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Does positive CSR increase willingness to invest in a company based on performance? The incremental role of combined assurance

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  • Soon‐Yeow Phang
  • Hien Hoang

Abstract

We examine whether the communication of combined assurance is effective in increasing favourable investment decisions towards a company with negative financial performance. We find that the communication of combined assurance, compared to when only corporate social responsibility (CSR) assurance is communicated, results in a more significant impact on investors’ decisions to invest when the company has negative performance, but this effect is less significant when the company has positive performance. When the company has positive performance, perceived reliability and willingness to invest do not change regardless of whether combined assurance is included or not.

Suggested Citation

  • Soon‐Yeow Phang & Hien Hoang, 2021. "Does positive CSR increase willingness to invest in a company based on performance? The incremental role of combined assurance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5631-5654, December.
    • Handle: RePEc:bla:acctfi:v:61:y:2021:i:4:p:5631-5654
    DOI: 10.1111/acfi.12771
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    References listed on IDEAS

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    Cited by:

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    2. Shahid, Ahmad Usman & Patel, Chris & Pan, Peipei, 2022. "Corporate social responsibility, intrinsic religiosity, and investment decisions," Journal of Behavioral and Experimental Finance, Elsevier, vol. 34(C).
    3. Volker Lingnau & Florian Fuchs & Florian Beham, 2022. "The link between corporate sustainability and willingness to invest: new evidence from the field of ethical investments," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(3), pages 335-369, September.
    4. Ayman Issa & Jalal Rajeh Hanaysha, 2023. "Achieving sustainable business: The nexus between external sustainability assurance, CSR strategy and emission reduction," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3095-3109, November.
    5. Shahid, Ahmad Usman & Patel, Chris & Pan, Peipei, 2025. "Islamic worldview, social consciousness, and socially responsible investment," Advances in accounting, Elsevier, vol. 68(C).

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