Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5086681 | Journal of Accounting and Economics | 2015 | 17 Pages |
Abstract
We document that corporate social responsibility (“CSR”) expenditures are not a form of corporate charity nor do they improve future financial performance. Rather, firms undertake CSR expenditures in the current period when they anticipate stronger future financial performance. We show that the causality of the positive association between CSR expenditures and future firm performance differs from what is claimed in the vast majority of the literature and that corporate accountability reporting is another channel through which outsiders may infer insiders' private information about firms' future financial prospects.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Thomas Lys, James P. Naughton, Clare Wang,