Audited financial reporting and voluntary disclosure of corporate social responsibility (CSR) reports

Chen, Long, Srinidhi, Bin, Tsang, Albert and Yu, Wei 2016, Audited financial reporting and voluntary disclosure of corporate social responsibility (CSR) reports, Journal of Management Accounting Research, vol. 28, no. 2, pp. 53-76, doi: 10.2308/jmar-51411.


Title Audited financial reporting and voluntary disclosure of corporate social responsibility (CSR) reports
Author(s) Chen, Long
Srinidhi, Bin
Tsang, Albert
Yu, Wei
Journal name Journal of Management Accounting Research
Volume number 28
Issue number 2
Start page 53
End page 76
Total pages 24
Publisher American Accounting Association
Place of publication Sarasota, Flo.
Publication date 2016-06-01
ISSN 1049-2127
1558-8033
Summary Prior studies show that corporate social responsibility (CSR) reporting is informative to investors but lacks credibility. This study examines whether a commitment to audits of financial outcomes, proxied by audit fees, is associated with greater CSR reporting credibility. We find that audit fees are positively associated with the likelihood of standalone CSR report issuance, and this positive association becomes stronger when managers perceive a greater need for credibility, i.e., when CSR reports are longer or issued with external assurance, when firms have strong CSR concerns, and when reports are issued sporadically. Corroborating our results, we find that CSR reports issued by firms committing to high audit fees accelerate the incorporation of future earnings information into current stock price. Taken together, our findings suggest that a commitment to higher financial reporting quality has the potential to bring positive externality to firms’ nonfinancial disclosures and ultimately affects the issuance of CSR reports.
Language eng
DOI 10.2308/jmar-51411
Field of Research 1501 Accounting, Auditing And Accountability
HERDC Research category C1.1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2016, American Accounting Association
Persistent URL http://hdl.handle.net/10536/DRO/DU:30109990

Document type: Journal Article
Collection: Deakin Graduate School of Business
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