Corporation Social Responsibility Disclosure, Financial Reporting Quality and Investment Efficiency: Based on Chinese Listed Firms during “the Post-mandatory Period”

Abstract

Abstract: Since 2009, China Securities Regulatory Commission has begun to require listed firms on the specified boards to disclose their corporate social responsibility (CSR), and encouraged others to report CSR voluntarily. Based on a set of unique data from Chinese listed firms during 2010 to 2013, we find that higher investment efficiency exists in the CSR reporting firms, especially in the overinvestment ones. Moreover, this association is more pronounced in the firms with lower financial reporting quality. This result indicates that the CSR disclosures can provide effective incremental information to help reducing the information asymmetry, especially when the financial reports cannot match the need from capital market.

Key words: corporation social responsibility disclosure, financial reporting quality, investment efficiency, information asymmetry

Zhong Ma, Xu Guanghua. Corporation Social Responsibility Disclosure, Financial Reporting Quality and Investment Efficiency: Based on Chinese Listed Firms during “the Post-mandatory Period”[J]. , 2017, 29(2): 234-244.

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