Do socially responsible managers forecast sales more accurately?

Panagiotis Chronopoulos

Journal of Financial Reporting and Accounting, 2021, vol. 20, issue 3/4, 734-752

Abstract: Purpose - This paper aims to examine whether corporate social responsibility (CSR) is related to management sales forecast accuracy. Design/methodology/approach - Use KLD measures of corporate responsibility combined with forecast accuracy regression model, including controls for management skills and expertise. Findings - Socially responsible firms commit forecast errors of lower magnitude and sales forecast accuracy is positively related to the level of CSR. Research limitations/implications - A strong motive for research on the field of CSR topic under the scope of reporting quality. Future research could focus on alternative measures of CSR; such as announcements included into the financial statements or separately disclosed expenses. Examine the magnitude of confirmed relation, among different economies worldwide. Practical implications - CSR effect on manager sales forecasting activity, highlight the impact of brand awareness and customer loyalty, as created by implementing CSR strategies, on firm growth and sales expansion. Social implications - The research enhances the era towards more socially responsible firms, presenting evidence of such an adoption on corporate fundamentals. Originality/value - To the knowledge there is no prior research examining the implications of CSR on sales forecast accuracy.

Keywords: Corporate social responsibility; Sales forecasts; Managerial ability; Forecast accuracy; Social responsibility (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrapp:jfra-07-2020-0206

DOI: 10.1108/JFRA-07-2020-0206

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