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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| Format: | research article |
| Language: | English |
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Wiley
2023
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| Online Access: | https://cris.library.msu.ac.zw//handle/11408/5570 https://doi.org/10.1002/jcaf.22467 |
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| _version_ | 1779905191388119040 |
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| author | Lewis Makosa Jinkun Yang Lovemore Sitsha Moses Jachi |
| author2 | School of Accounting, Tianjin University of Finance and Economics, Tianjin, China |
| author_facet | School of Accounting, Tianjin University of Finance and Economics, Tianjin, China Lewis Makosa Jinkun Yang Lovemore Sitsha Moses Jachi |
| author_sort | Lewis Makosa |
| collection | DSpace |
| description | 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. |
| format | research article |
| id | ir-11408-5570 |
| institution | My University |
| language | English |
| publishDate | 2023 |
| publisher | Wiley |
| record_format | dspace |
| spelling | ir-11408-55702023-05-02T11:23:13Z Mandatory CSR disclosure and firm investment behavior: Evidence from a quasi-natural experiment in China Lewis Makosa Jinkun Yang Lovemore Sitsha Moses Jachi School of Accounting, Tianjin University of Finance and Economics, Tianjin, China School of Accounting, Tianjin University of Finance and Economics, Tianjin, China School of Accounting, Midlands State University, Gweru, Zimbabwe School of Accounting, Midlands State University, Gweru, Zimbabwe Mandatory disclosure Corporate social responsibility Investment behavior China CSR disclosure 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. 31 4 33 47 2023-05-02T11:23:12Z 2023-05-02T11:23:12Z 2020-08-17 research article https://cris.library.msu.ac.zw//handle/11408/5570 https://doi.org/10.1002/jcaf.22467 en Journal of Corporate Accounting and Finance 1097-0053 open Wiley |
| spellingShingle | Mandatory disclosure Corporate social responsibility Investment behavior China CSR disclosure Lewis Makosa Jinkun Yang Lovemore Sitsha Moses Jachi Mandatory CSR disclosure and firm investment behavior: Evidence from a quasi-natural experiment in China |
| title | Mandatory CSR disclosure and firm investment behavior: Evidence from a quasi-natural experiment in China |
| title_full | Mandatory CSR disclosure and firm investment behavior: Evidence from a quasi-natural experiment in China |
| title_fullStr | Mandatory CSR disclosure and firm investment behavior: Evidence from a quasi-natural experiment in China |
| title_full_unstemmed | Mandatory CSR disclosure and firm investment behavior: Evidence from a quasi-natural experiment in China |
| title_short | Mandatory CSR disclosure and firm investment behavior: Evidence from a quasi-natural experiment in China |
| title_sort | mandatory csr disclosure and firm investment behavior: evidence from a quasi-natural experiment in china |
| topic | Mandatory disclosure Corporate social responsibility Investment behavior China CSR disclosure |
| url | https://cris.library.msu.ac.zw//handle/11408/5570 https://doi.org/10.1002/jcaf.22467 |
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