Corporate Social Responsibility and Financial Reporting Quality

35 Pages Posted: 1 Feb 2022

See all articles by Dmitriy Chulkov

Dmitriy Chulkov

Indiana University Kokomo - School of Business

Xiaoqiong Wang

Indiana University Kokomo

Date Written: November 23, 2021

Abstract

This article examines the relationship between corporate social responsibility (CSR) and financial reporting quality. Our findings show that firms with higher levels of corporate social responsibility are associated with higher accuracy of financial forecasts, fewer earnings surprises, and greater coverage by financial analysts. Empirical results hold after we account for potential endogeneity in this relationship. Additional analyses reveal that firms with lower agency concerns, higher customer awareness, more long-term institutional investors, and fewer financial constraints have a stronger positive relationship between CSR and financial reporting quality. Finally, we document the economic implications of this relationship for firm risk and information disclosure.

Keywords: Corporate Social Responsibility, Financial Reporting Quality, Financial Economics

JEL Classification: G10, G32, M14, M40

Suggested Citation

Chulkov, Dmitriy and Wang, Xiaoqiong, Corporate Social Responsibility and Financial Reporting Quality (November 23, 2021). Available at SSRN: https://ssrn.com/abstract=3970172 or http://dx.doi.org/10.2139/ssrn.3970172

Dmitriy Chulkov (Contact Author)

Indiana University Kokomo - School of Business ( email )

2300 S Washington
P.O. Box 9003
Kokomo, IN 46904-9003
United States

Xiaoqiong Wang

Indiana University Kokomo ( email )

2300 South Washington Street
P.O. Box 9003
Kokomo, IN 46904-9003
United States

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

Paper statistics

Downloads
155
Abstract Views
498
rank
275,996
PlumX Metrics