Journal ArticleDOI
Nonfinancial Disclosure and Analyst Forecast Accuracy: International Evidence on Corporate Social Responsibility Disclosure
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In this article, the authors examined the relationship between disclosure of nonfinancial information and analyst forecast accuracy using firm-level data from 31 countries and found that the issuance of standalone corporate social responsibility (CSR) reports is associated with lower analyst forecast error.Abstract:
We examine the relationship between disclosure of nonfinancial information and analyst forecast accuracy using firm-level data from 31 countries. We use the issuance of standalone corporate social responsibility (CSR) reports to proxy for disclosure of nonfinancial information. We find that the issuance of standalone CSR reports is associated with lower analyst forecast error. This relationship is stronger in countries that are more stakeholder-oriented — i.e., in countries where CSR performance is more likely to affect firm financial performance. The relationship is also stronger for firms and countries with more opaque financial disclosure, suggesting that issuance of standalone CSR reports plays a role complementary to financial disclosure. These results hold after we control for various factors related to firm financial transparency and other potentially confounding institutional factors. Collectively, our findings have important implications for academics and practitioners in understanding the function of CSR disclosure in financial markets.read more
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A Review of Archival Auditing Research
Mark L. DeFond,Jieying Zhang +1 more
TL;DR: In this article, the authors define higher audit quality as greater assurance of high financial reporting quality, and they provide a framework for systematically evaluating their unique strengths and weaknesses, including the role of auditor and client competency in driving audit quality.
Journal ArticleDOI
Voluntary environmental disclosure quality and firm value: Further evidence
TL;DR: In this paper, the authors examined the relationship between the quality of a firm's voluntary environmental disclosure and its expected future cash flows and the cost of equity, and found that the type and nature of the environmental disclosure is informative in establishing the predicted relations.
Journal ArticleDOI
The Effect of Mandatory CSR Disclosure on Firm Profitability and Social Externalities: Evidence from China
TL;DR: In this paper, the authors examine how mandatory disclosure of corporate social responsibility impacts firm performance and social externalities and find that mandatory CSR reporting firms experience a decrease in profitability subsequent to the mandate.
Journal ArticleDOI
CSR reporting practices and the quality of disclosure: An empirical analysis
TL;DR: In this paper, the authors investigate the use of three reporting practices: stand-alone reports, assurance, and reporting guidance in relation to disclosure proxies that capture the quality of disclosure along three complementary dimensions: the content of the information disclosed, the type of information used to describe and discuss CSR issues, and the managerial orientation.
Journal ArticleDOI
The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research
Christian Leuz,Peter D. Wysocki +1 more
TL;DR: The authors discusses the empirical literature on the economic consequences of disclosure and financial reporting regulation (including IFRS adoption), drawing on U.S. and international evidence, highlighting the challenges with quantifying regulatory costs and benefits, measuring disclosure and reporting outcomes, and drawing causal inferences from regulatory studies.
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