10-K Disclosure of Corporate Social Responsibility and Firms’ Competitive Advantages

Connon, James N.; Ling, Zhejia; Wang, Qian; Watanabe, Olena V.

doi:10.1080/09638180.2019.1670223

Cited by 51 publications

(43 citation statements)

References 81 publications

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“…Textual analysis as a tool for assessing CSR disclosure has become more widespread in the last decade (e.g. Cannon et al, 2020;Cho et al, 2010;Loughran et al, 2009;Melloni et al, 2017;Muslu et al, 2016;Nazari et al, 2017). However, only a few studies assess topic-specific CSR disclosure, i.e.…”

Section: Topic-specific Csr Disclosure Measuresmentioning

confidence: 99%

“…Second, to the best of our knowledge, our paper is among the first to investigate the value relevance of CSR disclosure with regard to specific topics of CSR. Previous studies, with few exceptions (Bernardi and Stark (2018); Ioannou and Serafeim (2017) and Cannon et al (2020)), tend to examine CSR disclosure on an aggregated level. Our topic-specific analysis, however, shows that there are differences in the significance and strength of these associations depending on the distinct CSR topic.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The information content of corporate social responsibility disclosure in Europe: an institutional perspective

Mittelbach‐Hörmanseder¹,

Hummel

Rammerstorfer³

2020

European Accounting Review

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This study examines how firm value (measured via stock prices) is related to corporate social responsibility (CSR) disclosure and how the institutional environment influences this relationship. To test our hypotheses, we apply textual analysis to our data on firms listed in the STOXX Europe 600 for the period 2008-2016. Our investigation of topic-specific CSR disclosure indicates that when firms shifted from voluntary to mandatory reporting, following the announcement of Directive 2014/95/EU, the association between their share price and CSR disclosure became significantly negative. For the period before the announcement, this relationship is either positive or statistically insignificant. We also show that the institutional environment can impact this relationship in four distinct ways: the level of CSR awareness, the level of employee protection, the degree of enforcement and the strength of the legal environment. We find that the first two have a negative impact on the incremental value relevance of specific CSR disclosure, whereas the last two have a positive impact. Lastly, our results also indicate that the magnitude of (a) the relationship between a firm's CSR disclosure and its value and (b) the impact that the firm's institutional environment has on this relationship depends on the specific CSR topics.

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Section: Topic-specific Csr Disclosure Measuresmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The information content of corporate social responsibility disclosure in Europe: an institutional perspective

Mittelbach‐Hörmanseder¹,

Hummel

Rammerstorfer³

2020

European Accounting Review

View full text Add to dashboard Cite

show abstract

“…On the one hand, CSR activities might be positively related to firm value due to competitive advantages (Cannon et al, 2017); increased sales volumes -particularly among high-quality customers (Lev, Petrovits, & Radhakrishnan, 2010); better reputation (Fombrun and Shanley, 1990); and higher innovation and operational efficiency (Dixon-Fowler, Slater, Johnson, Ellstrand, & Romi, 2013). This line of reasoning is often referred to as the "business case of sustainability".…”

Section: Value Relevance Of Csr Disclosuresmentioning

confidence: 99%

“…Recently, the use of textual analysis to assess CSR disclosures has arisen (e.g. Cannon et al, 2017;Loughran, McDonald, & Yun, 2009;Melloni, Caglio, & Perego, 2017). Those studies often refer to textual characteristics, such as readability, tone, optimism or certainty and text length (Cho et al, 2010;Melloni et al, 2017;Muslu, Mutlu, Radhakrishnan, & Tsang, 2016;Nazari, Hrazdil, & Mahmoudian, 2017).…”

Section: Topic-specific Csr Disclosure Measuresmentioning

confidence: 99%

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Information Content of Corporate Social Responsibility Disclosures in Europe: An Institutional Perspective

Mittelbach-Hoermanseder¹,

Hummel

Rammerstorfer

2019

SSRN Journal

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For a sample of STOXX Europe-600 constituents and a reporting period of nine years, we investigate the role of the institutional environment on the value relevance of corporate social responsibility (CSR) disclosures in firms' annual reports. Using textual analysis, we construct topic-specific disclosures measures that examine the prevalence of CSR topics with respect to the EU CSR directive, namely environmental, social and employee matters, human rights, and anti-corruption and bribery. The results reveal the value relevance of CSR disclosures, although the sign depends on the regulatory setting; it is positive before the issuance of the CSR directive and negative after it. Furthermore our results indicate that the incremental value relevance of topic-specific CSR disclosure is affected by the institutional environment, specifically, it is negatively related to country-level CSR awareness as well as employee protection and positively related to both, the legal strength and the level of enforcement. Our results also vary depending by the underlying topics.

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Climate change disclosure and evolving institutional investor salience: Roles of the Principles for Responsible Investment

Azuma,

Higashida

2024

Bus Strat Env

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This study investigates the relationship between climate change disclosure and institutional investors. A particular focus of the present study is the question of if and how the relationship is affected by the Principles for Responsible Investment (PRI). A relevant context to the question is shareholder engagement, where institutional investors' legitimacy affects the outcomes. Thus, this study examines Japan, where shareholder engagement is the main pathway for institutional investors to convey their ESG‐related influence to investee companies. Using the stakeholder salience theory as a theoretical framework, the empirical results of analyzing 17,604 firm‐year eXtensible Business Reporting Language (XBRL) documents of listed Japanese companies provide evidence for the following. First, institutional stakeholders' holding ratio has positively influenced corporate climate change disclosure (power). Second, the positive influence of institutional investors is more significant when PRI‐signed institutional investors are present (legitimacy). Third, the aforementioned relations gained statistical significance gradually during the analysis period (urgency). Fundamentally, this study shows that the stakeholder salience theory contributes to a deeper understanding of the relationship.

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10-K Disclosure of Corporate Social Responsibility and Firms’ Competitive Advantages

Cited by 51 publications

References 81 publications

The information content of corporate social responsibility disclosure in Europe: an institutional perspective

The information content of corporate social responsibility disclosure in Europe: an institutional perspective

Information Content of Corporate Social Responsibility Disclosures in Europe: An Institutional Perspective

Climate change disclosure and evolving institutional investor salience: Roles of the Principles for Responsible Investment

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