Does External Assurance Enhance the Credibility of CSR Reports? Evidence from CSR-Related Misconduct Events in Taiwan

2019 ◽  
Vol 38 (4) ◽  
pp. 101-130 ◽  
Author(s):  
Kai Du ◽  
Shing-Jen Wu
Keyword(s):  
Firm Value ◽  
Data Availability ◽  
Repeat Offenders ◽  
Listed Firms ◽  
Perceived Credibility ◽  
Corporate Social ◽  
First Time ◽  
Jel Classifications ◽  
Country Specific

SUMMARY This study examines the credibility of corporate social responsibility (CSR) reports and the role of external assurance on CSR reports. Based on a sample of listed firms in Taiwan, we find that the issuance of CSR reports is not associated with a lower incidence, or frequency, of future CSR-related misconduct, unless accompanied by external assurance. In other words, external assurance can enhance the credibility of CSR reports. Moreover, the perceived credibility of CSR reports depends on whether firms genuinely fulfill their CSR commitments. For first-time offenders, prior CSR reports play a significant role in protecting firm value when misconduct does occur; however, for repeat offenders, such an insurance role does not exist, regardless of whether the CSR report is assured or not. Our findings attest to the benefits of CSR assurance and underscore the importance of understanding CSR practice in the context of country-specific institutions. JEL Classifications: M14; M41; M42. Data Availability: Data are available from sources identified in the paper. Manually collected data on CSR-related misconduct events will be provided upon request.

External Investigators' Follow-Up Intentions When Whistleblowers Report Healthcare Fraud: The Effects of Report Anonymity and Previous Confrontation

2020 ◽  
Vol 32 (2) ◽  
pp. 91-101
Author(s):  
Steven E. Kaplan ◽  
Danny Lanier ◽  
Kelly R. Pope ◽  
Janet A. Samuels
Keyword(s):  
Experimental Study ◽  
Early Detection ◽  
Data Availability ◽  
Medical Provider ◽  
Perceived Credibility ◽  
The Relationship ◽  
Critical Investigation

ABSTRACT Whistleblowing reports, if properly investigated, facilitate the early detection of fraud. Although critical, investigation-related decisions represent a relatively underexplored component of the whistleblowing process. Investigators are responsible for initially deciding whether to follow-up on reports alleging fraud. We report the results of an experimental study examining the follow-up intentions of highly experienced healthcare investigators. Participants, in the role of an insurance investigator, are asked to review a whistleblowing report alleging billing fraud occurring at a medical provider. Thus, participants are serving as external investigators. In a between-participant design, we manipulate the report type and whether the caller previously confronted the wrongdoer. We find that compared to an anonymous report, a non-anonymous report is perceived as more credible and follow-up intentions stronger. We also find that perceived credibility fully mediates the relationship between report type and follow-up intentions. Previous confrontation is not significantly associated with either perceived credibility or follow-up intentions. Data Availability: Data are available upon request.

Corporate Social Responsibility and Firm Value: The Mediating Role of Investor Recognition

2018 ◽  
Vol 56 (5) ◽  
pp. 1043-1054 ◽  
Author(s):  
Chen-Hsun Lee ◽  
Roger C. Y. Chen ◽  
Shih-Wei Hung ◽  
Cheng-Xing Yang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Mediating Role ◽  
Corporate Social

Investor Sentiment for Corporate Social Performance

2018 ◽  
Vol 94 (4) ◽  
pp. 401-420 ◽  
Author(s):  
James P. Naughton ◽  
Clare Wang ◽  
Ira Yeung
Keyword(s):  
Corporate Social Performance ◽  
Social Performance ◽  
Abnormal Returns ◽  
Investor Sentiment ◽  
Data Availability ◽  
Time Varying ◽  
The Public ◽  
Valuation Uncertainty ◽  
Corporate Social ◽  
Jel Classifications

ABSTRACT We document time-varying investor sentiment for corporate social responsibility (CSR) performance. We show that announcements of CSR activities generate positive abnormal returns during periods when investors place a valuation premium on CSR performance. In addition, we find that firms boost CSR performance in response to investor sentiment, and that this response is more pronounced for those firms that are more inclined to respond to investor sentiment due to valuation uncertainty and investor horizon. Our results suggest that investor sentiment plays a role in firms' commitment to CSR. JEL Classifications: M41; D82; G14; G30; G31; G32; G34. Data Availability: Data are available from the public sources cited in the text.

scholarly journals Moderating role of financial ratios in corporate social responsibility disclosure and firm value

PLoS ONE ◽  
2019 ◽  
Vol 14 (4) ◽  
pp. e0215430 ◽  
Author(s):  
Muhammad Akram Naseem ◽  
Jun Lin ◽  
Ramiz ur Rehman ◽  
Muhammad Ishfaq Ahmad ◽  
Rizwan Ali
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Financial Ratios ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social ◽  
Moderating Role

First Time Lucky? Exploring Whether First-Time Offenders Should Be Sentenced More Leniently

2013 ◽  
Vol 77 (2) ◽  
pp. 163-171
Author(s):  
Elaine Freer
Keyword(s):  
Criminal Justice ◽  
Theoretical Basis ◽  
Justice System ◽  
Minority Group ◽  
Criminal Behaviour ◽  
Repeat Offenders ◽  
The Impact ◽  
First Time ◽  
Sentence Reductions

This article explores the normative position and theoretical justifications for sentencing first-time offenders more leniently than repeat offenders, and examines whether such a practice is defensible. Those justifications include a lack of awareness of the gravity of criminal behaviour, a single lapse, that no censure has previously been communicated by the criminal justice system to that person, adolescent-limited offending, the impact of being in a minority group, and non-uniform impact. It examines whether various sentencing philosophies support sentence reductions for first-time offenders, and whether the justifiability of such practices depends on the theoretical basis and aims of sentencing, for instance the role of proportionality and deterrence.

scholarly journals Differentiation Strategy, CSR, And Real Activities Earnings Management: Evidence From Korea

2017 ◽  
Vol 33 (4) ◽  
pp. 667 ◽  
Author(s):  
Sungbin Chun ◽  
Eunho Cho
Keyword(s):  
Earnings Management ◽  
Negative Relationship ◽  
Synergy Effect ◽  
Listed Firms ◽  
Differentiation Strategy ◽  
Sensitivity Tests ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

We empirically investigate whether a differentiation strategy constrains real activities earnings management (RAEM). Further, considering corporate social responsibility (CSR) activities are a popular tool of differentiation strategy, we examine whether interactive synergy between CSR activities and the differentiation strategy strengthens the negative relationship between differentiation strategy and RAEM. Using a sample of 659 firm-year observations of Korean manufacturing listed firms during 2005-2010, we find that differentiation strategy is negatively associated with RAEM, suggesting that firms pursuing a differentiation strategy are likely to refrain from managing earnings using RAEM that goes against their strategy. We also observe that interactive synergy between differentiation and CSR strengthens the negative relationship between differentiation strategy and RAEM, implying that synergy effect between CSR and differentiation strategy even more constrains RAEM that is in conflict with both CSR and differentiation strategy. These findings are robust after we perform sensitivity tests. This study contributes to the literature by providing the first evidence on the relationship between differentiation strategy and RAEM and the moderating role of CSR activities on the relationship.

Sign in / Sign up

Export Citation Format

Share Document