The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China

被引:1206
作者
Chen, Yi-Chun [1 ]
Hung, Mingyi [1 ]
Wang, Yongxiang [2 ]
机构
[1] Hong Kong Univ Sci & Technol, Kowloon, Hong Kong, Peoples R China
[2] Univ Southern Calif, Los Angeles, CA 90089 USA
关键词
Mandatory CSR disclosure; Firm performance; Social externalities; China; NONFINANCIAL DISCLOSURE; CORPORATE; RESPONSIBILITY; POLLUTION;
D O I
10.1016/j.jacceco.2017.11.009
中图分类号
F8 [财政、金融];
学科分类号
020219 [财政学(含:税收学)];
摘要
We examine how mandatory disclosure of corporate social responsibility (CSR) impacts firm performance and social externalities. Our analysis exploits China's 2008 mandate requiring firms to disclose CSR activities, using a difference-in-differences design. Although the mandate does not require firms to spend on CSR, we find that mandatory CSR reporting firms experience a decrease in profitability subsequent to the mandate. In addition, the cities most impacted by the disclosure mandate experience a decrease in their industrial wastewater and SO2 emission levels. These findings suggest that mandatory CSR disclosure alters firm behavior and generates positive externalities at the expense of shareholders. (C) 2017 The Authors. Published by Elsevier B.V.
引用
收藏
页码:169 / 190
页数:22
相关论文
共 37 条
[1]
[Anonymous], 2007, COST POLLUTION CHINA
[2]
[Anonymous], 2015, WORKING PAPER
[3]
[Anonymous], 2015, Working Paper
[4]
Enjoying the quiet life? Corporate governance and managerial preferences [J].
Bertrand, M ;
Mullainathan, S .
JOURNAL OF POLITICAL ECONOMY, 2003, 111 (05) :1043-1075
[5]
Regulation and capitalization of environmental amenities: Evidence from the toxic release inventory in Massachusetts [J].
Bui, LTM ;
Mayer, CJ .
REVIEW OF ECONOMICS AND STATISTICS, 2003, 85 (03) :693-708
[6]
Profiting from government stakes in a command economy: Evidence from Chinese asset sales [J].
Calomiris, Charles W. ;
Fisman, Raymond ;
Wang, Yongxiang .
JOURNAL OF FINANCIAL ECONOMICS, 2010, 96 (03) :399-412
[7]
Campbell JL, 2007, ACAD MANAGE REV, V32, P946, DOI 10.5465/AMR.2007.25275684
[8]
THE PROBLEM OF SOCIAL COST [J].
COASE, RH .
JOURNAL OF LAW & ECONOMICS, 1960, 3 (OCT) :1-44
[9]
Propensity score-matching methods for nonexperimental causal studies [J].
Dehejia, RH ;
Wahba, S .
REVIEW OF ECONOMICS AND STATISTICS, 2002, 84 (01) :151-161
[10]
Nonfinancial Disclosure and Analyst Forecast Accuracy: International Evidence on Corporate Social Responsibility Disclosure [J].
Dhaliwal, Dan S. ;
Radhakrishnan, Suresh ;
Tsang, Albert ;
Yang, Yong George .
ACCOUNTING REVIEW, 2012, 87 (03) :723-759