Can Mandatory Disclosure of CSR Information Drive the Transformation of Firms towards High-Quality Development?

Rong Xu, Yongze Cui, Qi Ban (), Yang Xie () and Xiaoyun Fan
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Rong Xu: School of Finance, Nankai University, Tianjin 300350, China
Yongze Cui: School of Economics and Management, Shanxi Normal University, Taiyuan 030031, China
Qi Ban: Postdoctoral Station of Applied Economics, Fudan University, Shanghai 200433, China
Yang Xie: School of Economics and Management, Southwest University, Chongqing 400715, China
Xiaoyun Fan: School of Finance, Nankai University, Tianjin 300350, China

Sustainability, 2024, vol. 16, issue 10, 1-21

Abstract: This paper establishes a quasi-natural experiment grounded in the exogenous shock occasioned by the implementation of a compulsory corporate social responsibility (CSR) information disclosure policy. It investigates the ramifications of this mandated CSR information disclosure policy on firms’ total factor productivity (TFP) through the integration of the difference-in-differences (DID) methodology. The investigation reveals that obligatory disclosure of CSR information significantly augments firms’ total factor productivity (TFP) by mitigating agency conflicts and financial constraints. Further analysis elucidates investment efficiency and innovation enhancement as pivotal conduits through which the mandatory CSR information disclosure policy fosters firms’ TFP. The study explores the impact of mandatory CSR information disclosure on firms’ TFP mechanism, which has significant policy value and can provide useful reference for the high-standard development of China’s corporate economic transformation.

Keywords: mandatory CSR disclosure; TFP; agency conflicts; financing constraints (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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