Capital market liberalisation and voluntary corporate social responsibility disclosure: Evidence from a quasi-natural experiment in China

Accounting and Finance, forthcoming. https://doi.org/10.1111/acfi.12988

74 Pages Posted: 31 Aug 2020 Last revised: 26 Jul 2022

See all articles by Lin Liao

Lin Liao

Nanjing Audit Univeristy

Yukun Pan

Southwestern University of Finance and Economics (SWUFE)

Troy Yao

Department of Accounting, Finance and Economics, Griffith Business School, Griffith University

Date Written: July 26, 2022

Abstract

This paper investigates the impact of the Shanghai–Hong Kong Stock Connect (SHSC) scheme on voluntary corporate social responsibility (CSR) disclosure in China. Using a difference-in-differences (DiD) design, we find that companies that participate in the SHSC scheme are more inclined to voluntarily issue CSR reports. This effect is more pronounced for companies that have limited access to international markets and those with weak corporate governance. Additional analyses show that SHSC-connected firms also produce higher quality CSR reports and achieve a better CSR performance. Our findings imply that capital market liberalisation promotes voluntary corporate disclosure for investors.

Keywords: capital market liberalization, SHSC scheme, CSR, China

Suggested Citation

Liao, Lin and Pan, Yukun and Yao, Troy, Capital market liberalisation and voluntary corporate social responsibility disclosure: Evidence from a quasi-natural experiment in China (July 26, 2022). Accounting and Finance, forthcoming. https://doi.org/10.1111/acfi.12988, Available at SSRN: https://ssrn.com/abstract=3676038

Lin Liao (Contact Author)

Nanjing Audit Univeristy ( email )

86 Yushan W Rd
Nanjing, Jiangsu 210017
China

Yukun Pan

Southwestern University of Finance and Economics (SWUFE) ( email )

55 Guanghuacun St,
Chengdu, Sichuan 610074
China

Troy Yao

Department of Accounting, Finance and Economics, Griffith Business School, Griffith University

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
55
Abstract Views
855
Rank
793,837
PlumX Metrics