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Can Mandatory Disclosure of CSR Information Drive the Transformation of Firms towards High-Quality Development?

Author

Listed:
  • Rong Xu

    (School of Finance, Nankai University, Tianjin 300350, China
    This author contributed equally to this work.)

  • Yongze Cui

    (School of Economics and Management, Shanxi Normal University, Taiyuan 030031, China
    This author contributed equally to this work.)

  • Qi Ban

    (Postdoctoral Station of Applied Economics, Fudan University, Shanghai 200433, China
    Postdoctoral Research Station of Guangxi Beibu Gulf Bank, Nanning 530000, China)

  • Yang Xie

    (School of Economics and Management, Southwest University, Chongqing 400715, China)

  • Xiaoyun Fan

    (School of Finance, Nankai University, Tianjin 300350, China)

Abstract

This paper establishes a quasi-natural experiment grounded in the exogenous shock occasioned by the implementation of a compulsory corporate social responsibility (CSR) information disclosure policy. It investigates the ramifications of this mandated CSR information disclosure policy on firms’ total factor productivity (TFP) through the integration of the difference-in-differences (DID) methodology. The investigation reveals that obligatory disclosure of CSR information significantly augments firms’ total factor productivity (TFP) by mitigating agency conflicts and financial constraints. Further analysis elucidates investment efficiency and innovation enhancement as pivotal conduits through which the mandatory CSR information disclosure policy fosters firms’ TFP. The study explores the impact of mandatory CSR information disclosure on firms’ TFP mechanism, which has significant policy value and can provide useful reference for the high-standard development of China’s corporate economic transformation.

Suggested Citation

  • Rong Xu & Yongze Cui & Qi Ban & Yang Xie & Xiaoyun Fan, 2024. "Can Mandatory Disclosure of CSR Information Drive the Transformation of Firms towards High-Quality Development?," Sustainability, MDPI, vol. 16(10), pages 1-21, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:10:p:4042-:d:1392998
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    References listed on IDEAS

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