Corporate social responsibility performance and information asymmetry

Cho, Seong Y.; Lee, Cheol; Pfeiffer, Ray J.

doi:10.1016/j.jaccpubpol.2012.10.005

Cited by 482 publications

(419 citation statements)

References 32 publications

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“…Better performance in CSR leads companies to greater disclosure of aspects related to CSR (García-Sánchez and Martinez-Ferrero 2018). CSR reports are management's communication to all stakeholders about performance, which is day-by-day becoming important for market participants (Cho et al 2013). CSR information may be of interest to stakeholders as it covers a wide range of indicators of economic, social and environmental aspects (Williams and Pei 1999).…”

Section: Independent Directors and Csr Disclosurementioning

confidence: 99%

“…Investors in recent years are looking to CSR information as one of the key factors in making an investment decision (Cohen et al 2011;Chau 2006). Cho et al (2013) show it helps in bringing down the uncertainty about the firm's value and Dhaliwal et al (2012) shows that CSR information reduces information asymmetry and decreases the analyst forecast error.…”

Section: Independent Directors and Csr Disclosurementioning

confidence: 99%

“…The agency perspective suggests that family members may be opportunist and may take advantage of available information at the expense of minority shareholders (Chen et al 2008) because family members have more information available than non-family members (Chrisman et al 2004;Chau and Gray 2002). However, in family firms, the disclosure of information is not so necessary to decrease asymmetries because of the "information efficiency effect" (Cho et al 2013). This effect suggests that if a family member performs insider trading based on their information advantage, less-informed investors will follow them, reducing the information asymmetry.…”

Section: Introductionmentioning

confidence: 99%

“…CSR information is gradually gaining importance in the global economy and firms have widely adopted it as the medium of communication with all stakeholders (Cho et al 2013). Among the voluntary disclosures, CSR information is used as the most valuable information by analysts and investors (Prince's Accounting for Sustainability Project Report 2013).…”

Section: Introductionmentioning

confidence: 99%

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Board Independence and Corporate Social Responsibility Disclosure: The Mediating Role of the Presence of Family Ownership

Bansal

Pérez

Ariza

2018

Administrative Sciences

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This paper examines the impact of board independence on corporate social responsibility (CSR) disclosure and analyses the moderating effect of the presence of family ownership. Using an international sample from 29 countries from 2006 to 2014, our panel Tobit estimation shows that board independence is negatively associated with CSR disclosure practices and they present opposition to CSR disclosure practices. However, family ownership moderates the relationship and enforces the positive orientation of independent directors towards CSR disclosure. This shows that the presence of family ownership reduces independent director concern of reputation risks associated with receiving misleading information and family firms decrease the asymmetries of information between the independent director and management. The study also finds that independent directors encourage CSR disclosure in family firms more in civil law countries where investor protection is low compared to common law countries where investor protection is high.

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Section: Independent Directors and Csr Disclosurementioning

confidence: 99%

Section: Independent Directors and Csr Disclosurementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Board Independence and Corporate Social Responsibility Disclosure: The Mediating Role of the Presence of Family Ownership

Bansal

Pérez

Ariza

2018

Administrative Sciences

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“…Despite the wide variety of information provided and the interests involved, a crucial aim of this report is the organization's access to capital, since, according to its framework, "The primary purpose of an integrated report is to explain to providers of financial capital how an organization creates value over time" [23] (p. 8). The IR proposition builds on the explicit demand for a reporting approach integrating financial and sustainability information suggested by scholars and practitioners on the expectation of improving the decision-making processes for providers of financial capital [71][72][73]. Nevertheless, there is not enough evidence on whether integrated reports are concretely more useful than traditional annual reports in supporting investors' decisions [74][75][76].…”

Section: Disclosing Materials Information: the Hypotheses Developmentmentioning

confidence: 99%

Corporate Disclosure, Materiality, and Integrated Report: An Event Study Analysis

2017

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Within the extensive literature investigating the impacts of corporate disclosure in supporting the sustainable growth of an organization, few studies have included in the analysis the materiality issue referred to the information being disclosed. This article aims to address this gap, exploring the effect produced on capital markets by the publication of a recent corporate reporting tool, Integrated Report (IR). The features of this tool are that it aims to represent the multidimensional impact of the organization's activity and assumes materiality as a guiding principle of the report drafting. Adopting the event study methodology associated with a statistical significance test for categorical data, our results verify that an organization's release of IR is able to produce a statistically significant impact on the related share prices. Moreover, the term "integrated" assigned to the reports plays a significant role in the impact on capital markets. Our findings have beneficial implications for both researchers and practitioners, adding new evidence for the IR usefulness as a corporate disclosure tool and the effect of an organization's decision to disclose material information.

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The influence of environmental performance on environmental disclosures: An empirical study in Ghana

2019

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The purpose of the study is to assess the level of corporate environmental disclosures in the corporate annual reports of mining and manufacturing companies in Ghana and their environmental performance. It further assesses the effect of environmental performance on environmental disclosures. A content analysis of the corporate annual reports of 25 companies over a 4‐year period for their environmental disclosures was undertaken using a disclosure index developed in line with Wiseman's (1982) environmental disclosure index. The environmental performance of the sampled firms was proxied by the rating score based on the AKOBEN environmental performance rating tool. A multiple regression analysis was undertaken using a random effect estimation model to test for the effects of environmental performance on environmental disclosures. The study finds that mining companies make more environmental disclosures than the manufacturing companies. Environmental performance was found to be a statistically significant but negative determinant of environmental disclosures. This indicates that mining and manufacturing companies make environmental disclosures to legitimize their activities in the society. The study did not consider the quality of the environmental disclosures. In addition, the study does not consider all companies assessed by the rating tool due to the selection criteria used in sampling the companies for the study. Management of companies needs to improve upon their environmental disclosure practices to gain legitimacy in the society. To the author's knowledge, this is the first study that uses the performance score of an environmental performance rating tool developed in the context of a developing country.

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Corporate social responsibility performance and information asymmetry

Cited by 482 publications

References 32 publications

Board Independence and Corporate Social Responsibility Disclosure: The Mediating Role of the Presence of Family Ownership

Board Independence and Corporate Social Responsibility Disclosure: The Mediating Role of the Presence of Family Ownership

Corporate Disclosure, Materiality, and Integrated Report: An Event Study Analysis

The influence of environmental performance on environmental disclosures: An empirical study in Ghana

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