Journal article

Are CSR Disclosures Value Relevant? Cross-Country Evidence

Steven F Cahan, Charl De Villiers, Debra C Jeter, Vic Naiker, Chris J Van Staden

EUROPEAN ACCOUNTING REVIEW | ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD | Published : 2016

Abstract

Abstract: Using proprietary data that rate corporate social responsibility (CSR) disclosures of firms in 21 countries, this study examines how the strength of nation-level institutions affects the extent of CSR disclosures. We then examine the valuation implications of CSR disclosures and consider how the relation between CSR disclosures and firm value varies across countries. In contrast to prior studies, we separate CSR disclosures into an expected and unexpected portion where the unexpected portion is a proxy for the incremental information contained in CSR disclosures. We observe a positive relation between unexpected CSR disclosure and firm value measured by Tobin's Q. We also find that..

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University of Melbourne Researchers