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.

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

Share

COinS
 
Jul 10th, 2:15 PM Jul 10th, 3:15 PM

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.

http://digitalcommons.tacoma.uw.edu/clsr_academic/2015/pres/8