Does corporate social responsibility matter to management forecast precision? Evidence from China
Bibliographic Data
| ID | 15066735 |
|---|---|
| Authors | Xiangyu Chen (0000-0002-4514-2067, Zhejiang University of Finance and Economics), Paulina Wan (0000-0002-9300-3416, Zhejiang Gongshang University, corresponding author), Xiaofeng Quan (0000-0002-7008-7901, Dongwu Business School & Jiangsu Modern Finance Research Base, Soochow University, Suzhou, China), Muhammad Safdar Sial (0000-0002-5473-8882, Department of Management Sciences, COMSATS University Islamabad (CUI), Islamabad, Pakistan) |
| Year | 2020 |
| Volume | 33 |
| Issue | 1 |
| Pages | 1767-1795 |
| Publication date | 2020-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economic Research-Ekonomska Istraživanja (JOURNAL) |
| Journal identifiers | ISSN: 1331-677X • E-ISSN: 1848-9664 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/1331677x.2020.1761420 |
| OpenAlex | W3024558208 |
| Language | EN |
| Citations received | 1 |
| References cited | 94 |
This article investigates whether socially responsible companies differ from other firms in the quality of earnings forecasts issued by management. Specifically, using 5192 earnings forecast observations of 669 Chinese listed companies from 2010 to 2016, we examine whether companies that perform better in corporate social responsibility (CSR) still provide higher-precision management earnings forecasts compared with companies with poor CSR performance, thereby presenting an image of transparent and accountable disclosures. Through empirical research, this paper finds that CSR is positively associated with management forecast precision. This result is robust to using alternative measures of CSR, considering mandatory disclosure sample and voluntary disclosure sample, and controlling for potential endogeneity concern by adopting the instrumental variable method. Furthermore, we find the relationship between CSR and management forecast precision is stronger in non-state-owned firms. Our findings suggest that socially responsible companies will comply with higher ethical standards and hence maintain their well-established social reputation by disclosing high-quality earnings forecasts, which lends support to the transparent forecast hypothesis. This paper enriches the existing studies regarding the economic consequences of CSR and adds empirical evidence from emerging markets
Business · China · Corporate social responsibility · Earnings · Earnings Management · Econometrics · Economics · Empirical evidence · Empirical research · Endogeneity · Instrumental variable · Public relations · Reputation · Social responsibility · Auditing, Earnings Management, Governance · Corporate Social Responsibility Reporting · Environmental Sustainability in Business · Accounting
Strategic Management
What Determines Corporate Transparency?
Managers' Personal Values as Drivers of Corporate Social Responsibility
The relationship between corporate social responsibility and shareholder value
Corporate Social Responsibility and Investment Efficiency
A Theory of Self-Enforcing Agreements
The effects of government ownership on bank lending
Corporate responsibility and financial performance
Doing Better at Doing Good
Community isomorphism and corporate social action
Corporate social responsibility and stock price crash risk
A Meta-Analytic Review of Corporate Social Responsibility and Corporate Financial Performance
The Relationship Between Corporate Philanthropy And Shareholder Wealth
The role of board gender and foreign ownership in the CSR performance of Chinese listed firms
Corporate Social Performance and Organizational Attractiveness to Prospective Employees.
Can Business Afford to Ignore Social Responsibilities?
Corporate Social Responsibility Reporting in China
The effects of corporate social responsibility on consumer loyalty through consumer perceived value
Corporate Social and Financial Performance
Corporate Social Responsibility Theories
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,2 |
| Citation span | 2021 - 2021 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |