Measuring CSR disclosure when assessing stock market effects

Annika Beelitz, Charles H. Cho, Giovanna Michelon, Dennis M. Patten

    Research output: Contribution to journalArticlepeer-review

    108 Downloads (Pure)

    Abstract

    A growing number of studies use a dichotomous variable indicating the presence of a standalone CSR report to capture impacts of CSR disclosure. Our concern is that, without considering differences in the information provided, such an approach could lead to incorrect inferences regarding those impacts. Accordingly, we extend prior research by examining whether, similar to differences in environmental disclosure, the mere presence of a standalone CSR report mitigates negative market reactions at times of regulatory cost exposure. We focus on the 2011 Fukushima Daiichi disaster and a sample of international utilities with nuclear power generation. Controlling for other factors related to social and regulatory cost exposures, we find only the environmental disclosures appear to reduce negative market effects. We thus argue that, in exploring the impacts of CSR disclosure, researchers need to carefully consider, beyond just the presence of a CSR report, differences in the extent of information being provided.
    Original languageEnglish
    JournalAccounting and the Public Interest
    Early online date25 Mar 2021
    DOIs
    Publication statusE-pub ahead of print - 25 Mar 2021

    Fingerprint

    Dive into the research topics of 'Measuring CSR disclosure when assessing stock market effects'. Together they form a unique fingerprint.

    Cite this