Institutional Ownership and Value Relevance of Corporate Social Responsibility Disclosure: Empirical Evidence from China
We examine the relationship between corporate social responsibility (CSR) disclosure and firm value in China. Using a sample of listed companies on the Shanghai Stock Exchange from 2008 to 2012, we find that market value of a firm is higher when a company makes a lower level of CSR disclosure. Other...
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doaj-f0224d8c58eb4996b2f19e84995b4c032020-11-25T02:25:05ZengMDPI AGSustainability2071-10502020-03-01126231110.3390/su12062311su12062311Institutional Ownership and Value Relevance of Corporate Social Responsibility Disclosure: Empirical Evidence from ChinaRamiz ur Rehman0Zahid Riaz1Charles Cullinan2Junrui Zhang3Fanghua Wang4School of Management, Xi’an Polytechnic University, Xi’an 710048, ChinaFaculty of Business Administration, Lahore School of Economics, Lahore 53200, PakistanDepartment of Accounting, Bryant University, Smithfield, RI 02828, USADepartment, School of Management, Jiaotong University, Xi’an 710049, ChinaCollege of Film and Television, Hebei University of Science and Technology, Shijiazhuang 050018, ChinaWe examine the relationship between corporate social responsibility (CSR) disclosure and firm value in China. Using a sample of listed companies on the Shanghai Stock Exchange from 2008 to 2012, we find that market value of a firm is higher when a company makes a lower level of CSR disclosure. Other things being equal, this relationship becomes positive when the CSR disclosure is moderated with the institutional ownership. With regard to the CSR disclosure, we found consistent results with respect to the little evidence that the <i>amount</i> of CSR disclosure is significantly associated with market value among those companies who chose to provide CSR disclosures. Taken together, these results indicate that the decision to disclose or not to disclose CSR information is value relevant to the level of institutional investors. These findings are important as they have made an attempt to resolve the earlier contradictory findings with respect to the relationship between market value and CSR disclosure. Furthermore, it has highlighted the value relevance of CSR disclosure regarding the type of shareholders/institutional investors.https://www.mdpi.com/2071-1050/12/6/2311disclosurecorporate social responsibilityfirm valueinstitutional investorschina |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Ramiz ur Rehman Zahid Riaz Charles Cullinan Junrui Zhang Fanghua Wang |
spellingShingle |
Ramiz ur Rehman Zahid Riaz Charles Cullinan Junrui Zhang Fanghua Wang Institutional Ownership and Value Relevance of Corporate Social Responsibility Disclosure: Empirical Evidence from China Sustainability disclosure corporate social responsibility firm value institutional investors china |
author_facet |
Ramiz ur Rehman Zahid Riaz Charles Cullinan Junrui Zhang Fanghua Wang |
author_sort |
Ramiz ur Rehman |
title |
Institutional Ownership and Value Relevance of Corporate Social Responsibility Disclosure: Empirical Evidence from China |
title_short |
Institutional Ownership and Value Relevance of Corporate Social Responsibility Disclosure: Empirical Evidence from China |
title_full |
Institutional Ownership and Value Relevance of Corporate Social Responsibility Disclosure: Empirical Evidence from China |
title_fullStr |
Institutional Ownership and Value Relevance of Corporate Social Responsibility Disclosure: Empirical Evidence from China |
title_full_unstemmed |
Institutional Ownership and Value Relevance of Corporate Social Responsibility Disclosure: Empirical Evidence from China |
title_sort |
institutional ownership and value relevance of corporate social responsibility disclosure: empirical evidence from china |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2020-03-01 |
description |
We examine the relationship between corporate social responsibility (CSR) disclosure and firm value in China. Using a sample of listed companies on the Shanghai Stock Exchange from 2008 to 2012, we find that market value of a firm is higher when a company makes a lower level of CSR disclosure. Other things being equal, this relationship becomes positive when the CSR disclosure is moderated with the institutional ownership. With regard to the CSR disclosure, we found consistent results with respect to the little evidence that the <i>amount</i> of CSR disclosure is significantly associated with market value among those companies who chose to provide CSR disclosures. Taken together, these results indicate that the decision to disclose or not to disclose CSR information is value relevant to the level of institutional investors. These findings are important as they have made an attempt to resolve the earlier contradictory findings with respect to the relationship between market value and CSR disclosure. Furthermore, it has highlighted the value relevance of CSR disclosure regarding the type of shareholders/institutional investors. |
topic |
disclosure corporate social responsibility firm value institutional investors china |
url |
https://www.mdpi.com/2071-1050/12/6/2311 |
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