The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China

Chen, Tai-Yuan; Hung, Mingyi; Wang, Yongxiang

doi:10.1016/j.jacceco.2017.11.009

Cited by 935 publications

(804 citation statements)

References 26 publications

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“…The overall results show that there are four common variables that are positively significant in all industries: member of industrial association, company age, company size and profitability, which is consistent with the existing literature (see Chen et al, 2018;Oh et al, 2011;Kang, 2013;Cai et al, 2011;Gomez-Mejia et al, 2003). The variable management role approaches moderate significance in mining and utility industry, with operating leverage approaching moderate significance in the chemical industry, and significant correlation can be observed in utility industry.…”

Section: Discussion and Findingssupporting

confidence: 87%

“…This suggests that the management of Chinese listed mining, utility and chemical companies were not motivated by the companies being stated-owned. As China develops, there has been increasing emergence of private sectors ownership in the last few decades, and whether a company is state-owned is no longer a strong motivation for the management to voluntarily disclose environmental information (Chen et al, 2018;Taylor & Shan, 2007). In order to increase the extent of environmental disclosure in China, the government need to have a set of detailed and adequate environmental reporting guidelines with precise instructions as a part of mandatory requirement.Company age was also found to have weak significant relationship across industries.…”

Section: Discussionmentioning

confidence: 99%

“…The first stream includes studies on developing the measures and the instruments of corporate social responsibility, involving mainly the scale of CSR based on stakeholders' perception or from institutional demand (Lu & Abeysekera, 2017;Chow & Chen, 2012;Zhang et al, 2014;Ong et al, 2016). Another stream focuses on the drivers of CSR, including testing the relevance of CSR with firm performance (Zhu & Zhang, 2015;Chen et al, 2018), corporate governance (Jo & Harjoto, 2012;Flammer et al, 2017;Hubbard et al, 2017;Harjoto & Jo, 2011), or ownership structures (Khan et al, 2013;Li & Zhang 2010;Ghazali, 2007).…”

Section: Empirical Studies In Corporate Social Responsibility Disclosmentioning

confidence: 99%

“…However, in China, there are limited legislative accounting standards and legislative requirements for reporting corporate environmental and social information. Although a subset of listed firms reporting social responsibility by mandatory requirement (Chen et al, 2018), vast majority firms are in the absence of mandatory environmental and social reporting requirements. 2008, the Shenzhen andShanghai Stock Exchange (SZSE andSSE) issued the 'Listed Corporate Social Responsibility (CSR) Guidelines', which have been formulated in accordance with the company law and securities law.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Determinants of Corporate Environmental and Social Disclosures in China: A Comparative Study within High-profile Industries

Zhang

Djajadikerta

Trireksani

2018

AJFA

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This study examines the extent of environmental and social disclosures in annual reports made by Chinese mining, utility and chemical industries. It also investigates the key drivers of the companies' environmental and social disclosures (CESD), thereby determining the motivations of the sample organisations towards corporate environmental and social responsibility. The study adopted dichotomous index to measure the extent of CESD among the three industries in their annual reports. Additionally, Ordinary Least Square was adopted to examine the determinants of CESD. By drawing on legitimacy theory, the results depict positive associations between the extent of CESD and firm size, profitability, and firm age. Engagement from industry association showed strong significance in environmental disclosure, whereas leverage was significant in social disclosures. Government ownership was found insignificant in the analysis. The study contributes with direct evidence to the extent of environmental disclosure and social disclosure made by three high-profile industries based on G3. The results showed that overall there is no significant difference between the extents of CESD of the three industries, indicating that high-profile industries behave similarly in terms of the content of information in disclosure. This study has also practical implications particularly for the regulatory body and the industry association when developing regulations and guidelines on environmental and social reports.

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Section: Discussion and Findingssupporting

confidence: 87%

Section: Discussionmentioning

confidence: 99%

Section: Empirical Studies In Corporate Social Responsibility Disclosmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Determinants of Corporate Environmental and Social Disclosures in China: A Comparative Study within High-profile Industries

Zhang

Djajadikerta

Trireksani

2018

AJFA

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“…For example, Chen, Hung, and Wang (2018) find that mainland firms experience a decrease in profitability after the mandatory disclosure of CSR. However, our paper differs from theirs in that we are interested in CSR performance rather than CSR disclosure.…”

Section: Determinants Of Csrmentioning

confidence: 99%

Cross-listing and CSR performance: evidence from AH shares

Shi

Zhang

Zhou

2018

Front. Bus. Res. China

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This study investigates the association between corporate social responsibility (CSR) performance and cross-listing. In a clean setting where a change in CSR performance can be attributed to the cross-listing, we find a statistically significant and economically meaningful increase in CSR performance for the cross-listed firms. Moreover, such an increase comes mostly in technical CSR, which targets the firms' primary stakeholders. We also find that the positive association between cross-listing and CSR improvements is more pronounced for firms with weak corporate governance. The results hold under a variety of different robustness checks.

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Sustainability reporting for boosting national commitment and overcoming challenges: A hierarchical model

Paridhi,

Ritika

2024

Bus Strat Dev

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Sustainability reporting (SR) has emerged as a critical mechanism for organizations and nations to communicate their performance in terms of environmental, social, and governance (ESG). The present study investigates the challenges that prevent SR from being useful for system transparency and accountability. It identifies formidable barriers such as intentions, knowledge gaps, resource constraints, and the intricate nature of measurement metrics which necessitating a global collaborative efforts to improve SR's adaptability and acceptance within diverse systems. In addition, this pioneering research examines the factors that influence SR adoption and commitment at the national level. In the study, total interpretive structural modelling (TISM) is used to investigate the hierarchical relationship between factors while MICMAC analysis is administered to identify driver‐dependent connections. It reveals a multi‐layered structure in which macroeconomic factors such as political stability and resource availability drive regulatory effectiveness, operational factors such as administrative efficiency and awareness synergise for progress, and performance factors provide comprehensive insights into SR maturity at national level. The findings contribute significantly to the refinement of theoretical frameworks while emphasizing the importance of SR in advancing the 2030 Agenda for Sustainable Development. It emphasizes on political will, resource allocation, and tailored regulatory frameworks for comprehensive reporting of sustainability. This study provides practical insights for managers, policymakers, and businesses navigating sustainability reporting. It identifies drivers of national SR commitment and guides corporate practices towards sustainable development goals. Understanding these issues strengthens risk management and governance, while advanced measurement tools facilitate assessment and communication. Overall, it empowers stakeholders to elevate their engagement in enhancing sustainability practices, refining governance structures, and informing policy formulation.

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The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China

Cited by 935 publications

References 26 publications

Determinants of Corporate Environmental and Social Disclosures in China: A Comparative Study within High-profile Industries

Determinants of Corporate Environmental and Social Disclosures in China: A Comparative Study within High-profile Industries

Cross-listing and CSR performance: evidence from AH shares

Sustainability reporting for boosting national commitment and overcoming challenges: A hierarchical model

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