Top Management Teams’ Academic Experience and Firms’ Corporate Social Responsibility Voluntary Disclosure

2020 ◽  
Vol 16 (2) ◽  
pp. 293-333
Author(s):  
Zhiming Ma ◽  
Hong Zhang ◽  
Weiguo Zhong ◽  
Kaitang Zhou
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Top Management Teams ◽  
Management Teams ◽  
Top Management ◽  
Academic Background ◽  
Top Executives ◽  
Csr Disclosure ◽  
Corporate Social

ABSTRACTCorporate social responsibility (CSR) disclosure is becoming increasingly important for modern corporations. Focusing on voluntary CSR disclosure and drawing on upper echelons theory, we propose that voluntary CSR disclosure is the manifestation of managerial preferences (e.g., managers’ professional ethical values and standards). Specifically, we argue that top executives with an academic background tend to have higher professional and ethical standards than their non-academic counterparts. These standards lead them to act with self-restraint and to perceive CSR disclosure as an opportunity rather than a threat. Compared with non-academic executives, therefore, top executives with an academic background provide stakeholders with more CSR information. Based on a sample of publicly listed firms in China, we find a significant difference in voluntary CSR disclosure between firms led by academic executives and firms without academic top executives. This difference is smaller for firms that are state-owned, firms that are audited by large audit firms, and firms with greater analyst coverage. We contribute to the literature on CSR voluntary disclosure by providing an in-depth analysis of the effects of top management teams’ academic backgrounds.

scholarly journals Corporate Social Responsibility Disclosure and Its Effect on Firm Risk: An Empirical Research on Vietnamese Firms

2021 ◽  
Vol 13 (22) ◽  
pp. 12933
Author(s):  
Cao Thi Mien Thuy ◽  
Nguyen Vinh Khuong ◽  
Nguyen Thanh Liem
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Emerging Market ◽  
Listed Companies ◽  
Policy Implications ◽  
Firm Risk ◽  
Research Perspective ◽  
Csr Disclosure ◽  
Corporate Social

The purpose of the study was to gather empirical evidence on the influence of corporate social responsibility (CSR) disclosure on firm risk of Vietnam’s publicly listed companies. We used adjusted OLS estimation and regression analysis with adjusted panel data for heteroskedasticity and/or autocorrelation to analyze the correlation using data from 225 listed companies on Vietnam’s stock market from 2014 to 2019. The study’s sample period is relatively recent in the emerging market, especially considering regulatory differences and the availability of voluntary disclosure requirements. The findings of research on the relationship between CSR and corporate risk are mixed, particularly in developing markets. Research findings reveal a negative and significant association between CSR and firm risk, implying that stronger CSR performance lowers a company’s risk. This aims to strengthen a research perspective of this connection in emerging countries. Following that, we discuss some policy implications for listed firms and regulators in CSR disclosure.

Who can realize the “spot value” of corporate social responsibility?

2020 ◽  
Vol 11 (4) ◽  
pp. 717-743
Author(s):  
Shiyu Wang ◽  
Yan Zhang ◽  
Guanzhen Wang ◽  
Zhibin Chen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Abnormal Returns ◽  
Chinese Stock Market ◽  
Chinese Market ◽  
Content Type ◽  
Retail Investors ◽  
Csr Disclosure ◽  
Corporate Social

Purpose This paper answers, in the Chinese stock market, who can realize the “spot value” of corporate social responsibility (CSR). Design/methodology/approach The authors use event-study to build the research framework. Using CSR report content analysis, the authors measure the specification level of CSR disclosure. Applying the Baidu index, the authors mine Chinese investors’ profiles data to investigate retail investor heterogeneity closely. Findings The authors find strong evidence that the measure captures a behavioral bias in CSR pricing: firms that choose to disclose CSR report experience positive abnormal return more among retail investors than institutional investors, more among young investors than older, but no difference between female and male investors. Practical implications For Chinese public firms, the authors give them evidence that they can realize positive abnormal returns by applying certain CSR disclosure strategies. For Chinese investors, especially retail investors and youths, the authors ask them to rethink whether their positive evaluation of CSR is a rational trade-off choice or whether they are fooled by the “hedging mask” and “attention-grabbing.” Social implications The findings can give some suggestions to regulators: encouraging voluntary disclosure and reducing mandatory disclosure can drive enterprises to engage in more CSR activities because the voluntarily CSR disclosure can realize both long-term value and “spot value.” Complementarily, a more rigorous CSR report auditing regulation can suppress the “greenwash” by increasing the “lying cost.” Originality/value Using behavioral finance theory, the authors connect the gap between neoclassical research on the “U-shaped” value realization of CSR and the increasing voluntary CSR disclosure in the Chinese market. The authors find that heuristic reason and emotionality orientation results in the Chinese “CSR-friendly” market.

scholarly journals MENGIDENTIFIKASI PERAN TEORI DAN KARAKTERISTIK PERUSAHAAN YANG DAPAT MEMPENGARUHI PENGUNGKAPAN CSR

2020 ◽  
Vol 3 (2) ◽  
pp. 181-194
Author(s):  
Nufaisa Nufaisa ◽  
Binti Shofiatul Jannah
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stakeholder Theory ◽  
Voluntary Disclosure ◽  
Theoretical Perspective ◽  
Theoretical Development ◽  
Social Activities ◽  
Legitimacy Theory ◽  
Csr Disclosure ◽  
Corporate Social

Corporate Social Responsibility (CSR) is a part of corporate business social activities as an effort to bring good impact on environmental issues. Information regarding social activities, both economic also non-economic, has attracted the attention of users of financial reports. The disclosure of corporate social responsibility to the public is still voluntary. The theoretical development of CSR is stakeholder theory and legitimacy theory. Both of these theories come from a political economy perspective which explains the motivation for social disclosure. Stakeholder theory try to clarify the credentials of stakeholders. Meanwhile, the legitimacy theory explains that voluntary disclosure is component of the legitimacy process. The disclosure of corporate social responsibility can also be influenced by company characteristics, such as firm size, profitability, company profile, the number of  the board of commissioners, leverage, ownership structure, business age, company size, growth and industrial type. This paper aims to explain the motivation for CSR disclosure from a theoretical perspective and identify company characteristics that can influence CSR disclosure.

Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting

2011 ◽  
Vol 86 (1) ◽  
pp. 59-100 ◽  
Author(s):  
Dan S. Dhaliwal ◽  
Oliver Zhen Li ◽  
Albert Tsang ◽  
Yong George Yang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Equity Capital ◽  
Forecast Errors ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Cost

ABSTRACT: We examine a potential benefit associated with the initiation of voluntary disclosure of corporate social responsibility (CSR) activities: a reduction in firms’ cost of equity capital. We find that firms with a high cost of equity capital in the previous year tend to initiate disclosure of CSR activities in the current year and that initiating firms with superior social responsibility performance enjoy a subsequent reduction in the cost of equity capital. Further, initiating firms with superior social responsibility performance attract dedicated institutional investors and analyst coverage. Moreover, these analysts achieve lower absolute forecast errors and dispersion. Finally, we find that firms exploit the benefit of a lower cost of equity capital associated with the initiation of CSR disclosure. Initiating firms are more likely than non-initiating firms to raise equity capital following the initiations; among firms raising equity capital, initiating firms raise a significantly larger amount than do non-initiating firms.

scholarly journals Voluntary Disclosure and Market Valuation of Sustainability Reports in Korea: The Case of Chaebols

2019 ◽  
Vol 11 (13) ◽  
pp. 3577
Author(s):  
Dongheun Lee ◽  
Sejoong Lee ◽  
Na-Eun Cho
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Capital Market ◽  
Voluntary Disclosure ◽  
Firm Value ◽  
Effective Means ◽  
Sustainability Reports ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Positive Effect

This paper investigates whether chaebol firms tend to issue corporate social responsibility (CSR) reports more than non-chaebol firms. Based on previous studies documenting chaebols’ tunneling activities at the expense of other shareholders, we anticipate that chaebol firms are more likely to voluntarily disclose their CSR reports even if investors may discount their values because CSR disclosure is an effective means of window dressing. The empirical results support our expectations. We find that chaebol firms are more likely to disclose CSR reports and a chaebol firm’s CSR report disclosure is less evaluated than a non-chaebol firm in the capital market. The result indicates that even if CSR report disclosure may have positive effect on firm value in general, investors may discount the value of chaebol firms’ CSR reports.

Can corporate philanthropy be driven from the bottom to the top? Evidence from China

2019 ◽  
Vol 11 (5) ◽  
pp. 841-861
Author(s):  
Lin Zhang ◽  
Shenjiang Mo ◽  
Honghui Chen ◽  
Jintao Wu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Philanthropy ◽  
Practical Implication ◽  
Top Management Teams ◽  
Top Management ◽  
Content Type ◽  
Team Members ◽  
Top Managers ◽  
Corporate Social

Purpose This paper aims to demonstrate that corporate philanthropy can be driven from the bottom to the top. In particular, the authors investigate whether employees’ donations influence corporate philanthropy and under what conditions this effect occurs. Design/methodology/approach The sample consists of Chinese listed firms that disclosed the amount employees donated in response to the Sichuan earthquake in 2008. The Heckman two-stage selection model is applied to examine the effect of employees’ donations on corporate philanthropy and the conditions under which this effect occurs. Findings The results show that employees’ donations are positively associated with corporate philanthropy. Furthermore, a higher percentage of females in top management teams can significantly strengthen the effect of employees’ donations on corporate philanthropy. When the average age of the top management team members is high, the influence of employees’ donations on corporate philanthropy is stronger. Practical implications This is an empirical study that helps to predict corporate philanthropy. Another practical implication is that employees should be recognized as an important element of corporate social responsibility. Social implications The results encourage employees to become drivers of corporate social responsibility. Originality/value This study contributes to the corporate social responsibility literature by demonstrating that corporate philanthropy can be driven from the bottom to the top. Moreover, this study integrates signaling theory into the study of corporate social responsibility. Finally, this study identifies two important contingent factors that strengthen the effect of employees on top managers’ decisions about corporate social responsibility.

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. 

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