Does corporate social responsibility reporting enhance shareholders’ value? A simultaneous equation approach

Article

Rashid, Afzalur. 2018. "Does corporate social responsibility reporting enhance shareholders’ value? A simultaneous equation approach." Journal of Financial Reporting and Accounting. 16 (1), pp. 158-178. https://doi.org/10.1108/JFRA-10-2016-0084
Article Title

Does corporate social responsibility reporting enhance shareholders’ value? A simultaneous equation approach

ERA Journal ID41128
Article CategoryArticle
Authors
AuthorRashid, Afzalur
Journal TitleJournal of Financial Reporting and Accounting
Journal Citation16 (1), pp. 158-178
Number of Pages21
Year2018
Place of PublicationUnited Kingdom
ISSN1985-2517
2042-5856
Digital Object Identifier (DOI)https://doi.org/10.1108/JFRA-10-2016-0084
Web Address (URL)https://www.emerald.com/insight/content/doi/10.1108/JFRA-10-2016-0084/full/html
Abstract

Purpose – This study aims to examine whether corporate social responsibility (CSR) and relevant reporting enhances firms’ economic performance among the listed firms in Bangladesh.

Design/methodology/approach – This study uses a content analysis to examine specific CSR-related attributes from 115 non-financial publicly listed firms in Bangladesh. Firm CSR reporting is evaluated against accounting and market performance measures, with a simultaneous equation approach used to control the potential endogeneity problem.

Findings – This study finds that CSR reporting significantly influences firm performance under both performance measures, although a firm’s economic performance does not influence CSR reporting.

Research limitations/implications – This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process.

Practical implications – The findings imply that although CSR reporting by firms in Bangladesh is discretionary in nature, the ones that report add value to their firm.

Originality/value – This study contributes to the literature on the practices of CSR reporting in the context of the developing countries.

Keywordsperformance, CSR, stakeholder theory, content analysis, legitimacy theory, instrumental stakeholder theory
Contains Sensitive ContentDoes not contain sensitive content
ANZSRC Field of Research 2020350107. Sustainability accounting and reporting
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Byline AffiliationsSchool of Commerce
Institution of OriginUniversity of Southern Queensland
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