The impact of introducing new regulations on the quality of CSR reporting: Evidence from the UK
Research output: Contribution to journal › Article › peer-review
Electronic versions
Documents
- Accepted_The_impact_of_introducing_new_regulations_on_the_quality_of_CSR_reporting
Accepted author manuscript, 709 KB, PDF document
Licence: CC BY-NC-ND Show licence
DOI
This study examines the adoption of mandatory corporate social responsibility (CSR) regulation in the United Kingdom (UK). Specifically, we investigate whether adopting new CSR regulations impacts the quality of firms’ CSR reporting and explore whether that quality depends on a firms’ characteristics. Our empirical results suggest that the UK’s mandatory CSR reporting regulation significantly enhances CSR reporting quality. We further find that firms’ characteristics, particularly corporate governance and firm size, improve mandatory CSR reporting quality. Our results are robust to the use of an alternative proxy of CSR quality assessment and testing for endogeneity. These findings suggest that committing to CSR can substantially benefit stakeholders, who will be better informed regarding the firms’ CSR performance through improved reporting quality. This factor can influence investors’ beliefs and market valuations, which may subsequently guide firms’ investment decisions.
Original language | English |
---|---|
Article number | 100444 |
Journal | Journal of International Accounting, Auditing and Taxation |
Volume | 46 |
Early online date | 24 Dec 2021 |
DOIs | |
Publication status | Published - 1 Mar 2022 |
Externally published | Yes |
Total downloads
No data available