Audited Financial Reporting and Voluntary Disclosure of Corporate Social Responsibility (CSR) Reports

2016 ◽  
Vol 28 (2) ◽  
pp. 53-76 ◽  
Author(s):  
Long Chen ◽  
Bin Srinidhi ◽  
Albert Tsang ◽  
Wei Yu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Voluntary Disclosure ◽  
Stock Price ◽  
Reporting Quality ◽  
Positive Association ◽  
Audit Fees ◽  
Csr Reporting ◽  
Corporate Social

ABSTRACT Prior studies show that corporate social responsibility (CSR) reporting is informative to investors but lacks credibility. This study examines whether a commitment to audits of financial outcomes, proxied by audit fees, is associated with greater CSR reporting credibility. We find that audit fees are positively associated with the likelihood of standalone CSR report issuance, and this positive association becomes stronger when managers perceive a greater need for credibility, i.e., when CSR reports are longer or issued with external assurance, when firms have strong CSR concerns, and when reports are issued sporadically. Corroborating our results, we find that CSR reports issued by firms committing to high audit fees accelerate the incorporation of future earnings information into current stock price. Taken together, our findings suggest that a commitment to higher financial reporting quality has the potential to bring positive externality to firms' nonfinancial disclosures and ultimately affects the issuance of CSR reports.

scholarly journals The Effect Of Mandatory Regulation On Corporate Social Responsibility Reporting Quality: Evidence From China

2016 ◽  
Vol 33 (1) ◽  
pp. 67-86 ◽  
Author(s):  
Jianling Wang ◽  
Gaoliang Tian ◽  
Weiguo Fan ◽  
Dan Luo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Government Regulation ◽  
Reporting Quality ◽  
Government Interventions ◽  
Listed Firms ◽  
Csr Reporting ◽  
Csr Disclosure ◽  
Corporate Social

Corporate Social Responsibility (CSR) disclosure has attracted attention from regulatory bodies and academics over the past few decades. Due to the unreliability resulted from CSR voluntary disclosure, an increasing number of researchers are calling for more government regulation on CSR disclosure. Based on 1830 standalone CSR reports disclosed by the Chinese-listed firms during 2009-2012, we examine the effect of mandatory regulation on CSR reporting quality. We further hypothesize and test for the moderating effect of firm size and other characteristics on the link between government regulation on CSR reporting quality. Our results suggest that government mandatory regulation leads to an overall improvement in CSR reporting quality. We also find that this positive effect is greater when firms are larger and have better financial performance, but less when firms are controlled by government. Our study provides a direct answer to the recent calling for mandatory disclosure on CSR reports, and helps to understand why recent studies of social disclosure regulation suggest that government interventions do not seem to resolve the problems that are generally attributed to voluntary disclosures. Our findings should be of interest to the academics, regulators, and investors. 

scholarly journals Corporate Social Responsibility Reporting – a Stakeholder’s Perspective Approach

2017 ◽  
Vol 8 (1) ◽  
pp. 30-42 ◽  
Author(s):  
Thorsten Litfin ◽  
Gunther Meeh-Bunse ◽  
Katja Luer ◽  
Özlem Teckert
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Significant Development ◽  
Financial Reporting Standards ◽  
Csr Reporting ◽  
Corporate Social Responsibility Reporting ◽  
Corporate Social ◽  
Browsing Behavior ◽  
Empirical Methodology

Abstract Background: International financial reporting standards have constantly been facing fast-growing significant development. This has mainly been driven by the aim of better serving the needs of the investors. Awareness that corporate financial reporting provides short-sighted information and measures has been rising among politicians, in the society and on the financial markets. Therefore, Corporate Social Responsibility (CSR) reporting as a form of non-financial reporting has made it to limelight. Various reporting types developed, but the type of reporting is hardly codified. Objective: The goal of this paper is to identify the superior CSR reporting type from a stakeholder’s perspective. After identifying and analyzing central guidelines on CSR reporting and presenting different approaches, the authors will apply a positive-empirical methodology. Methods/Approach: In this first innovative joint attempt, eye-tracking technology is combined with a questionnaire for approaching CSR quality. Results: This study demonstrates the validity of the used methodology for the analysis of search and information browsing behavior in various types of sustainability reports. Conclusions: Overall our findings indicate that the reporting type "reference sustainability report" may not be advisable from a stakeholder’s perspective.

scholarly journals Corporate Social Responsibility Reporting, Pyramidal Structure And Political Interference: Evidence From China

2016 ◽  
Vol 32 (2) ◽  
pp. 703 ◽  
Author(s):  
Jianling Wang ◽  
Mi Zhou ◽  
Lijun Lei ◽  
Weiguo Fan
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Reporting Quality ◽  
Policy Implications ◽  
Asia Pacific ◽  
Pyramidal Structure ◽  
Listed Firms ◽  
Csr Reporting ◽  
Political Interference ◽  
Corporate Social

This paper attempts to investigate the relation between pyramidal structure and corporate social responsibility (CSR) reporting quality and the effect of political interference on the relation. Based on 1388 Chinese A-share listed firms during 2010-2012, this paper demonstrates that the separation between control and ownership rights is significantly and positively related to the CSR reporting quality in the state-owned firms (SOFs), while negatively related to the CSR reporting quality in the non-state-owned firms (NSOFs). Results also indicate that the pyramidal layer between the bottom firms and their top ultimate owners is negatively related to CSR reporting quality, particularly significant for the NSOFs. Our research enriches the corporate governance literature by giving insights into the mechanism of pyramidal structure in corporate reporting, and extends the understanding of political interference in the CSR field. This study has public policy implications for China as well as a number of other countries in the Asia–Pacific region. 

scholarly journals Nexus Between Corporate Social Responsibility, Environmental Disclosure and Financial Reporting Quality Among Listed Firms in Nigeria

2021 ◽  
Vol 12 (2) ◽  
pp. 93
Author(s):  
Odia Honesty Amenaghawon ◽  
Gbenga Ekundayo ◽  
Festus Odhigu ◽  
Mary Josiah
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Environmental Disclosure ◽  
Data Set ◽  
Listed Firms ◽  
Corporate Social

This paper seeks to provide a novel approach and insight into the synergies between corporate social responsibility (CSR), environmental disclosure (ED) and financial reporting quality (FRQ) which is emerging and changing rapidly. The study examined the nexus between corporate social responsibility (CSR), environmental disclosure (ED) and financial reporting quality (FRQ) among corporate entities listed on the Nigeria Stock Exchange (NSE). Data were collected from a sample of 169 listed firms in Nigeria. The research used a panel data set comprising of 624 firm year observations spanning the period 2015 to 2017. The empirical results of the study revealed that there exists a significant relationship between environmental disclosure(ED), firm size (FS), and financial reporting quality (FRQ). However, empirical evidence shows an insignificant relationship between social disclosure (SD), leverage and financial reporting quality (FRQ). We therefore recommend a proposal for the establishment of an inductive corporate social responsibility/environmental disclosure/financial reporting framework that future scientists/scholars can institute to explore the determinants of corporate social responsibility (CSR), environmental disclosure (ED) and financial reporting quality (FRQ) in developing countries.

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