innovate.

Dietary Intake, Cost, and Affordability by Socioeconomic Group in Australia.

Few Australians consume diets consistent with the Australian Dietary Guidelines. A major problem is high intake of discretionary food and drinks (those not needed for health and high in saturated fat, added sugar, salt and/or alcohol). Low socioeconomic groups (SEGs) suffer particularly poor diet-related health. Surprisingly, detailed quantitative dietary data across SEGs was lacking. Analysis of the most recent national nutrition survey data produced habitual intakes of a reference household (two adults and two children) in SEG quintiles of household income. Cost and affordability of habitual and recommended diets for the reference household were determined using methods based on the Healthy Diets Australian Standardised Affordability and Pricing protocol. Low SEGs reported significantly lower intakes of healthy food and drinks yet similarly high intakes of discretionary choices to high SEGs (435 serves/fortnight). Total habitual diets of low SEGs cost significantly less than those of high SEGs (AU$751/fortnight to AU$853/fortnight). Results confirmed low SEGs cannot afford a healthy diet. Lower intakes of healthy choices in low SEGs may help explain their higher rates of diet-related disease compared to higher SEGs. The findings can inform potential policy actions to improve affordability of healthy foods and help drive healthier diets for all Australians.

Sensory swap: Modelling the impact of swapping discretionary choices for similar tasting core foods on the energy, nutrients and sensory properties of Australian diets

Food choice is strongly driven by the sensory characteristics of foods with sweet, salty and fatty mouthfeel considered highly palatable and rewarding. Attempts to improve diet quality have not addressed sensory characteristics of diets before. This report describes a data modelling exercise that could underpin a dietary strategy to help support consumption of higher quality diets without compromising sensory preferences. This study used the Australian National Nutrition and Physical Activity Survey data (in 9341 adults) and the CSIRO sensory-diet database. A method was developed to find core food swaps which had a similar sensory profile as discretionary foods. This study investigated the impact of such swaps on energy and nutrient intake and the impact of the swaps on servings of food groups. The modelling resulted in a similar sensory profile of core foods to that of discretionary foods with hardness, sweetness and fatty mouthfeel all within 1–3% but the saltiness approached a 4% change. There was a small (3.6%) increase in energy intake. This swap strategy decreased the intake of risk nutrients such as saturated fat and added sugars, but not sodium, while increasing the intake of beneficial nutrients like calcium, zinc and vitamin C. Results also show that there was an increase in the intake of servings of core food groups such as fruits, grains, and dairy products but little change in vegetables. In conclusion, similar sensory swaps are possible and could underpin a diet strategy, that could be further refined through food appropriateness, to improve quality.

The food and nutrient intake of 5- to 12-year-old Australian children during school hours: a secondary analysis of the 2011-2012 National Nutrition and Physical Activity Survey.

School food intake of Australian children is not comprehensively described in literature, with limited temporal, nationally representative data. Greater understanding of intake at school can inform school-based nutrition promotion. This study aimed to describe the dietary intake of primary-aged children during school hours and its contribution to daily intake. This secondary analysis used nationally representative, cross-sectional data from the 2011 to 2012 National Nutrition and Physical Activity Survey. Dietary intake was assessed using validated 24-h dietary recalls on school days. Descriptive statistics were undertaken to determine energy, nutrients, food groups and food products consumed during school hours, as well as their contributions to total daily intake. Associations between school food intake and socio-demographic characteristics were explored. Australia. Seven hundred and ninety-five children aged 5-12 years. Children consumed 37 % of their daily energy and 31-43 % of select nutrient intake during school hours, with discretionary choices contributing 44 % of school energy intake. Most children consumed less than one serve of vegetables, meat and alternatives or milk and alternatives during school hours. Commonly consumed products were discretionary choices (34 %, including biscuits, processed meat), bread (17 %) and fruit (12 %). There were limited associations with socio-economic position variables, apart from child age. Children's diets were not aligned with national recommendations, with school food characterised by high intake of discretionary choices. These findings are consistent with previous Australian evidence and support transformation of the Australian school food system to better align school food consumption with recommendations.

Affordability of current, and healthy, more equitable, sustainable diets by area of socioeconomic disadvantage and remoteness in Queensland: insights into food choice

BackgroundPoor diet is the leading preventable risk factor contributing to the burden of disease globally and in Australia, and is inequitably distributed. As the price of healthy foods is a perceived barrier to improved diets, evidence on the cost and affordability of current (unhealthy) and recommended (healthy, more equitable and sustainable) diets is required to support policy action.MethodsThis study applied the Healthy Diets ASAP (Australian Standardised Affordability and Pricing) methods protocol to measure the cost, cost differential and affordability of current and recommended diets for a reference household in Queensland, Australia. Food prices were collected in 18 randomly selected locations stratified by area of socioeconomic disadvantage and remoteness. Diet affordability was calculated for three income categories.ResultsSurprisingly, recommended diets would cost 20% less than the current diet in Queensland as a whole. Households spent around 60% of their food budget on discretionary choices (that is, those not required for health that are high in saturated fat, added sugar, salt and/or alcohol). Queensland families would need to spend around 23% of their income on recommended diets. However, recommended diets would not be affordable in low socioeconomic or very remote areas, costing 30 and 35% of median household income respectively. The government supplements due to the SARS-CoV-2 pandemic would improve affordability of recommended diets by 29%.ConclusionsStudy findings highlight that while price is one factor affecting consumer food choice, other drivers such as taste, convenience, advertising and availability are important. Nevertheless, the study found that recommended diets would be unaffordable in very remote areas, and that low-income families are likely experiencing food stress, irrespective of where they live in Queensland. Policy actions, such as increasing to 20% the current 10% tax differential between basic healthy, and unhealthy foods in Australia, and supplementing incomes of vulnerable households, especially in remote areas, are recommended to help improve diet equity and sustainability, and health and wellbeing for all.

The Relationship of Diet and Physical Activity with Weight Gain and Weight Gain Prevention in Women of Reproductive Age.

Reproductive-age women often see increased weight gain, which carries an increased risk of long-term overweight and obesity and adverse maternal and child health outcomes. Supporting women to achieve optimal weight through lifestyle modification (diet and physical activity) is of critical importance to reduce weight gain across key reproductive life-stages (preconception, pregnancy and postpartum). This review comprehensively summarizes the current state of knowledge on the contribution of diet and physical activity to weight gain and weight gain prevention in reproductive-aged women. Suboptimal diets including a higher proportion of discretionary choices or energy intake from fats, added sugars, sweets or processed foods are associated with higher weight gain, whereas increased consumption of core foods including fruits, vegetables and whole grains and engaging in regular physical activity are associated with reduced weight gain in reproductive age women. Diet and physical activity contributing to excessive gestational weight gain are well documented. However, there is limited research assessing diet and physical activity components associated with weight gain during the preconception and postpartum period. This review highlights the need for further research to identify key dietary and physical activity components targeting the critical windows of reproductive life-stages in women to best guide interventions to prevent weight gain.

Testing the Effect of a Brief, Online and Tailored Intervention on Dietary Behaviors of Australian Adults: A Randomized Controlled Trial

ObjectivesUsing technology, nutrition messages can be tailored to individuals, which may enhance the effectiveness of online dietary behavior interventions. The study objective was to test whether a brief, online intervention using tailored nutrition messaging, supported by behavior change techniques, is more effective than a brief, online intervention using generic messages, in reducing discretionary choices (energy dense, nutrient poor foods and beverages) intake in a sample of Australian adults. MethodsA two armed randomized controlled trial was conducted from September to December 2019. The intervention group received two e-mails containing tailored nutrition messages, supported by behavior change techniques, over a 28 day period. The control group received similar e-mails using generic messages. Sociodemographic and dietary data were collected using a validated Short Food Survey at baseline and at follow-up. Statistical analysis used ANCOVA. ResultsFinal analysis included 1441 Australian adults, of which 77.3% were female, with a mean age of 50.8 (SD = 16.0) and Body Mass Index of 28.2 (SD = 6.3). There was no significant difference between delivering tailored or generic messages via e-mail, on discretionary choice intake at follow-up, after controlling for baseline discretionary choice intake (P = .49). Regardless of intervention group allocation, there was a decrease in mean intake of discretionary choices from baseline to follow-up (M = 4.2, SD = 3.9 vs. M = 3.1, SD = 4.0, respectively, P < .001), with a small to medium effect (Cohen’s d = .28). ConclusionsThe primary outcome of the study was discretionary choice intake after a 28 day brief, online intervention using tailored or generic messaging. The intervention was able to significantly reduce discretionary choice intake, however, the impact was not significantly enhanced by tailoring the intervention message. Other forms of tailoring or the inclusion of additional intervention features should be investigated to further enhance intervention effectiveness in future research. Funding SourcesThe presented work had financial support from Flinders University through a research scholarship, and from CSIRO, Healthy Development Adelaide and the Commonwealth Scholarships Program through top-up scholarships.

Minimal changes in telomere length after a 12-week dietary intervention with almonds in mid-age to older, overweight and obese Australians: results of a randomised clinical trial

Diet is a modifiable risk factor for chronic disease and a potential modulator of telomere length (TL). The study aim was to investigate associations between diet quality and TL in Australian adults after a 12-week dietary intervention with an almond-enriched diet (AED). Participants (overweight/obese, 50-80 years) were randomised to an AED (n 62) or isoenergetic nut-free diet (NFD, n 62) for 12 weeks. Diet quality was assessed using a Dietary Guideline Index (DGI), applied to weighed food records, that consists of ten components reflecting adequacy, variety and quality of core food components and discretionary choices within the diet. TL was measured by quantitative PCR in samples of lymphocytes, neutrophils, and whole blood. There were no significant associations between DGI scores and TL at baseline. Diet quality improved with AED and decreased with NFD after 12 weeks (change from baseline AED + 9·8 %, NFD - 14·3 %; P < 0·001). TL increased in neutrophils (+9·6 bp, P = 0·009) and decreased in whole blood, to a trivial extent (-12·1 bp, P = 0·001), and was unchanged in lymphocytes. Changes did not differ between intervention groups. There were no significant relationships between changes in diet quality scores and changes in lymphocyte, neutrophil or whole blood TL. The inclusion of almonds in the diet improved diet quality scores but had no impact on TL mid-age to older Australian adults. Future studies should investigate the impact of more substantial dietary changes over longer periods of time.

Algorithmic justice and groundtruthing the remote mapping of informal settlements: The example of Ho Chi Minh City’s periphery

The significant advances made in interpreting satellite imagery to monitor urban expansion and informal settlements has made important contributions to urban studies and planning. This paper focuses on the under-examined dimensions of how improvements to classifications of urban areas are not only a technical challenge but lie at the society/technology nexus. We examine why three different research groups produced different urban land use classifications of Ho Chi Minh City, Vietnam from remote sensing images. We trace how a confluence of factors including how the technology intersects with field conditions, researcher assumptions and discretionary choices, and institutional norms and agendas shaped the differences in their results. The different spatial facts they produced raises the issue of adapting algorithms for not only technical accuracy but appropriate social use. In the case of detecting informal settlements, our study finds that groundtruthing through fieldwork or collaborative partnerships is needed to not systematically overlook vulnerable populations and misinform urban planning decisions.

Hunger for Home Delivery: Cross-Sectional Analysis of the Nutritional Quality of Complete Menus on an Online Food Delivery Platform in Australia.

Online food delivery (OFD) platforms have changed how consumers purchase food prepared outside of home by capitalising on convenience and smartphone technology. Independent food outlets encompass a substantial proportion of partnering outlets, but their offerings’ nutritional quality is understudied. Little is also known as to how OFD platforms influence consumer choice. This study evaluated the nutritional quality and marketing attributes of offerings from independent takeaway outlets available on Sydney’s market-leading OFD platform (UberEats®). Complete menus and marketing attributes from 202 popular outlets were collected using web scraping. All 13841 menu items were classified into 38 food and beverage categories based on the Australian Dietary Guidelines. Of complete menus, 80.5% (11,139/13,841) were discretionary and 42.3% (5849/13,841) were discretionary cereal-based mixed meals, the largest of the 38 categories. Discretionary menu items were more likely to be categorised as most popular (OR: 2.5, 95% CI 1.9–3.2), accompanied by an image (OR: 1.3, 95% CI 1.2–1.5) and offered as a value bundle (OR: 6.5, 95% CI 4.8–8.9). Two of the three discretionary food categories were more expensive than their healthier Five Food Group counterparts (p < 0.02). The ubiquity of discretionary choices offered by independent takeaways and the marketing attributes employed by OFD platforms has implications for public health policy. Further research on the contribution of discretionary choices and marketing attributes to nutritional intakes is warranted.

Analysis of dietary intake, diet cost and food group expenditure from a 24-hour food record collected in a sample of Australian university students.

University students often cite increased monetary cost as a major barrier to improved eating behaviours. Here, we examine food expenditure behaviours in a sample of Australian university students. Students (n = 147) collected and analysed a 24-hour food record to determine their food group and nutrient intakes, then costed the food and non-tap water beverages consumed in the amounts recorded. Diet cost and food group expenditure (absolute and relative to total diet cost) were calculated and compared across socio-demographic characteristics. Spearman's Rho correlations and partial correlations (controlling for energy intake) were also used to identify associations between diet cost and intake. The median (IQR) 24-hour diet cost was $12.42 ($7.06). However, students who worked ≥20 h·wk-1 had a higher diet cost than those who worked <20 h·wk-1 (P = .002) or were unemployed (P = .002). Relative food group expenditure also differed by sex, employment status and whether special dietary requirements were reported (P's < .05). For instance, males reported spending a smaller relative amount on the fruit and vegetables food groups and a larger relative amount on discretionary choices than females (P's < 0.05). Higher diet costs were also associated with greater intakes of the fruit, vegetables and lean meat and alternatives food groups, protein, alcohol, water and calcium, and lower intakes of the grain foods food group and carbohydrate (P's < .05). These findings provide insight into university students' food expenditure behaviours and may assist health professionals to develop targeted strategies and tailored advice aimed at improving their dietary behaviours.

Strategic Pay Ratio Estimation under Social Pressure

We examine firm decisions under social pressure by focusing on firms’ discretionary choices in estimating the CEO pay ratio. Reported pay ratios are significantly lower when firms use complex methods to identify the median employee, whose total pay is the denominator in the ratio. Firms choose more complex methods when their headquarter states have more prosocial attitudes toward income inequality, greater union coverage, and have proposed pay-ratio surtaxes. Our results suggest that a prosocial culture toward income inequality influences real firm decisions, and some firms strategically estimate pay ratios that better align with social norms without making changes to pay.

Understanding the Variation within a Dietary Guideline Index Score to Identify the Priority Food Group Targets for Improving Diet Quality across Population Subgroups.

Globally, population dietary intakes fall below the guideline recommendations and large-scale interventions have had modest success in improving diet quality. To inform the development of more targeted approaches, this study analysed the variations in self-reported data from an online survey of Australian adults collected between 2015 and 2020, to identify common combinations of low scoring components within a dietary guideline index. A low score was defined as meeting less than half the guideline recommendations (a score <50 out of 100). Among 230,575 adults, a single component analysis showed that 79.5% had a low score for discretionary choices, 72.2% for healthy fats and 70.8% for dairy. The combinations approach showed 83.0% of individuals had two to five low scoring components, with men, younger adults aged 18–30 years and individuals with obesity (BMI ≥ 30) more likely to have five or more. The most common dietary pattern combination included low scores for discretionary choices, dairy and healthy fats. There was a considerable but systematic variation in the low scoring components within the dietary patterns, suggesting that interventions with the flexibility to address particular combinations of key food groups across subgroups could be an effective and resource efficient way to improve diet quality in the population.

Street‐Level Bureaucrats as Policy Entrepreneurs: The Nexus between Timing of Traffic Enforcement Activities and Road Safety Policy Outcomes

This article examines the influence of street‐level bureaucratic discretion over the timing of implementation on road safety policy outcomes. It is premised on freshly collected data from road users and traffic enforcement officers in Nairobi, Kenya. It employed Street‐Level Bureaucratic Theory for purposes of conceptualization. It observed that traffic police divisions, like most street‐level bureaucracies, are chronically under‐resourced. They do not have sufficient officers and equipment to monitor safety police compliance and conduct traffic control activities among other roles. To cope with these challenges, they make discretionary choices over activities to concentrate on at any given time. Given that the police play an important role in fostering road safety policy compliance, the study concludes that their failure to target safety implementation at the time when the violations are prevalent is linked to the incessant road safety policy failures across the globe.Related ArticlesBrogan, Michael James. 2017. “Evaluating Risk and Natural Gas Pipeline Safety.” Politics &amp; Policy 45 (4): 657‐680. https://doi.org/10.1111/polp.12211Shock, David R. 2013. “The Significance of Opposition Entrepreneurs on Local Sales Tax Referendum Outcomes.” Politics &amp; Policy 41 (4): 588‐614. https://doi.org/10.1111/polp.12028Shrock, Peter. 2010. “Changes in Relationships between State Characteristics and Regulatory Enforcement over Time.” Politics &amp; Policy 38 (5): 991‐1013. https://doi.org/10.1111/j.1747‐1346.2010.00261.x

Incentive and Supervisory Contract between Special Committees and CEO Based on the Evolutionary Game Model

The process of CEO incentive and supervision, in which the special committee plays an important role, has always been a hard problem to solve in modern corporate governance. Considering the conflicts of interest between the compensation committee, audit committee, and the CEO, this paper constructed a game model of incentive and supervision within the board of directors and analysed the strategic choices of all three and the influencing mechanisms in different contexts. The results show that there is no totally stable strategy point in the system and that there are different strategy choices in different situations; the CEO’s strategy choice is influenced by both the compensation committee and the audit committee, the incentive strategy of the compensation committee will promote the CEO’s self-interested behaviour, and the supervision strategy of the audit committee is inhibitive. The function of the special committee is dependent on its initial intention and the intensity of action. In the situation of excessive incentive by the compensation committee, the strategy choice of audit committee has periodicity, and the CEO and audit committee have periodic discretionary choice game. This study provides insight into the internal governance of the board of directors, particularly special committees, which create the incentive and supervisory contracts.

Defined benefit pension policies and social responsibility performance: do socially responsible firms walk the talk?

PurposeThis study aims to examine whether socially responsible firms have well-funded employee pension programs and whether corporate social responsibility (CSR) performance is associated with management discretionary choice of pension accounting assumptions.Design/methodology/approachThe current study examines the impact of CSR performance on two measures of pension funding and two pension accounting assumptions using regression analysis. This study uses a panel data of 13,099 firms-years across 1,428 US firms from 1992 to 2015.FindingsFirms with higher CSR scores report higher pension net assets and are less likely to have underfunded pension than their counterparts. These firms also adopt more responsible (conservative) pension accounting assumptions (i.e. lower discount rate and a higher rate of compensation increase) to estimate pension benefit obligations. Results are stronger for firms that operate in the materials and industrial sectors and for the post-2000 period when underfunded pension has become more prevalent. Firms with higher CSR scores are also less likely to have a pension freeze.Originality/valueThis study examines the signaling role of CSR by using the signaling theory to explain how senders view the signaling process as a channel to build their reputation and the correspondent inference theory to explain how receivers process and assess the signal. It provides evidence that the signal provided by CSR score is reliable in assessing firms’ commitment to non-investing stakeholders, such as employees, providing valuable information for potential employees making career decisions and for managers considering employee pension as part of corporate strategies to attract high quality workforce. This study provides inputs for public accountants providing assurance services that CSR performance has a significant impact on management reporting choices. This study also provides evidence that CSR could be considered a private provision of public goods that internalize the negative externality of the prevalent underfunded pension phenomenon.

Iodine Status and Discretionary Choices Consumption Among Primary School Children, Kinondoni Tanzania.

BackgroundTanzania is one of the countries where excessive iodine intake has been reported, to intervene, the identification of possible causes is required. This study aimed to assess iodine status and determine the critical contributors to excessive iodine intakes in schoolchildren aged 8–14 years.Materials and MethodsA total of 288 school children were randomly selected in this school-based cross-sectional study in Kinondoni municipality, Tanzania. Household salt samples were analyzed using iodine rapid field test kit while that was collected from retailers/wholesalers by iodometric titration. Spot urine samples were collected and analyzed for iodine levels using a modified microplate method following the Sandell‐Kolthoff reaction. A lifestyle questionnaire was administered to schoolchildren to assess their eating frequency of discretionary foods and salts.ResultsThe mean salt iodine content was 53.94 ± 13.02, and over 90% of household salt was iodized. Median urinary iodine concentration (UIC) was 401 µg/L indicating excessive iodine intake, and one-third of the children had UIC >500 µg/L. Nearly all school children consume discretionary choices as snacks or part of a meal. Potato chips and fried cassava were the top two discretionary choices consumed with discretionary salt use (67.3%). Potato chips (adjusted odds ratio [AOR=9.04, 95% CI: 3.61–22.63]), fried cassava (AOR=11.08, 95% CI: 3.45–35.54) and groundnuts consumption for 4–7 days/week (AOR = 0.30 95% CI: 0.09–1.0) were significantly associated with iodine intake.Conclusion and RecommendationThe evidence of excessive iodine intakes observed in previous studies and in this study should alert the policymakers to consider adjustment of the amount of iodine added to salt along with the obligation of reducing discretionary foods and salt intake.

Do Socially Responsible Firms Walk the Talk? CSR Performance and Defined Benefit Pension Policies

This study examines whether socially responsible firms are more likely to have well-funded employee pension programs. It also examines the relationship between corporate social responsibility (CSR) performance and management discretionary choice of pension accounting assumptions. Signaling theory suggests that managers use CSR performance as a credible signal of firms’ commitment to engage in socially responsible business practices to the stakeholder. Correspondent inference theory suggests that the stakeholder attributes CSR performance to firms’ reputation of serving the interests of stakeholder. To protect their reputation, firms must take actions that are consistent with the signal they send via firms’ CSR commitment. Maintaining responsible employee pension policies is a socially responsible action because the defined benefit plan is voluntary and employers have to bear greater investment risk and cost associated with the plan than the alternative retirement plan. Using panel data of 13,099 firms-years across 1,428 U.S. firms from 1992 to 2015, this study finds that firms with higher CSR scores are less likely to have underfunded pension and they report higher pension net assets than their counterparts. More socially responsible firms also adopt more responsible (i.e., conservative) pension accounting assumptions (discount rate and rate of compensation increase) to compute estimated pension benefit obligations.