Details

Autor(en) / Beteiligte

• Chen, Yi-Chun
• Hung, Mingyi
• Wang, Yongxiang

Titel

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

Ist Teil von

• Journal of accounting & economics, 2018-02, Vol.65 (1), p.169-190

Ort / Verlag

Elsevier B.V

Erscheinungsjahr

2018

Link zum Volltext

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• 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.