Skip to main content
Top
Published in: Review of Quantitative Finance and Accounting 4/2023

03-02-2023 | Original Research

Corporate social responsibility and annual report reading difficulty

Authors: Akhilesh Bajaj, Lori N. K. Leonard, Li Sun, Zhenze Xing

Published in: Review of Quantitative Finance and Accounting | Issue 4/2023

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

We use more than 21,000 firm-year observations for 2534 U.S. companies between 1993 and 2018 to investigate the relationship between corporate social responsibility performance and the reading difficulty of annual reports. We find a significant negative relationship, suggesting that the annual reports of socially responsible firms are more readable (i.e., easier to read and understand). Overall, our results suggest that socially responsible firms are more ethical and transparent, which is consistent with the stakeholder view.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Appendix
Available only for authorised users
Footnotes
1
Readability is related to transparency; however, they are not the same concept. Based on prior research (e.g., Kim, Park, and Wier 2012), transparency refers to the tendency of a firm to disclose truthful facts to stakeholders. Hence, such firms are less likely to engage in opportunistic behavior. Readability refers to the extent how easy or difficult for readers to understand corporate disclosures. Therefore, transparency is more related to corporate behavior, while readability is more related to the complexity of corporate disclosures. In general, annual reports of transparent firms are more readable.
 
2
Morgan Stanley Capital International (MSCI) Environmental, Social, and Governance (ESG) database.
 
4
The final year of CSR data from MSCI ESG in Compustat is 2018 as of March 23, 2022.
 
5
Perhaps closet to our study are the findings of Bacha and Ajina (2020), who find that CSR is positively related to annual report readability among French firms. Our study complements Bacha and Ajina (2020) but differs along several important dimensions. First, our results rely on U.S. data rather than French dada. Second, Bacha and Ajina (2020) use the Fog Index to measure readability, while we use the Bog Index, which is suggested by many recent studies such as Bonsall et al. (2017) as a more comprehensive readability measure than the Fog Index. Third, our sample period covers the period of 1993–2018, while that of Bacha and Ajina (2020) covers only 4 years (i.e., 2013–2016). Hence, our findings may be more robust, relative to Bacha and Ajina (2020).
 
6
We thank Professor Feng Li for providing the Fog Index data and Professor McDonald for providing file size data.
 
7
We do not include bond ratings and corporate governance in the baseline model because adding these two variables greatly reduces our sample size.
 
8
Bebchuk et al. (2009) construct this index using six components including staggered boards, limits to shareholder amendments of the bylaws, supermajority requirements for mergers, supermajority requirements for charter amendments, poison pills, and golden parachute arrangements. A high E-index suggests weak corporate governance.
 
Literature
go back to reference Arouri M, Pijourlet G (2017) CSR performance and the value of cash holdings: International evidence. J Bus Ethics 140(2):263–284 CrossRef Arouri M, Pijourlet G (2017) CSR performance and the value of cash holdings: International evidence. J Bus Ethics 140(2):263–284 CrossRef
go back to reference Attig N, Ghoul SE, Guedhami O, Suh J (2013) Corporate social responsibility and credit ratings. J Bus Ethics 117:679–694 CrossRef Attig N, Ghoul SE, Guedhami O, Suh J (2013) Corporate social responsibility and credit ratings. J Bus Ethics 117:679–694 CrossRef
go back to reference Aupperle KE, Carroll AB, Hartfield JD (1985) An empirical examination of the relationship between corporate social responsibility and profitability. Acad Manag J 28(2):446–463 CrossRef Aupperle KE, Carroll AB, Hartfield JD (1985) An empirical examination of the relationship between corporate social responsibility and profitability. Acad Manag J 28(2):446–463 CrossRef
go back to reference Axjonow A, Ernstberger J, Pott C (2018) The impact of corporate social responsibility disclosure on corporate reputation: a non-professional stakeholder perspective. J Bus Ethics 151(2):429–450 CrossRef Axjonow A, Ernstberger J, Pott C (2018) The impact of corporate social responsibility disclosure on corporate reputation: a non-professional stakeholder perspective. J Bus Ethics 151(2):429–450 CrossRef
go back to reference Bacha S, Ajina A (2020) CSR performance and annual report readability: evidence from France. Corp Gov 20(2):201–215 CrossRef Bacha S, Ajina A (2020) CSR performance and annual report readability: evidence from France. Corp Gov 20(2):201–215 CrossRef
go back to reference Bebchuk LA, Cohen A, Ferrell A (2009) What matters in corporate governance? Rev Financ Stud 22(2):783–827 CrossRef Bebchuk LA, Cohen A, Ferrell A (2009) What matters in corporate governance? Rev Financ Stud 22(2):783–827 CrossRef
go back to reference Ben-Amar W, Belgacem I (2018) Do CSR firms provide more readable financial disclosures? Corp Soc Responsib Environ Manag 25(5):1009–1018 CrossRef Ben-Amar W, Belgacem I (2018) Do CSR firms provide more readable financial disclosures? Corp Soc Responsib Environ Manag 25(5):1009–1018 CrossRef
go back to reference Berman SL, Wicks AC, Kotha S, Jones TM (1999) Does stakeholder orientation matter? The relationship between stakeholder management models and firm financial performance. Acad Manag J 42:488–506 CrossRef Berman SL, Wicks AC, Kotha S, Jones TM (1999) Does stakeholder orientation matter? The relationship between stakeholder management models and firm financial performance. Acad Manag J 42:488–506 CrossRef
go back to reference Beurden PV, Gossling T (2008) The worth of values—a literature review on the relation between corporate social and financial performance. J Bus Ethics 82(2):407–422 CrossRef Beurden PV, Gossling T (2008) The worth of values—a literature review on the relation between corporate social and financial performance. J Bus Ethics 82(2):407–422 CrossRef
go back to reference Bloomfield R (2002) The incomplete revelation hypothesis: implications for financial reporting. Account Horiz 16(3):233–244 CrossRef Bloomfield R (2002) The incomplete revelation hypothesis: implications for financial reporting. Account Horiz 16(3):233–244 CrossRef
go back to reference Bonsall SB, Leone AJ, Miller BP, Rennekamp K (2017) A plain English measure of financial reporting readability. J Account Econ 63:329–357 CrossRef Bonsall SB, Leone AJ, Miller BP, Rennekamp K (2017) A plain English measure of financial reporting readability. J Account Econ 63:329–357 CrossRef
go back to reference Bonsall SB, Miller BP (2017) The impact of narrative disclosure readability on bond ratings and the cost of debt capital. Rev Acc Stud 22(2):608–643 CrossRef Bonsall SB, Miller BP (2017) The impact of narrative disclosure readability on bond ratings and the cost of debt capital. Rev Acc Stud 22(2):608–643 CrossRef
go back to reference Bozanic Z, Thevenot M (2015) Qualitative disclosure and changes in sell-side financial analysts’ information environment. Contemp Account Res 32(4):1595–1616 CrossRef Bozanic Z, Thevenot M (2015) Qualitative disclosure and changes in sell-side financial analysts’ information environment. Contemp Account Res 32(4):1595–1616 CrossRef
go back to reference Bozzolan S, Fabrizi M, Mallinand CA, Michelon G (2015) Corporate social responsibility and earnings quality: international evidence. Int J Account 50(4):361–396 CrossRef Bozzolan S, Fabrizi M, Mallinand CA, Michelon G (2015) Corporate social responsibility and earnings quality: international evidence. Int J Account 50(4):361–396 CrossRef
go back to reference Brammer S, Millington A (2008) Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strateg Manag J 29:1325–1343 CrossRef Brammer S, Millington A (2008) Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strateg Manag J 29:1325–1343 CrossRef
go back to reference Brennan NM, Merkl-Davies DM (2018) Do firms effectively communicate with financial stakeholders? A conceptual model of corporate communication in a capital market context. Account Bus Res 48(5):553–577 CrossRef Brennan NM, Merkl-Davies DM (2018) Do firms effectively communicate with financial stakeholders? A conceptual model of corporate communication in a capital market context. Account Bus Res 48(5):553–577 CrossRef
go back to reference Carmeli A, Gilat G, Waldman D (2007) The role of perceived organizational performance in organizational identification, adjustment and job performance. J Manage Stud 44:972–992 CrossRef Carmeli A, Gilat G, Waldman D (2007) The role of perceived organizational performance in organizational identification, adjustment and job performance. J Manage Stud 44:972–992 CrossRef
go back to reference Carroll A (1979) A three-dimensional conceptual model of corporate performance. Acad Manag Rev 4(4):497–505 CrossRef Carroll A (1979) A three-dimensional conceptual model of corporate performance. Acad Manag Rev 4(4):497–505 CrossRef
go back to reference Chakravarthy J, deHaan E, Rajgopal S (2014) Reputation repair after a serious restatement. Account Rev 94(4):1329–1363 CrossRef Chakravarthy J, deHaan E, Rajgopal S (2014) Reputation repair after a serious restatement. Account Rev 94(4):1329–1363 CrossRef
go back to reference Chen Y-C, Hung M, Wang Y (2018) The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China. J Account Econ 65:169–190 CrossRef Chen Y-C, Hung M, Wang Y (2018) The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China. J Account Econ 65:169–190 CrossRef
go back to reference Cheung A (2016) Corporate social responsibility and corporate cash holdings. J Corp Finan 37:412–430 CrossRef Cheung A (2016) Corporate social responsibility and corporate cash holdings. J Corp Finan 37:412–430 CrossRef
go back to reference Cho SY, Lee C, Pfeiffer RJ (2013) Corporate social responsibility performance and information asymmetry. J Account Public Policy 32:71–83 CrossRef Cho SY, Lee C, Pfeiffer RJ (2013) Corporate social responsibility performance and information asymmetry. J Account Public Policy 32:71–83 CrossRef
go back to reference Cho CH, Patten DM (2007) The role of environmental disclosures as tools of legitimacy: a research note. Acc Organ Soc 32:639–647 CrossRef Cho CH, Patten DM (2007) The role of environmental disclosures as tools of legitimacy: a research note. Acc Organ Soc 32:639–647 CrossRef
go back to reference Cho CH, Patten DM (2010) Environmental reporting on the internet by America’s toxic 100: legitimacy and self-presentation. Int J Account Inf Syst 11:1–16 CrossRef Cho CH, Patten DM (2010) Environmental reporting on the internet by America’s toxic 100: legitimacy and self-presentation. Int J Account Inf Syst 11:1–16 CrossRef
go back to reference Christensen DM (2016) Corporate accountability reporting and high-profile misconduct. Account Rev 91(2):377–399 CrossRef Christensen DM (2016) Corporate accountability reporting and high-profile misconduct. Account Rev 91(2):377–399 CrossRef
go back to reference Christensen HB, Floyd E, Liu LY, Maffett M (2017) The real effects of mandated information on social responsibility in financial reports: Evidence from mine-safety records. J Account Econ 64:284–304 CrossRef Christensen HB, Floyd E, Liu LY, Maffett M (2017) The real effects of mandated information on social responsibility in financial reports: Evidence from mine-safety records. J Account Econ 64:284–304 CrossRef
go back to reference Church BK, Jiang W, Kuang XJ, Vitalis A (2019) A dollar for a tree or a tree for a dollar? The behavioral effects of measurement basis on managers’ CSR investment decision. Account Rev 94(5):117–137 CrossRef Church BK, Jiang W, Kuang XJ, Vitalis A (2019) A dollar for a tree or a tree for a dollar? The behavioral effects of measurement basis on managers’ CSR investment decision. Account Rev 94(5):117–137 CrossRef
go back to reference Davis AK, Guenther DA, Krull LK, Williams BM (2016) Do socially responsible firms pay more taxes? Account Rev 91(1):47–68 CrossRef Davis AK, Guenther DA, Krull LK, Williams BM (2016) Do socially responsible firms pay more taxes? Account Rev 91(1):47–68 CrossRef
go back to reference Deckop JR, Merriman KK, Gupta S (2006) The effect of CEO pay structure on corporate social performance. J Manag 32(3):329–342 Deckop JR, Merriman KK, Gupta S (2006) The effect of CEO pay structure on corporate social performance. J Manag 32(3):329–342
go back to reference De Franco C, Hope O, Vyas D, Zhou Y (2015) Analyst report readability. Contemp Account Res 32(1):76–104 CrossRef De Franco C, Hope O, Vyas D, Zhou Y (2015) Analyst report readability. Contemp Account Res 32(1):76–104 CrossRef
go back to reference Demerjian P, Lev B, McVay S (2012) Quantifying managerial ability: a new measure and validity tests. Managerial Science 58(7):122–1248 Demerjian P, Lev B, McVay S (2012) Quantifying managerial ability: a new measure and validity tests. Managerial Science 58(7):122–1248
go back to reference Deng X, Kang J, Low BS (2013) Corporate social responsibility and stakeholder value maximization: evidence from mergers. J Financ Econ 110:87–109 CrossRef Deng X, Kang J, Low BS (2013) Corporate social responsibility and stakeholder value maximization: evidence from mergers. J Financ Econ 110:87–109 CrossRef
go back to reference Dhaliwal D, Li D, Tsang A, Yang Y (2011) Voluntary nonfinancial disclosure and the cost of equity capital: the initiation of corporate social responsibility reporting. Account Rev 86(1):59–100 CrossRef Dhaliwal D, Li D, Tsang A, Yang Y (2011) Voluntary nonfinancial disclosure and the cost of equity capital: the initiation of corporate social responsibility reporting. Account Rev 86(1):59–100 CrossRef
go back to reference Dhaliwal D, Li OZ, Tsang A, Yang YG (2014) Corporate social responsibility disclosure and the cost of equity capital: The roles of stakeholder orientation and financial transparency. J Account Public Policy 33:328–355 CrossRef Dhaliwal D, Li OZ, Tsang A, Yang YG (2014) Corporate social responsibility disclosure and the cost of equity capital: The roles of stakeholder orientation and financial transparency. J Account Public Policy 33:328–355 CrossRef
go back to reference Dhaliwal D, Radhakrishnan S, Tsang A, Yang YG (2012) Nonfinancial disclosure and analyst forecast accuracy: international evidence on corporate social responsibility disclosure. Account Rev 87(3):723–759 CrossRef Dhaliwal D, Radhakrishnan S, Tsang A, Yang YG (2012) Nonfinancial disclosure and analyst forecast accuracy: international evidence on corporate social responsibility disclosure. Account Rev 87(3):723–759 CrossRef
go back to reference Ertugrul M, Lei J, Qiu J, Wan C (2017) Annual report readability, tone ambiguity, and the cost of borrowing. J Financ Quant Anal 52(2):811–836 CrossRef Ertugrul M, Lei J, Qiu J, Wan C (2017) Annual report readability, tone ambiguity, and the cost of borrowing. J Financ Quant Anal 52(2):811–836 CrossRef
go back to reference Fatima T, Elbanna S (2022) Corporate social responsibility implementation: a review and a research agenda towards an integrative framework. J Bus Ethics (forthcoming) Fatima T, Elbanna S (2022) Corporate social responsibility implementation: a review and a research agenda towards an integrative framework. J Bus Ethics (forthcoming)
go back to reference Freeman RE (1984) Strategic management: a stakeholder approach. Pitman, Boston, MA Freeman RE (1984) Strategic management: a stakeholder approach. Pitman, Boston, MA
go back to reference Friedman M (1970) The social responsibility of business is to increase its profits. The New York Times Magazine (September 13) Friedman M (1970) The social responsibility of business is to increase its profits. The New York Times Magazine (September 13)
go back to reference Godfrey PC (2005) The relationship between corporate philanthropy and shareholder wealth: a risk-management perspective. Acad Manag Rev 30(4):777–798 CrossRef Godfrey PC (2005) The relationship between corporate philanthropy and shareholder wealth: a risk-management perspective. Acad Manag Rev 30(4):777–798 CrossRef
go back to reference Godfrey PC, Merrill CB, Hansen JM (2009) The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strateg Manag J 30:425–445 CrossRef Godfrey PC, Merrill CB, Hansen JM (2009) The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strateg Manag J 30:425–445 CrossRef
go back to reference Griffin JJ, Mahon JF (1997) The corporate social performance and corporate financial performance debate: twenty-five years of incomparable research. Bus Soc 36(1):5–31 CrossRef Griffin JJ, Mahon JF (1997) The corporate social performance and corporate financial performance debate: twenty-five years of incomparable research. Bus Soc 36(1):5–31 CrossRef
go back to reference Graves S, Waddock SA (1994) Institutional owners and corporate social performance. Acad Manag J 18(4):303–317 Graves S, Waddock SA (1994) Institutional owners and corporate social performance. Acad Manag J 18(4):303–317
go back to reference Guay W, Samuals D, Taylor D (2016) Guiding through the FOG: Financial statement complexity and voluntary disclosure. J Account Econ 62(2–3):234–269 CrossRef Guay W, Samuals D, Taylor D (2016) Guiding through the FOG: Financial statement complexity and voluntary disclosure. J Account Econ 62(2–3):234–269 CrossRef
go back to reference Hasan MM (2020) Readability of narrative disclosure in 10-K reports: Does managerial ability matter? Eur Account Rev 29(1):147–168 CrossRef Hasan MM (2020) Readability of narrative disclosure in 10-K reports: Does managerial ability matter? Eur Account Rev 29(1):147–168 CrossRef
go back to reference Hoi CK, Wu Q, Zhang H (2013) Is corporate social responsibility associated with tax avoidance: evidence from irresponsible CSR activities? Account Rev 88(6):2025–2059 CrossRef Hoi CK, Wu Q, Zhang H (2013) Is corporate social responsibility associated with tax avoidance: evidence from irresponsible CSR activities? Account Rev 88(6):2025–2059 CrossRef
go back to reference Jensen MC (2001) Value maximization, stakeholder theory, and the corporate objective function. J Appl Corp Financ 14(3):8–21 CrossRef Jensen MC (2001) Value maximization, stakeholder theory, and the corporate objective function. J Appl Corp Financ 14(3):8–21 CrossRef
go back to reference Jiraporn P, Jiraporn N, Boeprasert A, Chang K (2014) Does corporate social responsibility improve credit ratings? Evid Geogr Identif Financ Manag 43(3):505–531 CrossRef Jiraporn P, Jiraporn N, Boeprasert A, Chang K (2014) Does corporate social responsibility improve credit ratings? Evid Geogr Identif Financ Manag 43(3):505–531 CrossRef
go back to reference Jo H, Harjoto MA (2011) Corporate governance and firm value: The impact of corporate social responsibility. J Bus Ethics 103(3):351–383 CrossRef Jo H, Harjoto MA (2011) Corporate governance and firm value: The impact of corporate social responsibility. J Bus Ethics 103(3):351–383 CrossRef
go back to reference Johnson RA, Greening DW (1999) The effects of corporate governance and institutional ownership types on corporate social performance. Acad Manag J 42(5):564–576 CrossRef Johnson RA, Greening DW (1999) The effects of corporate governance and institutional ownership types on corporate social performance. Acad Manag J 42(5):564–576 CrossRef
go back to reference Karnani A (2010) The case against corporate social responsibility. Wall Street Journal (August 23) Karnani A (2010) The case against corporate social responsibility. Wall Street Journal (August 23)
go back to reference Khan M, Serafeim G, Yoon A (2016) Corporate sustainability: first evidence on materiality. Account Rev 91(6):1697–1724 CrossRef Khan M, Serafeim G, Yoon A (2016) Corporate sustainability: first evidence on materiality. Account Rev 91(6):1697–1724 CrossRef
go back to reference Kile CO, Phillips ME (2009) Using industry classification codes to sample high-technology firms: analysis and recommendations. J Acc Audit Financ 24(1):35–58 Kile CO, Phillips ME (2009) Using industry classification codes to sample high-technology firms: analysis and recommendations. J Acc Audit Financ 24(1):35–58
go back to reference Kim Y, Li H, Li S (2014) Corporate social responsibility and stock price crash risk. J Bus Financ 43:1–13 Kim Y, Li H, Li S (2014) Corporate social responsibility and stock price crash risk. J Bus Financ 43:1–13
go back to reference Kim Y, Park MS, Wier B (2012) Is earnings quality associated with corporate social responsibility? Account Rev 87(3):761–796 CrossRef Kim Y, Park MS, Wier B (2012) Is earnings quality associated with corporate social responsibility? Account Rev 87(3):761–796 CrossRef
go back to reference Kothari SP, Leone A, Wasley CE (2005) Performance matched discretionary accrual measures. J Account Econ 35(1):163–197 CrossRef Kothari SP, Leone A, Wasley CE (2005) Performance matched discretionary accrual measures. J Account Econ 35(1):163–197 CrossRef
go back to reference Lang M, Stice-Lawrence L (2015) Textual analysis and international financial reporting: large sample evidence. J Account Econ 60(2):110–135 CrossRef Lang M, Stice-Lawrence L (2015) Textual analysis and international financial reporting: large sample evidence. J Account Econ 60(2):110–135 CrossRef
go back to reference Lanis R, Richardson G (2015) Is corporate social responsibility associated with tax avoidance? J Bus Ethics 127(2):439–457 CrossRef Lanis R, Richardson G (2015) Is corporate social responsibility associated with tax avoidance? J Bus Ethics 127(2):439–457 CrossRef
go back to reference Lawrence A (2013) Individual investors and financial disclosure. J Account Econ 56:130–147 CrossRef Lawrence A (2013) Individual investors and financial disclosure. J Account Econ 56:130–147 CrossRef
go back to reference Lehavy R, Li F, Merkley K (2011) The effect of annual report readability on analyst following and the properties of their earnings forecasts. Account Rev 86(3):1087–1115 CrossRef Lehavy R, Li F, Merkley K (2011) The effect of annual report readability on analyst following and the properties of their earnings forecasts. Account Rev 86(3):1087–1115 CrossRef
go back to reference Li F (2008) Annual report readability, current earnings, and earnings persistence. J Account Econ 45(2):221–247 CrossRef Li F (2008) Annual report readability, current earnings, and earnings persistence. J Account Econ 45(2):221–247 CrossRef
go back to reference Lo K, Ramos F, Rogo R (2017) Earnings management and annual report readability. J Account Econ 63:1–25 CrossRef Lo K, Ramos F, Rogo R (2017) Earnings management and annual report readability. J Account Econ 63:1–25 CrossRef
go back to reference Loughran T, McDonald B (2011) When is a liability not a liability? Textual analysis, dictionaries, and 10-Ks. J Financ 66(1):1–25 CrossRef Loughran T, McDonald B (2011) When is a liability not a liability? Textual analysis, dictionaries, and 10-Ks. J Financ 66(1):1–25 CrossRef
go back to reference Loughran T, McDonald B (2014) Measuring readability in financial disclosures. J Financ 69(4):1643–1671 CrossRef Loughran T, McDonald B (2014) Measuring readability in financial disclosures. J Financ 69(4):1643–1671 CrossRef
go back to reference Lundholm RJ, Rogo R, Zhang JL (2014) Restoring the tower of Babel: How foreign firms communicate with U.S. investors. Account Rev 89(4):1453–1485 CrossRef Lundholm RJ, Rogo R, Zhang JL (2014) Restoring the tower of Babel: How foreign firms communicate with U.S. investors. Account Rev 89(4):1453–1485 CrossRef
go back to reference Luo JH, Li X, Chen H (2018) Annual report readability and corporate agency costs. China J Account Res 11:187–212 CrossRef Luo JH, Li X, Chen H (2018) Annual report readability and corporate agency costs. China J Account Res 11:187–212 CrossRef
go back to reference Lys T, Naughton JP, Wang C (2015) Signaling through corporate accountability reporting. J Account Econ 60:56–72 CrossRef Lys T, Naughton JP, Wang C (2015) Signaling through corporate accountability reporting. J Account Econ 60:56–72 CrossRef
go back to reference Mahoney L, Thorn L (2006) An examination of the structure of executive compensation and corporate social responsibility: a canadian investigation. J Bus Ethics 69(2):149–162 CrossRef Mahoney L, Thorn L (2006) An examination of the structure of executive compensation and corporate social responsibility: a canadian investigation. J Bus Ethics 69(2):149–162 CrossRef
go back to reference Malik M (2015) Value-enhancing capabilities of CSR: a brief review of contemporary literature. J Bus Ethics 127(2):419–438 CrossRef Malik M (2015) Value-enhancing capabilities of CSR: a brief review of contemporary literature. J Bus Ethics 127(2):419–438 CrossRef
go back to reference Manchiraju H, Rajgopal S (2017) Does corporate social responsibility (CSR) create shareholder value? Evidence from the Indian Companies Act 2013. J Account Res 55(5):1257–1300 CrossRef Manchiraju H, Rajgopal S (2017) Does corporate social responsibility (CSR) create shareholder value? Evidence from the Indian Companies Act 2013. J Account Res 55(5):1257–1300 CrossRef
go back to reference Margolis JD, Walsh JP (2003) Misery loves companies: Rethinking social initiatives by business. Adm Sci Q 48:268–305 CrossRef Margolis JD, Walsh JP (2003) Misery loves companies: Rethinking social initiatives by business. Adm Sci Q 48:268–305 CrossRef
go back to reference Maso LD, Lobo GJ, Mazzi F, Paugam L (2019) Implications of the joint provision of CSR assurance and financial audit for auditors’ assessment of going concern risk. Contemporary Accounting Research (forthcoming) Maso LD, Lobo GJ, Mazzi F, Paugam L (2019) Implications of the joint provision of CSR assurance and financial audit for auditors’ assessment of going concern risk. Contemporary Accounting Research (forthcoming)
go back to reference Martinez-Ferrero J, Garcia-Sanchez IM, Cuadrado-Ballestero B (2015) Effect of financial reporting quality on sustainability disclosure strategies. Corp Soc Responsib Environ Manag 22(1):45–64 CrossRef Martinez-Ferrero J, Garcia-Sanchez IM, Cuadrado-Ballestero B (2015) Effect of financial reporting quality on sustainability disclosure strategies. Corp Soc Responsib Environ Manag 22(1):45–64 CrossRef
go back to reference McGuire JB, Sundgren A, Schnessweis T (1988) Corporate social responsibility and firm financial performance. Acad Manag J 31(4):854–872 CrossRef McGuire JB, Sundgren A, Schnessweis T (1988) Corporate social responsibility and firm financial performance. Acad Manag J 31(4):854–872 CrossRef
go back to reference Moser DV, Martin PR (2012) A broad perspective on corporate social responsibility research in accounting. Account Rev 87(3):797–806 CrossRef Moser DV, Martin PR (2012) A broad perspective on corporate social responsibility research in accounting. Account Rev 87(3):797–806 CrossRef
go back to reference Nelling E, Webb E (2009) Corporate social responsibility and financial performance: the “virtuous circle” revisited. Rev Quant Financ Acc 32(2):197–209 CrossRef Nelling E, Webb E (2009) Corporate social responsibility and financial performance: the “virtuous circle” revisited. Rev Quant Financ Acc 32(2):197–209 CrossRef
go back to reference Orlitzky M, Schmidt FL, Rynes SL (2003) Corporate social and financial performance: a meta analysis. Organ Stud 24(3):403–411 CrossRef Orlitzky M, Schmidt FL, Rynes SL (2003) Corporate social and financial performance: a meta analysis. Organ Stud 24(3):403–411 CrossRef
go back to reference Petersen MA (2009) Estimating standard errors in finance panel data sets: Comparing approaches. Rev Financ Stud 22(1):435–480 CrossRef Petersen MA (2009) Estimating standard errors in finance panel data sets: Comparing approaches. Rev Financ Stud 22(1):435–480 CrossRef
go back to reference Porter ME, Van der Linde C (1995) Toward a new conception of the environment-competitiveness relationship. J Econ Perspect 9(4):97–118 CrossRef Porter ME, Van der Linde C (1995) Toward a new conception of the environment-competitiveness relationship. J Econ Perspect 9(4):97–118 CrossRef
go back to reference Securities and Exchange Commission (1998) A plain English handbook: How to create clear SEC disclosure. SEC Office of Investor Education and Assistance Securities and Exchange Commission (1998) A plain English handbook: How to create clear SEC disclosure. SEC Office of Investor Education and Assistance
go back to reference Securities and Exchange Commission (2013) The path forward on disclosure. Speech given by SEC chairperson Mary White to the National Association of Corporate Directors Securities and Exchange Commission (2013) The path forward on disclosure. Speech given by SEC chairperson Mary White to the National Association of Corporate Directors
go back to reference Securities and Exchange Commission (2014) Disclosure effectiveness: remarks before the American Bar Association Business Law Section Meeting Securities and Exchange Commission (2014) Disclosure effectiveness: remarks before the American Bar Association Business Law Section Meeting
go back to reference Shank T, Manullang D, Hill R (2005) Doing well while doing good revisited: a study of socially responsible firms’ short term versus long-term performance. Manag Financ 30:33–46 Shank T, Manullang D, Hill R (2005) Doing well while doing good revisited: a study of socially responsible firms’ short term versus long-term performance. Manag Financ 30:33–46
go back to reference Smith NC (1994) The new corporate philanthropy. Harv Bus Rev 6:105–116 Smith NC (1994) The new corporate philanthropy. Harv Bus Rev 6:105–116
go back to reference Smith NC (2003) Corporate social responsibility: Whether or how? Calif Manage Rev 45(4):52–76 CrossRef Smith NC (2003) Corporate social responsibility: Whether or how? Calif Manage Rev 45(4):52–76 CrossRef
go back to reference Sun L, Johnson G, Bradley W (2022) CEO power and annual report reading difficulty. J Contemp Account Econ (forthcoming) Sun L, Johnson G, Bradley W (2022) CEO power and annual report reading difficulty. J Contemp Account Econ (forthcoming)
go back to reference Ullman AE (1985) Data in search of a theory: a critical examination of the relationships among social performance, social disclosure and economic performance of U.S. firms. Acad Manag Rev 10(3):540–557 CrossRef Ullman AE (1985) Data in search of a theory: a critical examination of the relationships among social performance, social disclosure and economic performance of U.S. firms. Acad Manag Rev 10(3):540–557 CrossRef
go back to reference Waddock S, Graves S (1997) The corporate social performance – financial performance link. Strateg Manag J 18(4):303–319 CrossRef Waddock S, Graves S (1997) The corporate social performance – financial performance link. Strateg Manag J 18(4):303–319 CrossRef
go back to reference Walls JL, Berrone P, Phan PH (2012) Corporate governance and environmental performance: Is there really a link? Strateg Manag J 33(8):885–913 CrossRef Walls JL, Berrone P, Phan PH (2012) Corporate governance and environmental performance: Is there really a link? Strateg Manag J 33(8):885–913 CrossRef
go back to reference Wang C, Qureshi I, Guo F, Zhang Q (2022) Corporate social responsibility and disruptive innovation: the moderating effect of environmental turbulence. J Bus Res 139:1435–1450 CrossRef Wang C, Qureshi I, Guo F, Zhang Q (2022) Corporate social responsibility and disruptive innovation: the moderating effect of environmental turbulence. J Bus Res 139:1435–1450 CrossRef
go back to reference Wood DJ, Jones RE (1995) Stakeholder mismatching: a theoretical problem in empirical research on corporate social performance. Int J Org Anal 3(3):229–267 CrossRef Wood DJ, Jones RE (1995) Stakeholder mismatching: a theoretical problem in empirical research on corporate social performance. Int J Org Anal 3(3):229–267 CrossRef
go back to reference Ye K, Zhang R (2011) Do lenders value corporate social responsibility? Evidence from China. J Bus Ethics 104(2):197–206 CrossRef Ye K, Zhang R (2011) Do lenders value corporate social responsibility? Evidence from China. J Bus Ethics 104(2):197–206 CrossRef
go back to reference You H, Zhang X (2009) Financial disclosure complexity and investor underreaction to 10-K information. Rev Acc Stud 14(4):559–586 CrossRef You H, Zhang X (2009) Financial disclosure complexity and investor underreaction to 10-K information. Rev Acc Stud 14(4):559–586 CrossRef
Metadata
Title
Corporate social responsibility and annual report reading difficulty
Authors
Akhilesh Bajaj
Lori N. K. Leonard
Li Sun
Zhenze Xing
Publication date
03-02-2023
Publisher
Springer US
Published in
Review of Quantitative Finance and Accounting / Issue 4/2023
Print ISSN: 0924-865X
Electronic ISSN: 1573-7179
DOI
https://doi.org/10.1007/s11156-023-01132-9

Other articles of this Issue 4/2023

Review of Quantitative Finance and Accounting 4/2023 Go to the issue