Journal of Current Research in Global Business
corporate, social responsibility, earnings reporting
Accounting | Business | Finance and Financial Management
Despite increasing interests on corporate social responsibility (CSR) activities among managers, the relationship between CSR and firm value through earnings reporting quality is still unclear. Absence of a strong positive effect of CSR on firm value has led researchers to believe that CSR is a res ult of a principal-agent issue between shareholders and managers. This study argues CSR represents a corporate culture that influences how a corporation reports its earnings. CSR influ ences earnings reporting ·instead ofearnings reporting drives CSR to delude shareholders. CSR induces better earnings reporting quality, therefore, CSR has an indirect but positive effect on firm value.
Mary F. Calegari, T. Chotigeat, and M. A. Harjoto. "Corporate Social Responsibility and Earnings Reporting" Journal of Current Research in Global Business 13.20 (2010): 1-14.