Voluntary Disclosure and Market Valuation of Sustainability Reports in Korea: The Case of Chaebols

Dongheun Lee, Sejoong Lee and Na-Eun Cho
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Dongheun Lee: College of Global Business, Korea University, 2511 Sejong-ro, Sejong 30019, Korea
Sejoong Lee: College of Business Administration, University of Seoul, 163 Seoulsiripdaero, Dongdaemun-gu, Seoul 02504, Korea
Na-Eun Cho: College of Business, Hongik University, 94 Wausan-ro, Mapogu, Seoul 04066, Korea

Sustainability, 2019, vol. 11, issue 13, 1-20

Abstract: This paper investigates whether chaebol firms tend to issue corporate social responsibility (CSR) reports more than non-chaebol firms. Based on previous studies documenting chaebols’ tunneling activities at the expense of other shareholders, we anticipate that chaebol firms are more likely to voluntarily disclose their CSR reports even if investors may discount their values because CSR disclosure is an effective means of window dressing. The empirical results support our expectations. We find that chaebol firms are more likely to disclose CSR reports and a chaebol firm’s CSR report disclosure is less evaluated than a non-chaebol firm in the capital market. The result indicates that even if CSR report disclosure may have positive effect on firm value in general, investors may discount the value of chaebol firms’ CSR reports.

Keywords: corporate social responsibility; sustainability report; chaebol; firm value (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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