Determinants and consequences of voluntary corporate social responsibility disclosure: Evidence from private firms

Wuchun Chi, Shing-Jen Wu and Zhen Zheng

The British Accounting Review, 2020, vol. 52, issue 6

Abstract: We examine whether and how private firms differ from public firms in determining corporate social responsibility (CSR) disclosure policies. We document that private firms are less likely to issue CSR reports compared with their public peers. Adopting a bivariate probit model that accommodates partial observability, we find that the effect is mainly driven by a supply-side force rather than a demand-side force. From a debtholder-oriented perspective, while public firms enjoy more favorable credit ratings and a lower cost of debt due to CSR disclosure, private firms do not reap similar benefits from CSR disclosure. Corporate governance and CSR assurance alleviate debtholders' concern on private firms’ engagements in CSR.

Keywords: Corporate social responsibility (CSR) disclosure; Private firms; Demand and supply of CSR disclosure; Credit ratings; Cost of debt (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bracre:v:52:y:2020:i:6:s0890838920300597

DOI: 10.1016/j.bar.2020.100939

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