Disclosure for whom? Government involvement, CSR disclosure and firm value

Xu, Shen; Xia, Chen; Li, Antai; Xia, Xinping

doi:10.1016/j.ememar.2020.100717

Cited by 37 publications

(32 citation statements)

References 55 publications

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“…The incentives of large shareholders to use their controlling position are prone to extracting personal benefit to the detriment of minority shareholding which results in agency problems [80,81]. Large shareholders may be more incentivized to overinvest in CSR activities and report them.…”

Section: Moderating Role Of Shareholdingmentioning

confidence: 99%

CSR Disclosure: Effects of Political Ties, Executive Turnover and Shareholder Equity. Evidence from China

et al. 2021

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The context of China fosters different contextual factors, which influences the quality of corporate social responsibility (CSR) disclosure in comparison to firms across the rest of the world. Political ties at a corporate level are one of these vital factors. This paper studies the influence of firm-level political ties (PT) and executive turnover (ET) on the quality of CSR disclosure in the context of shareholding status of departing executive in Chinese listed A-share firms. Stakeholder and Agency theories are applied to the dissemination of CSR disclosures in Chinese firms whereby we used 20,578 firm-years interpretations of Chinese registered companies between 2012 and 2019. The results foster a negative link between executive turnover and quality of CSR disclosures. In addition, a negative relationship has been found between political ties and the quality of CSR disclosure. The findings disclose that the shareholding status of departing executive moderate the relationship between the impact of political ties and executive turnover on firms quality of CSR disclosure, whilst the effect of executive turnover on the quality of CSR disclosure was found more pronounced for firms whose departing executive held larger shareholding (SH). This study contributed to the literature on the quality of CSR disclosure while recognizing the negative effect of executive turnover on a firm’s quality of CSR disclosure for politically tied firms with a reinforcing moderating role of the shareholding status of departing executive.

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Section: Moderating Role Of Shareholdingmentioning

confidence: 99%

CSR Disclosure: Effects of Political Ties, Executive Turnover and Shareholder Equity. Evidence from China

et al. 2021

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“…Second, our study contributes to insurance effect of CSR (Xu et al, 2020;Lins et al, 2017). The insurance of CSR provides a new angle for CSR research.…”

Section: Introductionmentioning

confidence: 83%

“…Lins et al (2017) finds that high-level CSR firms in developed economy are more likely to survive from financial crisis. Xu et al (2020) find that companies can be saved from negative shocks. However, the insurance effect and its mechanism in emerging economy is still unknown.…”

Section: Introductionmentioning

confidence: 99%

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Mandatory CSR Disclosure and Its Insurance Effect: Evidence From China

Zhu

2020

IJEFI

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China Securities Regulatory Commission (CRSC) requires listed companies to issue CSR report mandatorily from 2008. To examine the effect of mandatory CSR disclosure, we adopt the PSM-DID introduced by the mandatory requirements. We find that mandatory disclosure reduces stock return and increases stock volatility. We further investigate the insurance effect of CSR. After the requirement changes, firms are more regulates its behavior by reducing violation cost in the stock market and increasing environmental protection expenditure, especially in State-Owned Enterprises. It indicates that Insurance Effect of CSR can serve a good role in building a social and environmentally friendly society despite mandatory CSR disclosure hampers its financial performance.

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“…CVs represents the control variables. Following previous studies [63,65,80], we took the firm-, industry-, and market-level indicators as control variables. Firm-level variables include return on assets (ROA), firm size (SIZE), firm age (AGE), state-owned shares (STATE), and ownership concentration of the largest shareholder (BIG1).…”

Section: Modelingmentioning

confidence: 99%

Corporate Social Responsibility and Firm Value: The Moderating Effects of Financial Flexibility and R&D Investment

Guo

Hou

2020

Sustainability

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Despite the significance of corporate social responsibility (CSR), there remains an extensive debate regarding its implications for firm value. This study examines the moderating effects of financial flexibility and R&D investment on CSR and firm value. Using multiple archival data of 2311 companies from 2010 to 2016, our study finds that CSR is a “double-edged sword” for firm value; specifically, CSR significantly increases systematic risk but reduces firms’ idiosyncratic risk as well as the Tobin’s q. Besides, the results indicate that financial flexibility and R&D investment significantly reduce the negative correlation between CSR and Tobin’s q, the difference between the two being that financial flexibility can reduce the positive relationship between CSR and system risk, while R&D spending can reduce the negative relationship between CSR and idiosyncratic risk. By adding new aspects to the discussion about how CSR affects firm value, the results speak to both theorists and practitioners.

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Disclosure for whom? Government involvement, CSR disclosure and firm value

Cited by 37 publications

References 55 publications

CSR Disclosure: Effects of Political Ties, Executive Turnover and Shareholder Equity. Evidence from China

CSR Disclosure: Effects of Political Ties, Executive Turnover and Shareholder Equity. Evidence from China

Mandatory CSR Disclosure and Its Insurance Effect: Evidence From China

Corporate Social Responsibility and Firm Value: The Moderating Effects of Financial Flexibility and R&D Investment

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