Mandatory CSR disclosure and firm investment behavior: Evidence from a quasi-natural experiment in China
In this article, we examine the effect of mandatory disclosure of corporate social responsibility on firm's investment behavior. Our analysis exploits China's 2008 mandatory requirement that firms disclose their corporate social responsibility activities. Using difference-in-difference des...
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| Main Authors: | , , , |
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| Other Authors: | |
| Format: | research article |
| Language: | English |
| Published: |
Wiley
2023
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| Subjects: | |
| Online Access: | https://cris.library.msu.ac.zw//handle/11408/5570 https://doi.org/10.1002/jcaf.22467 |
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| Summary: | In this article, we examine the effect of mandatory disclosure of corporate social responsibility on firm's investment behavior. Our analysis exploits China's 2008 mandatory requirement that firms disclose their corporate social responsibility activities. Using difference-in-difference design, the study finds that firms that were made to report their corporate social responsibility experience a decrease in the level of investment, but the firm investment efficiency improved, especially on alleviating over-investments. These findings suggest that mandatory CSR disclosure alters firm investment behavior and the implementation of such a disclosure requirement may need the government support. |
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