Corporate Social Responsibility and Financial Reporting Quality: Evidence from Korean Retail Industry

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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How Does Financial Reporting Quality Relate to Corporate Social Responsibility Expenditures? An International Analysis

Review of Pacific Basin Financial Markets and Policies ◽

10.1142/s0219091521500235 ◽

2021 ◽

pp. 2150023

Author(s):

James Juichia Lin ◽

Chen-Yu Wang ◽

Che-Hui Cheng

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Reporting ◽

Reporting Quality ◽

Managerial Discretion ◽

Financial Reporting Quality ◽

Social Dimensions ◽

Financial Report ◽

Report Quality ◽

Corporate Social

In this study, we examine whether financial reporting quality improves corporate social responsibility (CSR) decisions. By using a sample of 3,502 observations from 18 countries, our findings show that financial reporting quality is positively (negatively) associated with CSR activities for firms that are more prone to under-invest (over-invest) in CSR. These results suggest that financial reporting quality mitigates managerial discretion in CSR activities and leads to an improvement in CSR decisions. Further, we decompose CSR into environmental and social dimensions and find that the effects of financial report quality on CSR initiatives are more pronounced for firms with a tendency to under-invest in environmental CSR.

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

Journal of Management Accounting Research ◽

10.2308/jmar-51411 ◽

2016 ◽

Vol 28 (2) ◽

pp. 53-76 ◽

Cited By ~ 37

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.

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Social capital and idiosyncratic return volatility

Australian Journal of Management ◽

10.1177/0312896217717573 ◽

2017 ◽

Vol 44 (1) ◽

pp. 3-31 ◽

Cited By ~ 8

Author(s):

Mostafa Monzur Hasan ◽

Ahsan Habib

Keyword(s):

Social Capital ◽

Corporate Social Responsibility ◽

Financial Reporting ◽

Indirect Effects ◽

Reporting Quality ◽

Jel Classification ◽

Financial Reporting Quality ◽

Return Volatility ◽

Direct And Indirect Effects ◽

Corporate Social

We examine whether regional social capital has any impact on idiosyncratic return volatility. Using US data, we find that firms headquartered in high social capital counties exhibit significantly lower idiosyncratic return volatility. This effect is more pronounced in the presence of financial reporting quality and corporate social responsibility. When we estimate the direct and indirect effects of social capital, our study reveals that the direct effect of social capital captures around 80% of the total effect. These findings suggest that firm-specific variables do not explain all of a firm’s idiosyncratic return volatility, but regional social capital also plays a role. JEL classification: G10, G12, G30, M14

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The effect of corporate social responsibility transparency on corporate payout policies

International Journal of Managerial Finance ◽

10.1108/ijmf-07-2020-0386 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Mohammad Hendijani Zadeh

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Reporting ◽

Reporting Quality ◽

Stock Repurchase ◽

Dividend Payout ◽

Content Type ◽

Study Results ◽

Data Points ◽

Corporate Social

PurposeThis study explores whether a firm's environmental and social (E&S) transparency affects corporate payout policies having two forms of dividend payout and stock repurchase payout.Design/methodology/approachFocusing on a large sample of S&P 500 firms, and utilizing Tobit estimators, the author examines whether a firm's environmental transparency and social transparency affect the levels of each dividend payout and stock repurchase payout. Transparency reflects comprehensive scores compiled by Bloomberg, capturing both the quantity (in terms of the number of data points) and the quality (with respect to objective and industry-relevant data points) of verified E&S information attributed to a firm's E&S practices.FindingsThe findings demonstrate that transparency, both environmental and social, relates to higher corporate payouts (i.e. higher dividend payout and higher stock repurchase payout). These positive relationships are magnified for firms suffering from high information asymmetry, low financial reporting quality and for those with weak governance. Moreover, the author finds that dividend payout is more stable in high E&S transparent firms than in low E&S transparent firms. The study findings continue to hold after a battery of robustness and sensitivity checks such as alternative measures, specifications, estimators, use of the instrumental variable regression approach and mitigation of omitted variable biasResearch limitations/implicationsThe study findings suggest that investors' interests (demanding for high corporate payouts) and other stakeholders' interests (demanding for high E&S transparency) are not necessarily in conflict, and investors' demands can be met while maintaining commitment to high E&S transparency. In addition, the study results imply that higher E&S transparency complements higher corporate payouts and signals to the market both a firm's commitment to E&S transparency and its ability to have high corporate payouts. In this line, the study findings clarify the high value of E&S transparency screening in investors' decision-making process as such transparency leads to higher corporate payouts for investors (i.e. facilitating wealth transfer to shareholders). Finally, the study findings are relevant to standard setters and regulators who emphasize the importance of E&S transparency.Originality/valueBy integrating two distinct streams of literature on corporate finance and corporate social responsibility (CSR), the author introduces E&S transparency as a novel nonfinancial driver of corporate payout policies. Finally, the study findings are in line with the notion that firm transparency (reflected in E&S transparency) can be a crucial element in justifying a firm's corporate payout policies and, in an overall view, firm policies.

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The Relationsip Between Corporate Social Responsibility Through Financial Reporting Quality

International Journal of Environmental, Sustainability, and Social Science ◽

10.38142/ijesss.v2i3.117 ◽

2022 ◽

Vol 2 (3) ◽

pp. 134-143

Author(s):

Rizalnur FIRDAUS ◽

Tio Arriela DOLOKSARIBU ◽

Nova Dwi HERNANIK

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Reporting ◽

Significant Relationship ◽

Value Relevance ◽

Reporting Quality ◽

Manufacturing Companies ◽

Corporate Social ◽

The Impact

This study aims to examine the impact of Corporate Social Responsibility on the Quality of Financial Reporting in manufacturing companies in Indonesia. The research sample consisted of 75 manufacturing companies that were observed from 2017 to 2019. This study uses a regression data panel to test the effect of Corporate Social Responsibility (CSR) which is calculated by using a dummy variable on the Quality of Financial Reporting (FRQ) which uses a measure consisting of value relevance (VR), acrual quality (AQ) and earning persistence (EP). The results of research on manufacturing companies in Indonesia indicate that there is a positive and significant relationship between Corporate Social Responsibility and value relevance. The results of research on manufacturing companies in Indonesia indicate that there is a positive and significant relationship between Corporate Social Responsibility and accrual quality. The results of research on manufacturing companies in Indonesia show that there is a positive and significant relationship between Corporate Social Responsibility and earning persistence.

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Corporate Social Responsibility (CSR) Disclosure and the Choice between Bank Debt and Public Debt

Accounting Horizons ◽

10.2308/acch-52631 ◽

2019 ◽

Vol 34 (1) ◽

pp. 151-173 ◽

Cited By ~ 2

Author(s):

Weiqiang Tan ◽

Albert Tsang ◽

Wenming Wang ◽

Wenlan Zhang

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Reporting ◽

Public Debt ◽

Reporting Quality ◽

Data Availability ◽

Bank Debt ◽

Private Debt ◽

Csr Disclosure ◽

Corporate Social

SYNOPSIS This study examines whether and how corporate social responsibility (CSR) disclosure plays a role in firms' choices of public versus private debt financing. We find that borrowing firms with higher levels of CSR disclosure tend to rely more on public debt than private debt. Further analyses reveal that the relation between CSR disclosure and firms' reliance on public debt is stronger for borrowing firms with higher financial reporting quality, and with standalone or externally assured CSR reports. In addition, we find that borrowing firms with higher levels of CSR disclosure tend to issue bonds at more favorable terms (i.e., lower bond yield spread and longer maturity). Together, our findings are consistent with the notion that nonfinancial CSR disclosure plays an incrementally important role in a firm's debt placement decisions. JEL Classifications: G32; M14; M21. Data Availability: Data are available from the public sources identified in the paper.

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