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Asymmetric Response: Explaining Corporate Social Disclosure by Multi-National Firms in Environmentally Sensitive Industries

University of York Management School Working Paper No. 42

28 Pages Posted: 7 Nov 2010  

Steve Toms

University of Leeds - Leeds University Business School (LUBS); University of Leeds - Division of Accounting and Finance

John Hasseldine

Nottingham University Business School

Date Written: July 5, 2008

Abstract

[enter Abstract Body]The paper examines the determinants of corporate social disclosure (CSD) using a sample drawn from environmentally sensitive industries. It extends the traditional literature in two respects. First, it is international in scope, examining the accounting disclosure responses of multi-national companies to the pressures implied by the nature and scope of their operations. Second, variables measuring political risk and social development are developed so that these pressures can be measured, thereby introducing new dimensions to the literature. In common with previous studies, financial risk, size and other control variables are included. The relationships are tested econometrically utilising regression techniques not previously applied in the CSD literature but nonetheless more generally appropriate when using count dependent variables. Our results suggest that managers feel an unequal sense of responsibility to different constituencies and their disclosure priorities are determined by stock market accountability, lobbying power of their domestic audience and the political risk of their activities rather than the impact of their activities in countries of operation.

Keywords: Corporate Social Disclosure, Oil Industry, Financial Reporting

JEL Classification: D82, L71, M41

Suggested Citation

Toms, Steve and Hasseldine, John, Asymmetric Response: Explaining Corporate Social Disclosure by Multi-National Firms in Environmentally Sensitive Industries (July 5, 2008). University of York Management School Working Paper No. 42. Available at SSRN: https://ssrn.com/abstract=1703662 or http://dx.doi.org/10.2139/ssrn.1703662

Steve Toms (Contact Author)

University of Leeds - Leeds University Business School (LUBS) ( email )

Leeds LS2 9JT
United Kingdom

University of Leeds - Division of Accounting and Finance ( email )

Leeds LS2 9JT
United Kingdom

John Hasseldine

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom
+44 (0) 115 9515279 (Phone)

HOME PAGE: http://www.nottingham.ac.uk/business/LIZJH1.htm

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