The IPO corporate social responsibility information disclosure: Does the stock market care?

Huang, Fang‐Liang; Xiang, Lijin; Liu, Rongbing; Su, Shuling; Qiu, Hao

doi:10.1111/acfi.12534

Cited by 12 publications

(17 citation statements)

References 73 publications

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“…Given that IPO firms present a higher degree of information asymmetry, certain characteristics of the board, reputable auditors, or underwriters can influence these IPO firms to disclose more CSR information in order to reduce information asymmetry (Arenas‐Parra & Álvarez‐Otero, 2020). Furthermore, firms that disclose their CSR performance gain higher post‐IPO returns (Huang et al, 2019). Hence, we suggest that IPO‐preparing firms have their CSR reports assured because the number of assurance service providers and a high level of assurance can lead to better operating performance, which sends a strong signal to the stock market.…”

Section: Discussionmentioning

confidence: 99%

The impact of voluntary assurance of CSR reports on firms' operating performance: Evidence from Taiwan

Kuo

Lee

Lee³

2022

Manage Decis Econ

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This paper investigates the impact of the voluntary assurance of corporate social responsibility (CSR) reports on firms' operating performance. Using data from listed firms in Taiwan to test three theory‐driven hypotheses, we found that the voluntary assurance of CSR reports may not lead to firms' positive performance. However, both voluntary dual‐assurance and high confidence levels of assurance for CSR reports can positively influence such performance. We offer incremental insights into expanding the CSR literature by elaborating the importance of voluntary assurance. We suggest that firms voluntarily assure their CSR reports with a higher confidence level to further improve their performance.

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Section: Discussionmentioning

confidence: 99%

The impact of voluntary assurance of CSR reports on firms' operating performance: Evidence from Taiwan

Kuo

Lee

Lee³

2022

Manage Decis Econ

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“…Some scholars have examined the relationship between environmental disclosures in IPO prospectuses and post-IPO stock market outcomes (Huang et al, 2019;Pencle & M al aescu, 2016). For instance, Pencle and M al aescu (2016) showed an insignificant relationship between the quantity of environmental reporting and IPO underpricing.…”

Section: Environmental Disclosure Tone and Ipo Underpricingmentioning

confidence: 99%

“…However, studies on the relationship between environmental disclosures and post-IPO returns have produced equivocal results (Huang et al, 2019;Pencle & M al aescu, 2016). These mixed findings suggest that the impact of environmental disclosures on IPO underpricing requires further attention to shed light on the nuances of such disclosures.…”

Section: Introductionmentioning

confidence: 99%

The impact of environmental disclosure on initial public offering underpricing: Sustainable development in Singapore

Kang

Lam

2022

Corp Soc Responsibility Env

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This study applies signaling theory to examine the impact of environmental disclosures on equity underpricing at initial public offerings (IPO) when private firms list on stock exchanges. Firms often under‐price their shares to attract investors as IPOs have high information asymmetry between firms and investors. Using a linguistic technique on environmental disclosures in prospectuses from 2009 to 2019 in the Singapore Exchange, we find that disclosures with a positive tone correlate with lower underpricing, but only if these disclosures are authentic. This finding is robust to different model specifications and measurements. We provide new evidence that linguistic features, that is, tone and authenticity, interact to influence a key IPO outcome. The results suggest that investors are not easily attracted by positive disclosure tones but are also concerned with the authenticity of such disclosures. This finding informs firms and various stakeholders navigating the nascent and growing wave of sustainability reporting in Singapore.

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“…Accordingly, how well a firm does in social activities has become an important component of firm performance evaluation, as a supplement to traditional financial metrics (Paine, 2002; Wagner, Lutz, & Weitz, 2009; Wang & Choi, 2013). For example, evidence shows that investors' evaluation of IPO firms is not only determined by the firms’ financial prospects but also significantly influenced by their social performances (Huang, Xiang, Liu, Su, & Qiu, 2019). In addition, a growing number of shareholders show preferences for firms with good social performance (Barnett & Salomon, 2006; Graves & Waddock, 1994).…”

Section: Introductionmentioning

confidence: 99%

Social Performance Feedback and Firm Communication Strategy

Xiang

Yang

2021

Journal of Management

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Although corporate social performance has become an important measure of firm performance, there is little understanding about how firms respond to social performance feedback and how impression management may function as an important firm response to the feedback. Building upon and extending the literature on the behavioral theory of the firm and the strategic use of language, we examine how discrepancies between firms’ social performance and their aspiration levels affect how firms use visual expressions in their CSR reports. In addition, we argue that the relationship between social performance discrepancies and the use of visual expressions in CSR reports is moderated by the extent to which firms conduct socially responsible activities to enhance legitimacy (reflected in the level of state ownership) and the extent to which firms engage in social activities to improve financial performance (reflected in foreign exposure). Using a sample of Chinese firms issuing CSR reports from 2009 to 2017, our empirical results provide strong support for these arguments.

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The IPO corporate social responsibility information disclosure: Does the stock market care?

Cited by 12 publications

References 73 publications

The impact of voluntary assurance of CSR reports on firms' operating performance: Evidence from Taiwan

The impact of voluntary assurance of CSR reports on firms' operating performance: Evidence from Taiwan

The impact of environmental disclosure on initial public offering underpricing: Sustainable development in Singapore

Social Performance Feedback and Firm Communication Strategy

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