Demand-driven corporate social responsibility and accounting quality: Evidence on symbolic vs substantive change after large technological disasters

This study aimed to test how corporate social responsibility (CSR) can affect the impact of corporate financial distress on earnings management. Based on the existing literature, distressed firms tend to hide their financial crises through earnings manipulation. However, as CSR can positively affect companies in terms of performance, risk reduction, and market response, the better a firm’s CSR is the less managers will attempt earnings management even if they experience temporary distress. Consistent with the literature, test results using Korean-listed companies show that distress increased earnings management, and we confirmed that CSR weakened the positive effect of distress on earnings management. After testing each of the CSR subcategories, significant results were found mainly on environmental performance, reflecting the globally increasing interest in environmental issues. This study contributes to the literature on distress and earnings management, which rarely considers CSR as a moderating factor.

Download Full-text

Mandatory Corporate Social Responsibility (CSR) Reporting and Financial Reporting Quality: Evidence from a Quasi-Natural Experiment

Journal of Business Ethics ◽

10.1007/s10551-016-3296-2 ◽

2016 ◽

Vol 152 (1) ◽

pp. 253-274 ◽

Cited By ~ 26

Author(s):

Xue Wang ◽

Feng Cao ◽

Kangtao Ye

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Reporting ◽

Natural Experiment ◽

Reporting Quality ◽

Financial Reporting Quality ◽

Csr Reporting ◽

Corporate Social ◽

Quality Evidence

Download Full-text

Does mandatory corporate social responsibility disclosure affect share price responses to earnings announcements? Evidence from China

Journal of International Accounting Research ◽

10.2308/jiar-2021-075 ◽

2021 ◽

Author(s):

Peixin Wang ◽

Haijie Huang ◽

Edward Lee ◽

Jirada Petaibanlue

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Earnings Announcements ◽

Share Price ◽

Accounting Quality ◽

Exogenous Shock ◽

Earnings Response Coefficient ◽

Csr Disclosure ◽

Corporate Social ◽

The Impact

We utilize the mandatory corporate social responsibility (CSR) disclosure regulation in China as an exogenous shock to evaluate the impact of such disclosures on investors as end-users of accounting information based on the analysis of share price responses to earnings announcements. Specifically, we observe that firms with mandated CSR disclosure experience an increase in earnings response coefficient and a decrease in post-earnings announcement drift. Furthermore, these effects are greater among CSR-sensitive industries, state-owned enterprises, and lower accounting quality firms. Additional analysis also reveals that these effects vary by the quality of CSR disclosure and CSR performance. These findings suggest that CSR disclosure provides incremental information that are useful for investors to assess firms’ future prospects and uncertainties. A broader implication of our study is that mandating CSR disclosure could improve market information efficiency and benefit outside investors.

Download Full-text

Institutional environment, internal control and corporate social responsibility disclosure quality: evidence from China

International Journal of Applied Decision Sciences ◽

10.1504/ijads.2020.104291 ◽

2020 ◽

Vol 13 (1) ◽

pp. 1

Author(s):

Lijun Wu ◽

Hua Bu

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Internal Control ◽

Institutional Environment ◽

Disclosure Quality ◽

Corporate Social Responsibility Disclosure ◽

Corporate Social ◽

Quality Evidence

Download Full-text

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

Journal of Distribution Science ◽

10.15722/jds.17.6.201906.33 ◽

2019 ◽

Vol 17 (6) ◽

pp. 33-42 ◽

Cited By ~ 1

Author(s):

Sang-Su Kim ◽

이정환

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Reporting ◽

Reporting Quality ◽

Financial Reporting Quality ◽

Retail Industry ◽

Corporate Social ◽

Quality Evidence

Download Full-text

Corporate Social Responsibility and Financial Information

Conceptual and Theoretical Approaches to Corporate Social Responsibility, Entrepreneurial Orientation, and Financial Performance - Advances in Business Strategy and Competitive Advantage ◽

10.4018/978-1-7998-2128-1.ch001 ◽

2020 ◽

pp. 1-19

Author(s):

Irina Filipa Gavancha ◽

Inna Sousa Paiva

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Economic ◽

Financial Information ◽

Positive Pressure ◽

Accounting Quality ◽

Strong Link ◽

Asymmetry Information ◽

Positive Elements ◽

Corporate Social

The importance of corporate social responsibility (CSR) has been increasing especially in the last decade, due to the positive pressure exerted by society in general. This chapter analyses the relevance of CSR, associated theories and studies carried out in the last decade related to financial information and consequently accounting quality. The strong link between CSR and financial information that is directed towards knowledge of mitigation of asymmetry information is evident. We aim to contribute to the development of sustainability accounting, presenting assumptions that mitigate the blocks of practice of CRS acts that make the return of positive elements possible, namely the image of entities and their financial economic improvement.

Download Full-text