The impact of workforce environment on CSR audit report lag: the moderating role of media coverage

Abstract

Purpose

The purpose of this study is to investigate the relationship between the workforce environment and corporate social responsibility (CSR) audit report lag while also developing a comprehensive understanding of the moderating effect of media coverage on this relationship.

Design/methodology/approach

This paper was based on a sample of 151 French nonfinancial companies listed on the CAC All Shares index and covered an eight-year period, from 2014 to 2021. To test the hypotheses, a feasible generalized least squares regression was applied. Moreover, the authors checked the results using an additional analysis and the generalized method of moment model for endogeneity problems.

Findings

Based on a panel data set comprising 960 observations of French firms from the period 2014 to 2021, the results obtained indicate a significant negative relationship between the workforce environment and CSR audit report lag. Additionally, it was found that media exposure moderates the relationship between the workforce environment and CSR audit report lag.

Practical implications

This study contributes to the existing research on workforce environment and CSR audit report lag, potentially providing stakeholders such as employees, employers, regulators and auditors with an environment that shortens the time for issuing CSR audit reports. The findings are also relevant for foreign institutional investors aiming to enhance their investment decisions with more comprehensive information.

Originality/value

The work is innovative as it explores the moderating impact of media exposure on the connection between workforce environment and CSR audit report lag, a topic not extensively studied before. To the best of the authors’ knowledge, no prior empirical studies have examined this relationship within the French context or elsewhere.

Citation

Moalla, M., Bouaziz, D. and Jarboui, A. (2024), "The impact of workforce environment on CSR audit report lag: the moderating role of media coverage", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-09-2023-0574