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Open Access
Article
Publication date: 20 September 2022

Victor Daniel-Vasconcelos, Maisa de Souza Ribeiro and Vicente Lima Crisóstomo

This study aims to investigate the association between the presence of a corporate social responsibility (CSR) committee and Sustainable Development Goals (SDGs) disclosure

Abstract

Purpose

This study aims to investigate the association between the presence of a corporate social responsibility (CSR) committee and Sustainable Development Goals (SDGs) disclosure, as well as the moderating role of gender diversity in this relation.

Design/methodology/approach

The sample consists of 897 annual observations from 238 firms from Argentina, Brazil, Chile, Colombia, Mexico and Peru for 2018–2020. The data were collected from the Refinitiv database. The proposed model and hypotheses were tested using the feasible generalized least squares estimation technique with heteroscedasticity and panel-specific AR1 autocorrelation.

Findings

The results reveal that the presence of CSR committees positively influences the SDGs. Gender diversity positively moderates the relationship between CSR committees and SDGs. Leverage and firm size also positively impact the SDGs. On the other hand, board size and CEO duality negatively affect SDGs disclosure.

Research limitations/implications

This study extends the scope of stakeholder theory by suggesting that CSR committees and gender diversity enable a better relationship for the firm with its stakeholders.

Practical implications

The findings support policymakers and managers in improving sustainability disclosure. In addition, the results demonstrate the importance of CSR committees and gender diversity to meet the stakeholders' demands.

Social implications

This study demonstrates how firms can improve sustainability issues through gender diversity and CSR committees.

Originality/value

To the best of the authors’ knowledge, this study complements previous literature by being the first to examine the moderating effect of gender diversity on the association between CSR committees and SDGs disclosure in the Latin American context.

Details

RAUSP Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2531-0488

Keywords

Article
Publication date: 13 June 2022

Albert Hasudungan and Risa Bhinekawati

This study aims to investigate the influence of corporate social responsibility (CSR) disclosure on asymmetric information and return on investment (RoI) in Indonesia. The…

Abstract

Purpose

This study aims to investigate the influence of corporate social responsibility (CSR) disclosure on asymmetric information and return on investment (RoI) in Indonesia. The research specifically assesses the effects of CSR disclosure along with other independent variables such as total assets, return on equity, capital expenditures, net profit margin and sales growth on asymmetric information and RoI.

Design/methodology/approach

The study applied a panel econometric regression model to examine and test the effects of CSR disclosure and financial indicators on asymmetric information and RoI. A total of 275 samples were garnered from private and state-owned publicly listed companies selected in the SRI-Kehati index as sustainable firms in Indonesia from 2009 to 2019. Those listed companies in the SRI-Kehati index have market recognition and are able to maintain sustainability practices in their business doings. Asymmetric information was calculated by measuring the spread of market share prices. CSR disclosure was measured with global reporting initiative standards. Other variables did not require calculation.

Findings

This study discerns the significant influence of CSR disclosure on asymmetric information and RoI on the listed firms of the SRI-Kehati Index in Indonesia. To articulate, the more transparent CSR disclosure is, the asymmetric information should be lower. Besides that, more comprehensive CSR disclosure is associated with a better corporate return of investment. In scrutinizing the control variables, this research validates the significant influence of corporate assets and sales revenue on both dependent variables.

Research limitations/implications

This research has some limitations that require further research. First, the research was conducted in Indonesia. However, other Southeast Asian markets may have their own uniqueness. Therefore, further research is needed in other specific Southeast Asian countries. Second, the sampling bounds on the corporation which gained sustainable recognition in SRI-Kehati Index. Future studies can extend more observation by comparing SRI-Kehati index to firms, which are not listed in the index.

Practical implications

This study recommends better capital market monitoring and evaluation to improve the quality of the firms’ reports in both business and social aspects. By investing more in philanthropic and social activities, firms can signal the market credibility to their various external stakeholders on their market adjustment to changing external business environment.

Social implications

As for society, robust CSR disclosures will facilitate investors’ understanding of the conditions before making an investment in public listed companies. At the same time, companies issuing the disclosures are expected by society to perform responsibly, as illuminated in the report. As a result, the CSR disclosures will create a virtuous cycle of sustainability between the company and the society.

Originality/value

First, this research reinforces the global corporate governance concern to urge more corporate disclosures on firm performance in an Indonesian context. Second, this study fills the research gap on the association of CSR disclosure to asymmetric information in Indonesian literature. Third, the findings underpin the integration of social responsibility on the firms’ core business decision-makings to warrant business credibility to all firms’ stakeholders in Indonesia.

Details

Corporate Governance: The International Journal of Business in Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-0701

Keywords

Book part
Publication date: 25 August 2022

Lei Dong, Y. Ken Wang and Kai Du

This study examines whether the source from which nonprofessional investors obtain corporate social responsibility (CSR) disclosure influences their investment-related…

Abstract

This study examines whether the source from which nonprofessional investors obtain corporate social responsibility (CSR) disclosure influences their investment-related judgments and decisions and whether that influence depends on the company's financial performance. In an experiment, we find an asymmetrical effect of information source that varies with financial performance. In particular, information source affects investors' management credibility judgments when the firm announces unfavorable earnings result but not when the announced result is favorable. The mediation analysis reveals that investors' management credibility judgments mediate the joint effect of information source and financial performance on investors' investment decisions. Our findings highlight that the effectiveness of CSR communication can be complicated and that investors are sensitive to other factors that exist in the communication setting, such as the context in which CSR is disclosed (contextual factor) and information source of CSR disclosures (attributional factor).

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-80382-802-2

Keywords

Book part
Publication date: 10 December 2013

Anna Pistoni and Lucrezia Songini

This chapter intends to contribute to the debate on the determinants of corporate social responsibility (CSR) and their impact on performance measurement and communication…

Abstract

Purpose

This chapter intends to contribute to the debate on the determinants of corporate social responsibility (CSR) and their impact on performance measurement and communication systems. It aims at analyzing the relationship between the reasons why firms adopt CSR and the importance given to voluntary CSR disclosure.

Methodology

Two main categories of CSR determinants have been identified: the external ones, coming from the environment outside the firm, and the internal determinants, which are linked to some specific characteristics of the enterprise and to the objectives it pursues.

The analyzed sample consists of 120 large Italian manufacturing and nonmanufacturing enterprises. The research hypotheses concerning the relationship between external and internal determinants of CSR and CSR disclosure were verified using an independent sample t-test, evaluating the equal variances of clusters using the Levene’s test.

Findings

Main results point out that in companies giving importance to CSR disclosure, the internal drivers are more relevant than the external ones in determining the attitude toward CSR. Among the internal determinants, drivers related to company and management values and ethics are quite relevant.

Research limitations

This study is subject to the limitations that generally apply to cross-sectional survey-based research.

Originality/Value of chapter

Our research findings show that legitimacy theory represents the most relevant theory in explaining CSR disclosure practices of Italian large firms, as well as the operational implementation of stakeholder theory, such as stakeholder management. On the contrary, institutional theory only partially explains CSR disclosure, with respect to the pressures coming from financial markets.

Book part
Publication date: 10 December 2013

Simone Domenico Scagnelli, Laura Corazza and Maurizio Cisi

Nowadays, social and environmental reporting is approached in different ways, paths and fields by either large-, small-, or medium-sized enterprises (SMEs). However, as…

Abstract

Purpose

Nowadays, social and environmental reporting is approached in different ways, paths and fields by either large-, small-, or medium-sized enterprises (SMEs). However, as demonstrated by previous scholars, SMEs have been critically discussed because they provide lack of proper sustainability disclosure. The fact that the predominant approach of SMEs toward social responsibility is often “sunken” and not “explicit” can drive the lack of disclosure. Furthermore, unstructured communication practices create difficulties in measuring and reporting the sustainability reporting phenomenon in SMEs. The aim of our study is to shed light on the activity of SMEs’ sustainability reporting and disclosure, specifically, by addressing the variables that influence the choice of the guidelines used to prepare sustainability reports.

Design/methodology/approach

The research has been carried out by using qualitative and quantitative methodologies. The empirical evidence is based on all the Italian companies, mostly SMEs, that were certified in 2011 as having adopted both environmental (i.e., ISO14001 or EMAS) and social (i.e., SA8000) management systems. A multivariate linear regression model has been developed to address the influence of several variables (i.e., financial performance, size, time after achievement of the certifications, group/conglomerate control, etc.) on the guidelines’ choice for preparing sustainability reports.

Findings

Our findings demonstrate that SMEs prefer to use simple guidelines such as those guidelines that are mandatory under management system certifications. However, the sustainability disclosure driven by the adoption of international guidelines may be more complex if the SME is controlled within a group of companies or if a significant amount of time has passed since the certification date. As such, we developed a taxonomy of their different behavioral drivers according to a legitimacy theory approach.

Research limitations

At this stage, our study didn’t focus on the contents’ quality of the disclosure and reporting practices adopted by SMEs, which is obviously a worthwhile and important area for further research. Furthermore, the analysis took into account the impact of a number of easily accessible variables; therefore, it can be extended to investigate the effect on disclosure of other relevant variables (i.e., nature of the board of directors, age, and industrial sector in which the company operates) as well as contexts prevailing in other countries.

Practical implications

The study represents an important contribution for understanding how and why managers might use externally focused disclosure on social and environmental issues to benefit the company’s legitimacy.

Social implications

Our study provides interesting insights for policy makers who require social or environmental certification when calling for tenders or specific EU contracts, in order to put aside the “brand” or “symbol” and really focus on the disclosed practices.

Originality/value

Previous studies have provided only a few evidence about reporting practices and related influencing features of SMEs’ sustainability actions. As such, the study wishes to make a significant contribution to the existing literature on Corporate Social Responsibility (CSR) by providing relevant insights about the factors which influence the guidelines used by SMEs in preparing their sustainability reports.

Details

Accounting and Control for Sustainability
Type: Book
ISBN: 978-1-78052-766-6

Keywords

Open Access
Article
Publication date: 30 March 2022

Stephen Bahadar and Rashid Zaman

Stakeholders' uncertainty about firms' value drives their urge to get information, as well as managerial disclosure choices. In this study, the authors examine whether and…

Abstract

Purpose

Stakeholders' uncertainty about firms' value drives their urge to get information, as well as managerial disclosure choices. In this study, the authors examine whether and how an important source of uncertainty – the recent COVID-19 pandemic's effect on corporate social responsibility (CSR) disclosure – is beyond managerial and stakeholders' control.

Design/methodology/approach

The authors develop a novel construct for daily CSR disclosure by employing computer-aided text analysis (CATA) on the press releases issued by 125 New Zealand Stock Exchange (NZX) listed from 28 February 2020 to 31 December 2020. To capture COVID-19 intensity, the authors use the growth rate of the population-adjusted cumulative sum of confirmed cases in New Zealand on a specific day. To examine the association between the COVID-19 outbreak and companies' CSR disclosure, the authors employed ordinary least squares (OLS) regression by clustering standard error at the firm level.

Findings

The authors find a one standard deviation increase in the COVID-19 outbreak leads to a 28% increase in such disclosures. These results remained robust to a series of sensitivity tests and continue to hold after accounting for potential endogeneity concerns. In the channel analysis, the study demonstrates that the positive relationship between COVID-19 and CSR disclosure is more pronounced in the presence of a well-structured board (i.e. a large, more independent board and with a higher proportion of women on it). In further analysis, the authors find the documented relationship varies over the pandemic's life cycle and is moderated by government stringency response, peer CSR pressure and media coverage.

Originality/value

This paper is the first study that contributes to the scant literature examining the impact of the COVID-19 outbreak on CSR disclosure. Prior research either investigates the relationship of the CSR-stock return during the COVID-19 market crisis or examines the relationship between corporate characteristics including the quality of financial information and the reactions of stock returns during COVID-19. The authors extend such studies by providing empirical evidence that managers respond to COVID-19 by increasing CSR disclosure.

Details

China Accounting and Finance Review, vol. 24 no. 3
Type: Research Article
ISSN: 1029-807X

Keywords

Article
Publication date: 1 February 2022

Xiaoping Liu and Hong He

Drawing on the stakeholder theory and stimulus-organism-response (S-O-R) model, this study examines the relationship between corporate social responsibility (CSR

Abstract

Purpose

Drawing on the stakeholder theory and stimulus-organism-response (S-O-R) model, this study examines the relationship between corporate social responsibility (CSR) disclosures and users' knowledge-sharing behaviors on social media (SM). Two underlying mechanisms are used to explain the relationship between CSR disclosures and knowledge sharing, namely, CSR identification and content richness.

Design/methodology/approach

An empirical analysis based on a negative binomial regression model is conducted using CSR data disclosed on corporate official Microblog in the past year on 30 companies with a high CSR development index in China.

Findings

CSR disclosures are positively related to users' knowledge-sharing behaviors, and this relationship is mediated by CSR identification. Content richness strengthens the positive relationship between CSR disclosures and users' CSR identification. User's retweeting behavior is positively related to commenting behavior.

Originality/value

This is one of the few studies to investigate the relationship between CSR disclosures and knowledge sharing on SM. The findings of this study can help companies formulate and implement effective CSR disclosure strategies to achieve sustainable development of companies.

Details

Marketing Intelligence & Planning, vol. 40 no. 3
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 19 October 2021

Nadia Ben Farhat Toumi, Rim Khemiri and Yosra Fourati Makni

The aim of this paper is to examine the impact of directors' home regions on corporate social responsibility (CSR) disclosure. Specifically, the authors aim to determine…

Abstract

Purpose

The aim of this paper is to examine the impact of directors' home regions on corporate social responsibility (CSR) disclosure. Specifically, the authors aim to determine whether Anglo-American, European, French, other European and other regional directors' presence affects CSR disclosure differently.

Design/methodology/approach

This empirical study uses panel data analysis of all listed firms on the SBF 120 from 2008 to 2019. The environmental, social and governance (ESG) scores are collected from the Bloomberg database and indicate the extent of CSR information disclosure by French companies. The paper is based on a dynamic generalized method of moments panel estimator that makes it possible to control for unobservable heterogeneity and endogeneity and reduces estimation bias.

Findings

The findings of this study provide evidence that home region diversity and the presence of Anglo-Americans on a board are positively and significantly associated with ESG disclosure and environmental disclosure, whereas they are negatively associated with social and governance disclosure. Surprisingly, when directors come from European countries, they disclose less ESG and environmental information. Nevertheless, when only French directors are present, the company tends to divulge all dimensions of CSR. Indeed, while there is a significant positive influence of French directors on ESG disclosure, the presence of other European directors displays negative and statistically significant regression coefficients.

Research limitations/implications

This study may be interesting the French policy makers who can now pay more appropriate attention to directors' nationality or region. Thus, firms should identify the foreign directors who can support their strategy with relevant experience in terms of CSR. This could help to change the opinion of some companies that consider the internalization of the board as a constraint rather than an opportunity. These results will be useful for French-listed companies in setting the criteria for the appointment of foreign directors. It may be interesting to recruit directors across European boundaries.

Practical implications

This paper attempts to provide a better understanding of the effects of the home regions of directors on CSR disclosure in order to enlighten corporate managers whose companies operate in different cultures given that they have to deal with this aspect. In this international business environment, CEOs should increasingly consider the international CSR experience of directors to be a resource. In addition, this study may be of relevance to French market authorities, which constantly encourage firms to diversify the profiles of directors on their boards and recruit more international members.

Originality/value

This study is the first to evince that the disclosure of each CSR disclosure score differs depending on the directors' home regions. Unlike previous studies, the authors focused simultaneously on the resource-based view (RBV) and institutional theory.

Details

Journal of Applied Accounting Research, vol. 23 no. 2
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 29 November 2021

Amal Hamrouni, Mondher Bouattour, Nadia Ben Farhat Toumi and Rim Boussaada

The current study aims to investigate the relation between corporate social responsibility (CSR) and information asymmetry, as well as the moderating effect of board…

Abstract

Purpose

The current study aims to investigate the relation between corporate social responsibility (CSR) and information asymmetry, as well as the moderating effect of board characteristics (gender diversity, size and independence) on this relationship.

Design/methodology/approach

This paper uses a panel data regression analysis with the system generalized method of moments (SGMM) estimator of nonfinancial French firms included in the SBF 120 index. The environmental and social disclosure scores are collected from the Bloomberg database, while financial data are collected from the FactSet database.

Findings

The empirical results demonstrate that environmental disclosure has a positive impact on the level of information asymmetry, while social disclosure has no effect on the information environment. Gender diversity and board independence negatively impact the opacity index, while board size has a positive effect. The presence of women in board composition has a substitution effect on the relationship between environmental disclosure and information asymmetry. There is no moderating effect of board size on the association between CSR disclosure and information asymmetry. However, the proportion of independent female directors and board independence operates as substitutes to social disclosure on reducing information asymmetry.

Research limitations/implications

Although the models include the most common control variables used in the literature, they omit some variables. Second, the results should be interpreted with caution and should not be generalized to the entire stock market since the sample is based on large French companies.

Practical implications

The results of this study may be of interest to managers, investors and French market authorities since France is characterized by highly developed laws and reforms in the area of CSR. In addition, the paper leads to a better understanding of how women on the board, in particular, independent female directors, affect the relationship between CSR disclosure and information asymmetry. This could be of interest to French authorities, which has encouraged the appointment of women through the adoption of the Copé–Zimmermann law.

Originality/value

First, to the best of the authors' knowledge, this is the first study to explore the moderating effect of board characteristics on the relationship between CSR and information asymmetry. Second, unlike previous studies using individual proxies to measure information asymmetry, the authors favor the opacity index of Anderson et al. (2009). They calculate this index by including a fifth individual measure, namely, share price volatility. The opacity index better describes the information environment of companies than individual measures since it reflects the perceptions of investors and analysts together.

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 3 June 2021

Jun Guo, Sungsoo Kim, Yang Yu and Jung Yeun (June) Kim

The study aims to understand the role of accountant in corporate social responsibility (CSR) practice.

Abstract

Purpose

The study aims to understand the role of accountant in corporate social responsibility (CSR) practice.

Design/methodology/approach

In this study, the authors examine whether and how chief financial officer (CFO) accounting expertise and previous work experience influence voluntary CSR disclosure, using textual analysis and natural language processing (NLP) techniques. The authors find that firms' CFOs with accounting expertise disclose more CSR issues in their 10-K reports. Overall, this study provides evidence of the impact of CFOs' professional and personal attributes on voluntary CSR disclosure in corporate annual reports. This study has important implications to investors and policy makers in the context of CSR disclosure regulations in annual reports.

Findings

Overall, this study provides evidence of the impact of CFOs' professional and personal attributes on voluntary CSR disclosure in corporate annual reports. This study has important implications to practitioners and policy makers in the context of CSR disclosure regulations in annual reports.

Research limitations/implications

There is an inherent limitation of textual analysis as the tool tries to read key words from the text.

Practical implications

This finding is useful for policy maker and investors as CSR is known to have impact on the share price.

Originality/value

This paper is the first attempt to find out accountants' role in CSR activities, which has not been examined in the prior literature.

Details

Journal of Applied Accounting Research, vol. 22 no. 5
Type: Research Article
ISSN: 0967-5426

Keywords

1 – 10 of over 4000