Mandatory CSR Disclosure and its Insurance Effect: Evidence from China
China Securities Regulatory Commission (CRSC) requires listed companies to issue CSR report mandatorily from 2008. To examine the effect of mandatory CSR disclosure, we adopt the PSM-DID introduced by the mandatory requirements. We find that mandatory disclosure reduces stock return and increases s...
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| Format: | Article |
| Language: | English |
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EconJournals
2020-11-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/10657 |
| _version_ | 1797921565279518720 |
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| author | Xinmeng He Antai Li Keda Zhu |
| author_facet | Xinmeng He Antai Li Keda Zhu |
| author_sort | Xinmeng He |
| collection | DOAJ |
| description |
China Securities Regulatory Commission (CRSC) requires listed companies to issue CSR report mandatorily from 2008. To examine the effect of mandatory CSR disclosure, we adopt the PSM-DID introduced by the mandatory requirements. We find that mandatory disclosure reduces stock return and increases stock volatility. We further investigate the insurance effect of CSR. After the requirement changes, firms are more regulates its behavior by reducing violation cost in the stock market and increasing environmental protection expenditure, especially in State-Owned Enterprises. It indicates that Insurance Effect of CSR can serve a good role in building a social and environmentally friendly society despite mandatory CSR disclosure hampers its financial performance.
Keywords: Corporate social responsibility; Insurance effect; Mandatory disclosure.
JEL Classifications: G14; G18; G38; L78
DOI: https://doi.org/10.32479/ijefi.10657
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| first_indexed | 2024-04-10T14:17:34Z |
| format | Article |
| id | doaj.art-7d1e0a915ba041c291a5784cb08f9141 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:17:34Z |
| publishDate | 2020-11-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-7d1e0a915ba041c291a5784cb08f91412023-02-15T16:09:28ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382020-11-01106Mandatory CSR Disclosure and its Insurance Effect: Evidence from ChinaXinmeng He0Antai Li1Keda Zhu2School of Management, Huazhong University of Science and TechnologySchool of Management, Huazhong University of Science and TechnologySchool of Finance, Shanghai University of Finance and Economics China Securities Regulatory Commission (CRSC) requires listed companies to issue CSR report mandatorily from 2008. To examine the effect of mandatory CSR disclosure, we adopt the PSM-DID introduced by the mandatory requirements. We find that mandatory disclosure reduces stock return and increases stock volatility. We further investigate the insurance effect of CSR. After the requirement changes, firms are more regulates its behavior by reducing violation cost in the stock market and increasing environmental protection expenditure, especially in State-Owned Enterprises. It indicates that Insurance Effect of CSR can serve a good role in building a social and environmentally friendly society despite mandatory CSR disclosure hampers its financial performance. Keywords: Corporate social responsibility; Insurance effect; Mandatory disclosure. JEL Classifications: G14; G18; G38; L78 DOI: https://doi.org/10.32479/ijefi.10657 https://www.econjournals.com/index.php/ijefi/article/view/10657 |
| spellingShingle | Xinmeng He Antai Li Keda Zhu Mandatory CSR Disclosure and its Insurance Effect: Evidence from China International Journal of Economics and Financial Issues |
| title | Mandatory CSR Disclosure and its Insurance Effect: Evidence from China |
| title_full | Mandatory CSR Disclosure and its Insurance Effect: Evidence from China |
| title_fullStr | Mandatory CSR Disclosure and its Insurance Effect: Evidence from China |
| title_full_unstemmed | Mandatory CSR Disclosure and its Insurance Effect: Evidence from China |
| title_short | Mandatory CSR Disclosure and its Insurance Effect: Evidence from China |
| title_sort | mandatory csr disclosure and its insurance effect evidence from china |
| url | https://www.econjournals.com/index.php/ijefi/article/view/10657 |
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