Corporate social responsibility disclosure: Mediating effects of the economic dimension on firm performance

Abstract

This research aims to determine the effect of corporate social responsibility (CSR) disclosure on the firm performance (FP) of Spanish‐listed companies considering the mediation produced by the economic dimension. Using their sustainability reports, partial least squares structural equation modeling is employed for a content analysis. This study provides evidence on the mediating role of the disclosure of economic dimension practices and the intensity shown in the relationships between social and environmental dimensions and FP, allowing for a deeper understanding of the relationships between the various CSR dimensions. Findings show that the disclosure of social and environmental actions, aligned with appropriate standards in the economic dimension, can lead to an improvement in the FP of the company.

Can Mandatory Disclosure of CSR Information Drive the Transformation of Firms towards High-Quality Development?

“…Similarly, Christensen et al's research underscores that the disclosure of CSR information not only effectively addresses information asymmetry issues but also sheds light on the ethical conduct of corporate executives, thereby mitigating conflicts between firms and stakeholders and fostering the future progress of the organization [16]. Moreover, Escamilla-Solano et al argued that there is a consensus in the academic community on the improvements brought about by the European Directive in terms of the disclosure of CSR actions by companies and the reduction in information asymmetry between the company and its stakeholders [17]. It is worth noting that in developed economies, most CSR information is voluntarily disclosed by firms [18], with managers being inclined to disclose such information for specific strategic reasons.…”

Does the Cultural Dimension Influence the Relationship between Firm Value and Board Gender Diversity in Saudi Arabia, Mediated by ESG Scoring?

“…Due to variations in institutional contexts across countries driven by cultural differences (Post and Byron 2015), the mediating role of the ESG score in the relationship between gender diversity and firm value can be expected to differ based on the specific country and its context. Some scholars argue that appointing women directors to the board has multiple positive effects on firm-related outcomes and values, primarily in terms of improving the ESG score and promoting ethical behavior (Pucheta-Martínez et al 2018;Escamilla-Solano et al 2023). However, other authors suggest that gender diversity does not significantly affect firm-related outcomes, including the ESG score (Ahern and Dittmar 2012;Matsa and Miller 2013).…”