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 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. 

Does corporate social responsibility reporting enhance shareholders’ value?

2018 ◽  
Vol 16 (1) ◽  
pp. 158-178 ◽  
Author(s):  
Afzalur Rashid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Performance Measures ◽  
Economic Performance ◽  
Simultaneous Equation ◽  
Content Type ◽  
Listed Firms ◽  
Csr Reporting ◽  
Corporate Social Responsibility Reporting ◽  
Corporate Social

Purpose This study aims to examine whether corporate social responsibility (CSR) and relevant reporting enhances firms’ economic performance among the listed firms in Bangladesh. Design/methodology/approach This study uses a content analysis to examine specific CSR-related attributes from 115 non-financial publicly listed firms in Bangladesh. Firm CSR reporting is evaluated against accounting and market performance measures, with a simultaneous equation approach used to control the potential endogeneity problem. Findings This study finds that CSR reporting significantly influences firm performance under both performance measures, although a firm’s economic performance does not influence CSR reporting. Research limitations/implications This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process. Practical implications The findings imply that although CSR reporting by firms in Bangladesh is discretionary in nature, the ones that report add value to their firm. Originality/value This study contributes to the literature on the practices of CSR reporting in the context of the developing countries.

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 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.

scholarly journals The effect of corporate social disclosure practice on reporting quality

2019 ◽  
Vol 24 (2) ◽  
pp. 23-38 ◽  
Author(s):  
Ivana Dropulić ◽  
Marko Čular
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Annual Report ◽  
Reporting Quality ◽  
Annual Reports ◽  
Insurance Companies ◽  
Business And Society ◽  
Insurance Sector ◽  
Csr Reporting ◽  
Corporate Social

This research is striving to provide an insight into the importance of Corporate Social Responsibility (CSR) for the insurance sector while aiming to examine various corporate social responsibility initiatives undertaken by insurance companies in Croatia. There is a broad range of potential benefits from CSR for insurance companies such as long-term sustainability and profitability, yet only several research studies on CSR practices have thus far been conducted on the insurance sector. Hence, the purpose of this research is to determine the level of CSR reporting for insurance and reinsurance companies in Croatia and its impact on reporting quality. The empirical research is based on online reporting of six aspects of corporate social responsibility to determine Corporate Social Disclosure Index (CSDI). Reporting quality is measured with Disclosure Quality Index of annual report (DQI) which is structured in five phases. This research includes all 24 insurance and reinsurance companies in Croatia and the research findings show that all insurance and reinsurance companies in Croatia publish information at least concerning two aspects of CSR. It was found that they are the most transparent regarding the human resources aspect of CSR activities and the least transparent concerning environmental aspect of CSR activities. The overall level of CSR disclosure for insurance sector in Croatia is quite low, so we can conclude that insurance and reinsurance companies in Croatia do not have a high level of CSR online disclosure. Considering the issue of reporting quality, insurance and reinsurance companies have an average quality of annual report (AR), measured by DQI of annual report. According to research findings, CSR reporting on the Internet is positively associated with DQI which leads to the conclusion that more socially responsible insurance and reinsurance companies provide annual reports of a more superior quality. Business and society interact and exert a mutual influence through their specific objectives and goals. Consequently, the link between business and society is indisputable. Companies, as one of the key segments of a society, can achieve a number of economic benefits, such as superior business results and considerable competitive advantage if they implement CSR and if they provide high quality information through their annual reports. Moreover, society benefits from socially responsible companies as it enjoys better care both for its own well-being and for that of the environment.

The impact of readability of corporate social responsibility information on credibility as perceived by generalist versus specialist readers

2019 ◽  
Vol 10 (3) ◽  
pp. 570-591 ◽  
Author(s):  
Sophie Hoozée ◽  
Sophie Maussen ◽  
Perry Vangronsveld
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Reporting Quality ◽  
Plain Language ◽  
Content Type ◽  
Csr Reporting ◽  
Perceived Credibility ◽  
Corporate Social ◽  
The Impact ◽  
Insight Into

Purpose This paper aims to study the impact of readability of corporate social responsibility (CSR) information on its credibility as perceived by generalist versus specialist readers. It is hypothesized that the readability-credibility effect will be contingent on reader specialization. Design/methodology/approach To test the hypothesis, a quasi-experiment with a 2 (readability) × 2 (reader specialization) design was conducted. Findings Overall, the results lead to the conclusion that using plain language in CSR disclosures may be beneficial for their credibility as perceived by generalist readers thanks to their higher perceived truthfulness (one specific sub-dimension of credibility). Specialist readers’ perceived credibility, on the other hand, is not influenced by the enhanced readability resulting from plain language. Research limitations/implications Student participants were used. The results may not be generalizable to practitioners with different levels of exposure to, familiarity with, and understanding of CSR disclosures. Practical implications Given the lack of credibility of CSR disclosures, insight into perceived credibility antecedents is important. This study may be considered as a first step toward informing reporting standards regarding the inclusion of more detailed guidance on how corporations should formulate their CSR information to increase its perceived credibility. Originality/value The results suggest that enhanced readability may improve the potential of CSR reports as legitimacy tools for generalist readers. The direct examination of readers complements prior studies on CSR reporting quality and the language used in CSR disclosures.

scholarly journals The relationship between corporate social responsibility and firm performance in China

2019 ◽  
Vol 9 (4) ◽  
pp. 41-48 ◽  
Author(s):  
Md. Jahidur Rahman ◽  
Yu Fang
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Listed Firms ◽  
Csr Reporting ◽  
Chinese Listed Companies ◽  
Corporate Social ◽  
The Relationship

The purpose of this study is to investigate the relationship between corporate social responsibility and firm performance in China. We have used the sample of A-share listed firms from Shenzhen and Shanghai Stock Exchange for the period 2011 to 2017. We used pooled ordinary least squares (OLS) regression as a baseline methodology. We find that corporate social responsibility has a significantly positive effect on firm performance in China. Our results suggest that Chinese companies having better financial performance undertake more CSR reporting. This paper contributes to the existing literature by investigating the effect of firm performance on CSR reporting of Chinese listed companies.

Corporate social responsibility reporting quality, board characteristics and corporate social reputation

2015 ◽  
Vol 27 (1) ◽  
pp. 95-118 ◽  
Author(s):  
Yingjun Lu ◽  
Indra Abeysekera ◽  
Corinne Cortese
Keyword(s):  
Social Responsibility ◽  
Reporting Quality ◽  
Ranking List ◽  
Content Type ◽  
Listed Firms ◽  
Board Characteristics ◽  
Csr Reporting ◽  
Social Reputation ◽  
The Social ◽  
Corporate Social

Purpose – This paper aims to examine the influence of corporate social responsibility (CSR) reporting quality and board characteristics on corporate social reputation of Chinese listed firms. Design/methodology/approach – Firms chosen for this study are drawn from a social responsibility ranking list of Chinese listed firms. The social responsibility rating scores identified by this ranking list are used to measure the social reputation of firms studied. The model-testing method is used to examine hypothesised relationships between CSR reporting quality, board characteristics and corporate social reputation. Findings – The results indicate that CSR reporting quality positively influences corporate social reputation but chief executive officer/chairman duality as a measure of board characteristics has a negative impact on corporate social reputation. Firm’s financial performance and firm size also positively influence corporate social reputation. Research limitations/implications – The relatively small sample of firms for a cross-sectional study, and the proxies constructed for various concepts to empirically test hypotheses can limit generalising findings to firms outside the social responsibility ranking list. Future studies can undertake longitudinal analysis and compare socially responsible firms with others to expand empirical findings about corporate social reputation. Originality/value – This paper investigates the influences of CSR reporting quality and board characteristics on corporate social reputation in the context of a developing country, China.

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