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Quality of Mandatory Social Responsibility Disclosure and Total Factor Productivity of Enterprises: Evidence from Chinese Listed Companies

Author

Listed:
  • Qi Ban

    (School of Finance, Nankai University, Tianjin 300350, China)

  • Huiting Zhu

    (School of Bussiness, Shandong Agriculture and Engineering University, Jinan 250100, China)

Abstract

This study attempts to determine whether improving the quality of mandatory corporate social responsibility (CSR) information disclosure can have a positive impact on a firm’s development. To this end, an empirical analysis is conducted to establish a relationship between the quality of mandatory CSR information disclosure and a firm’s total factor productivity (TFP), using data from A-share listed companies in China over the period 2009–2020. The results show that: (1) Improving the quality of mandatory CSR disclosure leads to a significant increase in a firm’s TFP. (2) By alleviating a firm’s financing constraints and agency costs, the improved quality of mandatory CSR disclosure effectively enhances the firm’s investment efficiency and innovation capacity, leading to higher TFP. This research extends the influence of CSR disclosure on the economic development outcomes of Chinese firms, and provides theoretical guidance for the development and improvement of CSR disclosure mechanisms in emerging economies.

Suggested Citation

  • Qi Ban & Huiting Zhu, 2023. "Quality of Mandatory Social Responsibility Disclosure and Total Factor Productivity of Enterprises: Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 15(13), pages 1-22, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:13:p:10110-:d:1179532
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    References listed on IDEAS

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