# The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China

“The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China” (2017), by Yi‐Chun Chen et al. Business and Management research paper. Original abstract below, unchanged. No free PDF was found.

- Authors: Yi‐Chun Chen, Mingyi Hung, Yongxiang Wang
- Published: November 21, 2017
- Field: Business and Management
- DOI: https://doi.org/10.1016/j.jacceco.2017.11.009
- Source: https://doi.org/10.1016/j.jacceco.2017.11.009

## Abstract

We examine how mandatory disclosure of corporate social responsibility (CSR) impacts firm performance and social externalities. Our analysis exploits China's 2008 mandate requiring firms to disclose CSR activities, using a difference-in-differences design. Although the mandate does not require firms to spend on CSR, we find that mandatory CSR reporting firms experience a decrease in profitability subsequent to the mandate. In addition, the cities most impacted by the disclosure mandate experience a decrease in their industrial wastewater and SO2 emission levels. These findings suggest that mandatory CSR disclosure alters firm behavior and generates positive externalities at the expense of shareholders.

Canonical page: https://nerdi.pages.dev/paper/W2770116749
Read three real papers a day in Nerdi (iPhone): https://apps.apple.com/app/apple-store/id6813826387?pt=128757794&ct=web-paper&mt=8