Faculty Publications
The Interactive Effects of Strategy Communication and Report Integration on Investors' Reactions to Corporate Social Responsibility Measures
Document Type
Article
Keywords
Causal reasoning, Connectivity of information, Corporate social responsibility, Integrated report, Mindset effect, Strategy information
Journal/Book/Conference Title
Advances in Accounting
Volume
68
Abstract
This study examines nonprofessional investors' reactions to two important factors underlying the disclosure of corporate social responsibility (CSR) measures: report integration and strategy communication. We find that CSR measures in an integrated report appear to affect nonprofessional investors less than CSR measures in a standalone report. Providing strategy communication that conveys CSR strategic objectives and a causal connection between CSR performance and financial performance promotes investors' incorporation of CSR measures into their judgments and decisions. Together, report integration and CSR strategy communication interact to affect investment judgments and decisions, such that the weakened effect of CSR measures in an integrated report is less pronounced when CSR strategy communication is present than when CSR strategy communication is absent. As the interest in CSR reports continues to grow among investors, preparers, auditors, standard setters, regulators, and researchers, this study highlights the interplay between strategy communication and report integration in CSR disclosures.
Department
Department of Accounting
Original Publication Date
11-27-2024
DOI of published version
10.1016/j.adiac.2024.100784
Recommended Citation
Wang, Lei and Dong, Lei, "The Interactive Effects of Strategy Communication and Report Integration on Investors' Reactions to Corporate Social Responsibility Measures" (2024). Faculty Publications. 6752.
https://scholarworks.uni.edu/facpub/6752
