Corporate social responsibility reporting: meeting stakeholders expectations or efficient allocation of resources?

Rashid, Afzalur (2021) Corporate social responsibility reporting: meeting stakeholders expectations or efficient allocation of resources? International Journal of Accounting & Information Management, 29 (2). pp. 280-304. ISSN 1834-7649


Abstract

Purpose: This study examines whether corporate social responsibility (CSR) reporting adds any value to the firm.

Design/Methodology/Approach: This study employs a content analysis to capture the specific Corporate Social Responsibility (CSR)-related attributes and to construct a CSR reporting index. The data is manually collected from 115 publicly listed firms on Dhaka Stock Exchange. The companies audited financial statements were the source of data. This study uses an Ordinary Least Square Regression analysis to examine the relationship between CSR reporting and firm performance.

Findings: The results of this study show that firms’ involvement in CSR activities and related reporting has a significant positive influence on firm performance only under an accounting-based performance measure. However, firms’ involvement in CSR activities and related reporting has a significant negative influence on firm performance under a market-based performance measure.

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

Practical Implications: The findings of this study imply that, firms may be involved in CSR reporting to meet the stakeholders’ expectations, CSR reporting do not necessarily increase the intrinsic value of the firm.

Originality/Value: This study supports the stakeholder theory and contributes to the literature on the practices of corporate social responsibility reporting in the context of developing countries.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Date Deposited: 17 Jan 2021 23:41
Last Modified: 18 May 2021 03:52
Uncontrolled Keywords: Content analysis, CSR, Performance, Legitimacy Theory, Stakeholder Theory, Instrumental Stakeholder Theory
Fields of Research (2008): 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150106 Sustainability Accounting and Reporting
Fields of Research (2020): 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3501 Accounting, auditing and accountability > 350107 Sustainability accounting and reporting
Socio-Economic Objectives (2008): E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
Socio-Economic Objectives (2020): 19 ENVIRONMENTAL POLICY, CLIMATE CHANGE AND NATURAL HAZARDS > 1901 Adaptation to climate change > 190199 Adaptation to climate change not elsewhere classified
Identification Number or DOI: https://doi.org/10.1108/IJAIM-09-2020-0150
URI: http://eprints.usq.edu.au/id/eprint/40530

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