Donghua University

About: Donghua University is a education organization based out in Shanghai, China. It is known for research contribution in the topics: Fiber & Nanofiber. The organization has 21155 authors who have published 21841 publications receiving 393091 citations. The organization is also known as: Dōnghuá Dàxué & China Textile University.

Determinants and Economic Consequences of Nonfinancial Disclosure Quality

Abstract: This paper examines the determinants and economic consequences of nonfinancial disclosure quality, which is measured according to the ratings of corporate social responsibility (CSR) disclosure provided by the Ministry of Economic Affairs in the Netherlands. We find that firms with better CSR performance, greater external financing needs, and stronger corporate governance tend to provide higher quality CSR disclosures. In return, these firms gain greater analyst coverage, higher levels of institutional ownership, greater stock liquidity, higher valuations in SEOs, and lower yields to maturity in bond issuances. These benefits apply largely to firms with strong CSR performance. Collectively, our findings suggest that higher quality CSR disclosures deliver economic benefits.