Location
University of Washington Tacoma
Event Website
http://www.tacoma.uw.edu/node/37078
Start Date
10-7-2015 2:15 PM
End Date
10-7-2015 3:15 PM
Description
Abstract:
Using a survey-based experiment, we investigate whether corporate social responsibility (CSR) disclosures can influence perceptions of corporate reputation and if these perceptions affect investors’ assessment of firms as attractive investments. After viewing CSR disclosures, participants were asked how they perceived the subject firm as a potential investment, and also how they assessed the firm’s reputation. Specifically, the subject firm’s CSR disclosure was manipulated to include either all-positive performance information or mixed information reporting that some CSR goals are not being achieved. A second manipulation divided disclosures into those that were based on information assured by a third-party and those that were not assured. Current MBA alumni and MBA students from an AACSB-accredited university were surveyed. The results supported the usefulness of assurance in promoting a positive firm image, particularly when only positive CSR performance information is reported. The effect of perceived corporate reputation on investment attractiveness was also found to be significant. Together, the findings suggest that when CSR disclosures are assured, they can positively influence investors’ assessments of corporate reputation, which in turn leads to greater investment attractiveness.
Key Words: Corporate social responsibility, sustainability, voluntary disclosure, corporate reputation, investor judgements, assurance, Global Reporting Initiative.
The Moderating Effect of Third-Party Assurance on the Relationship Between CSR Disclosure and Investor Judgments
University of Washington Tacoma
Abstract:
Using a survey-based experiment, we investigate whether corporate social responsibility (CSR) disclosures can influence perceptions of corporate reputation and if these perceptions affect investors’ assessment of firms as attractive investments. After viewing CSR disclosures, participants were asked how they perceived the subject firm as a potential investment, and also how they assessed the firm’s reputation. Specifically, the subject firm’s CSR disclosure was manipulated to include either all-positive performance information or mixed information reporting that some CSR goals are not being achieved. A second manipulation divided disclosures into those that were based on information assured by a third-party and those that were not assured. Current MBA alumni and MBA students from an AACSB-accredited university were surveyed. The results supported the usefulness of assurance in promoting a positive firm image, particularly when only positive CSR performance information is reported. The effect of perceived corporate reputation on investment attractiveness was also found to be significant. Together, the findings suggest that when CSR disclosures are assured, they can positively influence investors’ assessments of corporate reputation, which in turn leads to greater investment attractiveness.
Key Words: Corporate social responsibility, sustainability, voluntary disclosure, corporate reputation, investor judgements, assurance, Global Reporting Initiative.
https://digitalcommons.tacoma.uw.edu/clsr_academic/2015/pres/8
Comments
Co-Author: Bernard Wong-On-Wing
Professor of Accounting, Washington State University
wow@wsu.edu
Todd Hall Room 242
PO Box 644729
Pullman, WA 99164-4729