Does corporate social responsibility reporting enhance shareholders’ value? A simultaneous equation approach

Rashid, Afzalur (2018) Does corporate social responsibility reporting enhance shareholders’ value? A simultaneous equation approach. Journal of Financial Reporting and Accounting, 16 (1). pp. 158-178. ISSN 1985-2517


Abstract

Purpose – This study aims to examine whether corporate social responsibility (CSR) and relevant reporting enhances firms’ economic performance among the listed firms in Bangladesh.

Design/methodology/approach – This study uses a content analysis to examine specific CSR-related attributes from 115 non-financial publicly listed firms in Bangladesh. Firm CSR reporting is evaluated against accounting and market performance measures, with a simultaneous equation approach used to control the potential endogeneity problem.

Findings – This study finds that CSR reporting significantly influences firm performance under both performance measures, although a firm’s economic performance does not influence CSR reporting.

Research limitations/implications – This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process.

Practical implications – The findings imply that although CSR reporting by firms in Bangladesh is discretionary in nature, the ones that report add value to their firm.

Originality/value – This study contributes to the literature on the practices of CSR reporting in the context of the developing countries.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version, in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Date Deposited: 17 Mar 2020 04:42
Last Modified: 27 Mar 2020 04:59
Uncontrolled Keywords: performance, CSR, stakeholder theory, content analysis, legitimacy theory, instrumental stakeholder theory
Fields of Research : 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150106 Sustainability Accounting and Reporting
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
Identification Number or DOI: 10.1108/JFRA-10-2016-0084
URI: http://eprints.usq.edu.au/id/eprint/37854

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