The Disclosure Quality of the CSR Report: Determinants and Its Relationship with Firm Performance
Date Issued
2015
Date
2015
Author(s)
Chen, Yu-Wei
Abstract
The increasing popularity of corporate social responsibility (CSR) during the past few years has made it a trend that companies start to publish their CSR reports. CSR reports are acted as important resources for stakeholders to evaluate business potential risks and profitability. The thesis aims at discovering what incentivizes publicly traded companies in Taiwan to publish CSR reports and to enhance its disclosure quality. The correlation of publication and the disclosure quality of reports with CSR and financial performance is also the main focus in this thesis. The empirical researches reveal that the most important reasons for companies to publish reports are to respond the request of key stakeholders (i.e. foreign investors and employees) and the publication rate of CSR reports in the industry. The external pressure assists the publication willingness and disclosure quality. The following reason is attributable to the quality of corporate governance (board size, appointment of independent directors and non-family firms). In contrast, deviation of control rights from cash flow of shareholders can have negative impact. Moreover, empirical studies indicate that CSR reports following the Global Reporting Initiative (GRI) guidelines or endorsed by independent agency are positively correlated with CSR performance which can contribute to higher of the disclosure quality. However, CSR reports not following GRI guidelines do not show any significant correlation with CSR performance. Lastly, the research evidence also shows that publication of CSR reports has no significant correlation with the current financial performance (EBITDA return on assets and average sales per employee).
Subjects
Corporate Social Responsibility (CSR)
CSR Report
Sustainability Report
Disclosure Quality
CSR Performance
Financial Performance
SDGs
Type
thesis
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