DIFFERENTIAL IMPACT OF CSR DISCLOSURES: THE ROLE OF INFORMATION SOURCE AND FINANCIAL PERFORMANCE

Lei Dong, Y. Ken Wang, Kai Du

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This study examines whether the source from which nonprofessional investors obtain corporate social responsibility (CSR) disclosure influences their investment-related judgments and decisions and whether that influence depends on the company’s financial performance. In an experiment, we find an asymmetrical effect of information source that varies with financial performance. In particular, information source affects investors’ management credibility judgments when the firm announces unfavorable earnings result but not when the announced result is favorable. The mediation analysis reveals that investors’ management credibility judgments mediate the joint effect of information source and financial performance on investors’ investment decisions. Our findings highlight that the effectiveness of CSR communication can be complicated and that investors are sensitive to other factors that exist in the communication setting, such as the context in which CSR is disclosed (contextual factor) and information source of CSR disclosures (attributional factor).

Original languageEnglish (US)
Title of host publicationAdvances in Accounting Behavioral Research
PublisherEmerald Group Holdings Ltd.
Pages183-207
Number of pages25
DOIs
StatePublished - Aug 25 2022

Publication series

NameAdvances in Accounting Behavioral Research
Volume25
ISSN (Print)1475-1488

All Science Journal Classification (ASJC) codes

  • Accounting
  • Management Science and Operations Research

Fingerprint

Dive into the research topics of 'DIFFERENTIAL IMPACT OF CSR DISCLOSURES: THE ROLE OF INFORMATION SOURCE AND FINANCIAL PERFORMANCE'. Together they form a unique fingerprint.

Cite this