Corporate social responsibility reporting: meeting stakeholders expectations or efficient allocation of resources?

Afzalur Rashid

International Journal of Accounting & Information Management, 2020, vol. 29, issue 2, 280-304

Abstract: Purpose - This study aims to examine whether corporate social responsibility (CSR) reporting adds any value to the firm. Design/methodology/approach - This study uses content analysis to capture the specific CSR-related attributes and to construct a CSR reporting index. The data is manually collected from 115 publicly listed firms on the Dhaka Stock Exchange. The companies audited financial statements were the source of data. This study uses an ordinary least square regression analysis to examine the relationship between CSR reporting and firm performance. Findings - The results of this study show that firms’ involvement in CSR activities and related reporting has a significant positive influence on firm performance only under an accounting-based performance measure. However, firms’ involvement in CSR activities and related reporting has a significant negative influence on firm performance under a market-based performance measure. 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 of this study imply that firms may be involved in CSR reporting to meet the stakeholders’ expectations, CSR reporting does not necessarily increase the intrinsic value of the firm. Originality/value - This study supports the stakeholder theory and contributes to the literature on the practices of CSR reporting in the context of developing countries.

Keywords: Performance; CSR; Stakeholder theory; Content analysis; Legitimacy theory; Instrumental stakeholder theory (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijaimp:ijaim-09-2020-0150

DOI: 10.1108/IJAIM-09-2020-0150

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