What Drives Investor Response to CSR Performance Reports?

Guiral, Andrés; Moon, Doocheol; Tan, How Teck; Yao, Yu

doi:10.1111/1911-3846.12521

Cited by 57 publications

(92 citation statements)

References 49 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“… 69 Broadly consistent with the archival evidence based on the SASB definition of materiality, Guiral et al ( 2020 ) conduct an experiment and find that investors who explicitly consider CSR performance are able to price material CSR disclosures. Mispricing only occurs for immaterial CSR disclosures when subjects (i.e., MBA students taking the role of investors) are not prompted to explicitly assess CSR issues.…”

mentioning

confidence: 80%

Mandatory CSR and sustainability reporting: economic analysis and literature review

2021

View full text Add to dashboard Cite

This study collates potential economic effects of mandated disclosure and reporting standards for corporate social responsibility (CSR) and sustainability topics. We first outline key features of CSR reporting. Next, we draw on relevant academic literatures in accounting, finance, economics, and management to discuss and evaluate the potential economic consequences of a requirement for CSR and sustainability reporting for U.S. firms, including effects in capital markets, on stakeholders other than investors, and on firm behavior. We also discuss issues related to the implementation and enforcement of CSR and sustainability reporting standards as well as two approaches to sustainability reporting that differ in their overarching goals and materiality standards. Our analysis yields a number of insights that are relevant for the current debate on mandatory CSR and sustainability reporting. It also points scholars to avenues for future research.

show abstract

mentioning

confidence: 80%

Mandatory CSR and sustainability reporting: economic analysis and literature review

2021

View full text Add to dashboard Cite

show abstract

“…Empirical studies also support these theories. Researchers find that CSR initiatives help to create shareholder value (Guiral et al , 2020); enhance reputational capital (Elfenbein et al , 2012); and earn positive responses from customers (Green and Peloza, 2011), employees (Edmans, 2012), investors (Chen and Gavious, 2015) and security analysts (Ioannou and Serafeim, 2015). These studies show that firms voluntarily engage in CSR to distinguish themselves from their competitors and build a competitive advantage.…”

Section: Prior Literature and Hypotheses Developmentmentioning

confidence: 99%

Forcing responsibility? Examining earnings management induced by mandatory corporate social responsibility: evidence from India

Bansal

Kumar

2021

RAF

View full text Add to dashboard Cite

Purpose This study aims to investigate the impact of mandatory corporate social responsibility (CSR) spending legislation on the earnings management strategies of firms. Design/methodology/approach The authors use panel data regression models to analyze the data for this study. This study covers the post-legislation period, which spans over five years from the financial year ending March 2015 to the financial year ending March 2019. Findings The results show that firms manipulate accounting measures to avoid breaching the cut-off criteria for mandatory CSR. In particular, the results show that firms operating around the operating revenue threshold misclassify operating revenue as non-operating revenue. In contrast, firms operating around the net worth and net profit thresholds do downward real and accrual earnings management. These results are consistent with several robustness measures. Originality/value To the best of the authors’ knowledge, this is the first study that examines the impact of mandatory CSR spending on earnings management.

show abstract

“…Recent studies indicate that research on CSR disclosure should also consider the extent to which a firm's CSR disclosure is aligned with its CSR performance (Cheng et al, 2015;De Villiers et al, 2019;Guiral et al, 2019). Firms with aligned CSR disclosure disclose more (less) CSR information if they have better (worse) CSR performance.…”

Section: Sample Splitsmentioning

confidence: 99%

The information content of corporate social responsibility disclosure in Europe: an institutional perspective

Mittelbach‐Hörmanseder¹,

Hummel

Rammerstorfer³

2020

European Accounting Review

View full text Add to dashboard Cite

This study examines how firm value (measured via stock prices) is related to corporate social responsibility (CSR) disclosure and how the institutional environment influences this relationship. To test our hypotheses, we apply textual analysis to our data on firms listed in the STOXX Europe 600 for the period 2008-2016. Our investigation of topic-specific CSR disclosure indicates that when firms shifted from voluntary to mandatory reporting, following the announcement of Directive 2014/95/EU, the association between their share price and CSR disclosure became significantly negative. For the period before the announcement, this relationship is either positive or statistically insignificant. We also show that the institutional environment can impact this relationship in four distinct ways: the level of CSR awareness, the level of employee protection, the degree of enforcement and the strength of the legal environment. We find that the first two have a negative impact on the incremental value relevance of specific CSR disclosure, whereas the last two have a positive impact. Lastly, our results also indicate that the magnitude of (a) the relationship between a firm's CSR disclosure and its value and (b) the impact that the firm's institutional environment has on this relationship depends on the specific CSR topics.

show abstract

What Drives Investor Response to CSR Performance Reports?

Cited by 57 publications

References 49 publications

Mandatory CSR and sustainability reporting: economic analysis and literature review

Mandatory CSR and sustainability reporting: economic analysis and literature review

Forcing responsibility? Examining earnings management induced by mandatory corporate social responsibility: evidence from India

The information content of corporate social responsibility disclosure in Europe: an institutional perspective

Contact Info

Product

Resources

About