Do Socially Responsible Managers Forecast Sales More Accurately?

Journal of Financial Reporting and Accounting (https://doi.org/10.1108/JFRA-07-2020-0206)

36 Pages Posted: 25 May 2018 Last revised: 2 Oct 2021

See all articles by Panagiotis I. Chronopoulos

Panagiotis I. Chronopoulos

Athens University of Economics and Business - Department of Accounting and Finance

Date Written: November 23, 2019

Abstract

We examine whether corporate social responsibility is related to management sales forecast accuracy. More specifically, we question whether firms that present a high social responsibility level commit lower sales forecast errors, as compared to firms that do not meet analogous levels of social responsibility. Differentiating from prior research, we control for the level of managerial ability (MAscore).

We find that socially responsible firms:

(1) commit forecast errors of lower magnitude, and

(2) sales forecast accuracy is positively related to the level of corporate social responsibility.

Our findings are supportive towards the direction of creating robust growth through CSR strategy, since managers appear to predict sales figures more accurately.

Keywords: Corporate Social Responsibility; Management Forecasts; Managerial Ability

Suggested Citation

Chronopoulos, Panagiotis I., Do Socially Responsible Managers Forecast Sales More Accurately? (November 23, 2019). Journal of Financial Reporting and Accounting (https://doi.org/10.1108/JFRA-07-2020-0206), Available at SSRN: https://ssrn.com/abstract=3178178 or http://dx.doi.org/10.2139/ssrn.3178178

Panagiotis I. Chronopoulos (Contact Author)

Athens University of Economics and Business - Department of Accounting and Finance ( email )

76 Patission Street
GR-104 34 Athens
Greece

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