Determinants and Economic Consequences of Non-financial Disclosure Quality

Gao, Fang; Dong, Yi; Ni, Chenkai; Fu, Renhui

doi:10.1080/09638180.2015.1013049

Cited by 197 publications

(159 citation statements)

References 73 publications

(148 reference statements)

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“…According to Wang and Chen (2015), CSR policies not only enhance reputation but also lead to good Þ nancial performance. The Þ ndings of Gao et al (2015) also suggest that higher quality CSR disclosures deliver economic beneÞ ts. Similar studies have been carried out in many countries worldwide.…”

Section: Literature Reviewmentioning

confidence: 81%

Finding the Link between CSR Reporting and Corporate Financial Performance: Evidence on Czech and Estonian Listed Companies

Strouhal

Gurvitš²,

Nikitina-Kalamäe³

et al. 2015

CEBR

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Despite the fact that obligations to publish reports on corporate social responsibility will come into force in the European Union from 2018, an increasing number of companies are starting to implement corporate social responsibility (CSR) policy into their everyday business practices, and as a result the information of this activity is disclosed in CSR reports or within annual reports. As the disclosure of such information is currently voluntarily based, we believe that the growing popularity of CSR leads to a direct link between the sustainability of the company and its nancial performance. The purpose of this paper is therefore to determine the linkage between CSR and nancial performance within two countries in the CEE region -Czech and Estonia -using data from 2012 -2013. We compare return on assets and normalized market value added of listed companies. Based on the results, we can state that the implementation of a standalone CSR report does not have any direct linkage with the nancial performance of the tested companies.

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Section: Literature Reviewmentioning

confidence: 81%

Finding the Link between CSR Reporting and Corporate Financial Performance: Evidence on Czech and Estonian Listed Companies

Strouhal

Gurvitš²,

Nikitina-Kalamäe³

et al. 2015

CEBR

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“…The strengthening of CSR disclosure declares the accountability of firms’ CSR activities to a broader spectrum of stakeholders, which can improve stakeholders’ monitoring capabilities. Therefore, they can exert higher pressure on firm insiders and, in turn, require firms to engage in more CSR activities rather than paying out dividends to shareholders (Wang, ; Gao et al ., ; Chen et al ., ; Ormazabal, ) . If this channel works, mandatory CSR disclosure reduces shareholders’ incomes obtained from the firm through a shift in relative power from shareholders to stakeholders.…”

Section: Introductionmentioning

confidence: 99%

Mandatory corporate social responsibility disclosure and dividend payouts: evidence from a quasi‐natural experiment

Zhang

2019

Accounting & Finance

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Employing the enactment of a regulation that mandates a subset of firms to disclose their corporate social responsibility (CSR) activities as a quasi-natural experiment, we find that mandatory CSR disclosure reduces firms' dividend payouts significantly. Further analyses indicate that the negative relation is more pronounced for firms with weaker corporate governance mechanisms, where shareholders lack of effective tools to protect themselves against pressures from stakeholders, and a shift of relative power towards stakeholders is more likely to occur. Our paper provides a specific channel through which mandatory CSR disclosure benefits stakeholders at the expense of shareholders.

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“…Despite significant scholarly efforts to investigate the usefulness of CSR disclosure, the disagreement prevails about whether and how CSR disclosure influences stakeholders' perception (Luo, Wang, Raithel, & Zheng, 2015) and firm value (Baboukardos, 2018). Some argue that disclosure quantity leads to more informed investment decision (Dugar & Nathan, 1995;Ioannou & Serafeim, 2015), whereas others consider quality as the main factor for the impact of CSR disclosure on corporate value (Gao, Dong, Ni, & Fu, 2016). This tension not only exists regarding quality and quantity but also about firm's initiative to whether disclose such information or not (Cahan et al, 2016).…”

mentioning

confidence: 99%

Impact of disclosure and assurance quality of corporate sustainability reports on access to finance

García‐Sánchez

Hussain

Martínez‐Ferrero

et al. 2019

Corp Soc Responsibility Env

146

107

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This paper investigates the impact of corporate social responsibility (CSR) disclosure quantity, quality, and external validation concerning assurance on capital constraints.We examine if these disclosure characteristics matter to the investors in the financial market, then they should be positively evaluated by financial market participants.More specifically, we study the effects of disclosure quantity, quality, and assurance on the access to financial resources for reporting firms. Analysis of data of an international sample for the period of 2007-2016 significantly supports the value relevance idea of CSR disclosure quality. We document that availability of more information about the firm's CSR initiatives eases the financial access. Furthermore, the quality and external assurance of CSR disclosure further strengthen the relationship between disclosure and access to finance. Our paper not only provides support for buying assurance but also argue for better assurance quality.

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Determinants and Economic Consequences of Non-financial Disclosure Quality

Cited by 197 publications

References 73 publications

Finding the Link between CSR Reporting and Corporate Financial Performance: Evidence on Czech and Estonian Listed Companies

Finding the Link between CSR Reporting and Corporate Financial Performance: Evidence on Czech and Estonian Listed Companies

Mandatory corporate social responsibility disclosure and dividend payouts: evidence from a quasi‐natural experiment

Impact of disclosure and assurance quality of corporate sustainability reports on access to finance

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