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Do reputation concerns motivate voluntary initiation of corporate social responsibility reporting? Evidence from China

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  • Huang, Kuo-Cheng
  • Wang, Yu-Chun

Abstract

We investigate whether reputation renders a firm more or less likely to report corporate social responsibility (CSR) activities by studying A-share firms listed on the Chinese stock market. After considering the mandatory disclosure rules required by the Shanghai Stock Exchange and the CSI 300 index, we find that a firm is more likely to initiate CSR reporting after it violates security regulations and is punished by supervisors, consistent with our reputation hypothesis. This effect is more prominent for non-state-owned enterprises (non-SOEs), demonstrating that the initiation of CSR reporting might be a remedy to a bad reputation for non-SOEs. By contrast, SOEs may focus more on political rather than economic factors.

Suggested Citation

  • Huang, Kuo-Cheng & Wang, Yu-Chun, 2022. "Do reputation concerns motivate voluntary initiation of corporate social responsibility reporting? Evidence from China," Finance Research Letters, Elsevier, vol. 47(PA).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321005493
    DOI: 10.1016/j.frl.2021.102611
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    Cited by:

    1. Mark Fuller, 2022. "Wheat and chaff: the degree to which strategic management principles are integrated within corporate social responsibility reporting among large Canadian firms," International Journal of Corporate Social Responsibility, Springer, vol. 7(1), pages 1-17, December.

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    More about this item

    Keywords

    Corporate social responsibility (CSR) reporting; Reputation;

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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