CSR Performance, Financial Reporting, and Investors’ Perception on Financial Reporting
This study examines whether socially responsible firms behave differently from other firms in their financial reporting. Specifically, we question whether firms that are better in their corporate social responsibility (CSR) performance also behave in a responsible manner to maintain their financial...
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doaj-410fad79b32f470a9e51a4c19590d4992020-11-24T22:49:13ZengMDPI AGSustainability2071-10502018-02-0110252210.3390/su10020522su10020522CSR Performance, Financial Reporting, and Investors’ Perception on Financial ReportingLukas Timbate0Cheong Kyu Park1Department of Business Administration at Ajou University, Suwon 16499, KoreaDepartment of Business Administration at Ajou University, Suwon 16499, KoreaThis study examines whether socially responsible firms behave differently from other firms in their financial reporting. Specifically, we question whether firms that are better in their corporate social responsibility (CSR) performance also behave in a responsible manner to maintain their financial reporting quality and whether the market rewards such responsible behaviors. Using data from S&P 500 US companies, we find that socially responsible firms are less likely to manage their earnings. However, we fail to find significant relationships between CSR and investors’ perceptions on earnings, measured by stock returns and earnings response coefficient. We interpret the results as investors not fully reflecting the benefits from CSR performance. Our findings are consistent with the notion that CSR activities are motivated by managers’ ethical incentives to serve the interests of stakeholders.http://www.mdpi.com/2071-1050/10/2/522corporate social responsibilityfinancial reporting qualityinvestors’ perception on financial reporting |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Lukas Timbate Cheong Kyu Park |
spellingShingle |
Lukas Timbate Cheong Kyu Park CSR Performance, Financial Reporting, and Investors’ Perception on Financial Reporting Sustainability corporate social responsibility financial reporting quality investors’ perception on financial reporting |
author_facet |
Lukas Timbate Cheong Kyu Park |
author_sort |
Lukas Timbate |
title |
CSR Performance, Financial Reporting, and Investors’ Perception on Financial Reporting |
title_short |
CSR Performance, Financial Reporting, and Investors’ Perception on Financial Reporting |
title_full |
CSR Performance, Financial Reporting, and Investors’ Perception on Financial Reporting |
title_fullStr |
CSR Performance, Financial Reporting, and Investors’ Perception on Financial Reporting |
title_full_unstemmed |
CSR Performance, Financial Reporting, and Investors’ Perception on Financial Reporting |
title_sort |
csr performance, financial reporting, and investors’ perception on financial reporting |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2018-02-01 |
description |
This study examines whether socially responsible firms behave differently from other firms in their financial reporting. Specifically, we question whether firms that are better in their corporate social responsibility (CSR) performance also behave in a responsible manner to maintain their financial reporting quality and whether the market rewards such responsible behaviors. Using data from S&P 500 US companies, we find that socially responsible firms are less likely to manage their earnings. However, we fail to find significant relationships between CSR and investors’ perceptions on earnings, measured by stock returns and earnings response coefficient. We interpret the results as investors not fully reflecting the benefits from CSR performance. Our findings are consistent with the notion that CSR activities are motivated by managers’ ethical incentives to serve the interests of stakeholders. |
topic |
corporate social responsibility financial reporting quality investors’ perception on financial reporting |
url |
http://www.mdpi.com/2071-1050/10/2/522 |
work_keys_str_mv |
AT lukastimbate csrperformancefinancialreportingandinvestorsperceptiononfinancialreporting AT cheongkyupark csrperformancefinancialreportingandinvestorsperceptiononfinancialreporting |
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