While many extant studies focus on the relation between financial performance and corporate social responsibility (CSR) reporting, less attention has been given to the shifting role of financial performance in CSR reporting in a changing institutional environment. The objective of this study is to investigate whether, why, and how institutional transitions affect the role of financial performance in CSR reporting. Using samples of A-share listed companies from 2008 to 2015, we separately examine the impacts of institutional transitions on firms' propensity to issue standalone CSR reports, the quality of voluntary CSR reports, and the quality of mandatory CSR reports. We find that financial performance buffers against external pressures brought by institutional transitions rather than only serving as a slack resource. By highlighting the buffer role of financial performance, our study provides deeper insights on the relation between financial performance and CSR reporting and contributes to extant institutional research on CSR reporting.
Although traditional studies concerning the diffusion effect of board interlocks stress the influence of mimetic pressures, extant studies increasingly emphasize board interlocks' communication role. From the perspective of corporate social responsibility (CSR) reporting, this paper seeks to investigate the validity of the two views by introducing market development as a moderating variable. Based on samples of Chinese listed companies between 2008 and 2015, we find that board interlocks positively affect firms' CSR reporting. Consistent with the communication mechanism view, the impact of board interlocks on CSR reporting is relatively weak in developed regions. With this study, we contribute to the literature concerning the diffusion effect of board interlocks and the institutional literature related to CSR reporting. K E Y W O R D S board interlocks, corporate social responsibility (CSR) reporting, diffusion effect, market development
Purpose The purpose of the paper is to examine the impact of investor sentiment on managers’ decisions to provide CSR disclosures. The core issue focuses on whether, why and how managers adjust their approach to CSR disclosure to cater to the investor sentiment. Design/methodology/approach On the basis of 13,488 observations of A-share listed companies, the authors examine the impacts of investor sentiment on CSR disclosure, which is measured separately by the propensity to issue a standalone CSR report and the quality of CSR reports. Furthermore, the authors examine the moderating role of institutional factors in China. Findings The authors find that during low-sentiment periods, managers are more likely to issue a standalone CSR report and the quality of CSR reports is higher, and vice versa. Additionally, the authors find that the negative correlations between CSR disclosure and investor sentiment are stronger in state-owned enterprises. Research limitations/implications First, the measurement of investor sentiment reflects only a part of characteristics of investor sentiment. Second, the authors pay less attention to the specific items of a CSR report. Originality/value The study contributes to the literature on CSR disclosure and investor sentiment by combining the two fields together. Furthermore, the study deepens the understanding of the institutional context in China and contributes to research on the predictors of CSR disclosure.
As there are many studies on the predictors of corporate social responsibility (CSR) reporting, the influences of foreign direct investments (FDIs) knowledge spillovers (KSs) on CSR reporting in developing countries remain unclear. This paper introduces the passive‐learning KSs concept to explain whether, why, and how domestic firms learn CSR knowledge from their foreign counterparts. First, we investigate the relationship between foreign ownership and the quality of CSR reporting (CSRQ). Second, we test the moderating effect of three types of direct institutional pressures: the green development policy, the mandatory CSR reporting requirement, and CSR regulations issued by the State‐owned Assets Supervision and Administration Commission. Third, we examine the moderating effect of board interlocks to explore the indirect impacts of institutional pressures. We run regressions on a sample of Chinese A‐share listed companies and the hypotheses are generally supported. This paper contributes to the literature on CSR reporting and FDIs KSs by adopting the passive‐learning KSs theory to explain CSR KSs in developing countries.
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