The Effect of Mandated CSR Disclosure on the Pollution Levels of Publicly-Traded Chinese Firms

Gramlich, Jeffrey; Huang, Li

doi:10.2139/ssrn.2906533

Cited by 6 publications

(3 citation statements)

References 48 publications

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“…An increasing number of recent studies pay attention to the real economic impact of voluntary CSR disclosure. The previous literature indicates that voluntary CSR disclosure has the merits of reducing information asymmetry and cost of capital (Dhaliwal et al ., , , ), while mandatory CSR disclosure has implications for mine‐safety records, environmental impacts, and CSR expenditure (Christensen et al ., ; Gramlich and Huang, ; Fiechter et al ., ). Our paper is closely related with two recent studies focusing on the economic impacts of the mandatory CSR disclosure regulation in China.…”

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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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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“…Notably, their use of macro-level outcomes (i. e., emissions measured at the city level rather than at the firm level) allows Chen et al (2018) to estimate the total effect of the regulation, including spillover effects (i. e., changes in pollution that might result from peer firms in the same city which are themselves not subject to the regulation). Gramlich and Huang (2017) complements these results by providing evidence on the type of firms and activities that give rise to the overall reduction in pollution levels. Using a firm-level outcome (the Trucost environmental impact ratio), the study finds that pollution levels of treated firms go down due to both direct and indirect (i. e., supplychain-related) effects.…”

Section: Environmental Outcomesmentioning

confidence: 75%

Shaping Corporate Actions Through Targeted Transparency Regulation: A Framework and Review of Extant Evidence

Hombach

Sellhorn

2018

Schmalenbach Bus Rev

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This paper discusses targeted transparency regulation by securities regulators: corporate disclosure regulation aimed at nudging firms towards changing their business activities in socially desirable ways. Using Corporate Social Responsibility disclosures and other prominent examples, we first document disclosure regulators' public policy objectives. Based on a framework that develops the causal chain linking a disclosure mandate to the desired corporate action, we review empirical evidence on the effectiveness of targeted transparency implemented via securities regulation. The paper concludes with a discussion of opportunities and challenges for future research in this area.

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“…Several studies find a significant reduction in carbon emissions after CSR reporting regulations. For example, Gramlich and Huang (2017) find a decrease in pollution levels of affected firms relative to control firms after the CSR reporting regulation in China. Also, in China, Chen et al (2018) show that cities most affected by the CSR reporting regulation (i.e.…”

Section: Carbon Emissionsmentioning

confidence: 99%

Consequences of CSR reporting regulations worldwide: a review and research agenda

Haji

Coram

Troshani

2022

AAAJ

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PurposeThis study reviews research that examines economic and behavioural consequences of CSR reporting regulations. Specifically, the authors evaluate the impact of CSR reporting regulations on (1) reporting quality, (2) capital-markets and (3) firm behaviour.Design/methodology/approachThe authors first describe the stated objectives and enforcement level of CSR reporting regulations around the world. Second, the authors review over 130 archival studies in accounting, finance, economics, law and management that examine consequences of the regulations.FindingsThe stated objectives and enforcement of CSR reporting regulations vary considerably across countries. Empirical research finds no significant changes in reporting quality and generally concludes that CSR reporting continues to be ceremonial rather than substantive after the regulations – consistent with corporate legitimation and “greenwashing” views. In contrast, growing evidence shows both positive and negative capital-market and real effects of the regulations. Overall, the findings from this review indicate that, on balance, there remains a significant number of questions on the net effects of CSR reporting regulations.Originality/valueThe authors offer a comprehensive review of the literature examining consequences of CSR reporting regulations. The authors identify apparent tensions in studies assessing different outcomes after the regulations: between symbolic reporting and positive capital-market outcomes; between profitability and CSR; and between CSR and the welfare of non-shareholder groups. Additionally, we highlight differences in the scope and stated objectives of CSR regulations across countries, with the regulations often reflecting socio-economic development and national interests of implementing countries. Collectively, our review indicates that institutional details are crucial when considering the design or consequences of CSR reporting regulations and/or standards.

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The Effect of Mandated CSR Disclosure on the Pollution Levels of Publicly-Traded Chinese Firms

Cited by 6 publications

References 48 publications

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

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

Shaping Corporate Actions Through Targeted Transparency Regulation: A Framework and Review of Extant Evidence

Consequences of CSR reporting regulations worldwide: a review and research agenda

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