The impact of introducing new regulations on the quality of CSR reporting: evidence from the UK

Ruba Subhi Hamed, Basiem Khalil Al-Shattarat, Wasim Al-Shattarat, Khaled Hussainey

    Research output: Contribution to journalArticlepeer-review

    75 Downloads (Pure)

    Abstract

    This study examines the adoption of mandatory corporate social responsibility (CSR) regulation in the United Kingdom (UK). Specifically, we investigate whether adopting new CSR regulations impacts the quality of firms’ CSR reporting and explore whether that quality depends on a firms’ characteristics. Our empirical results suggest that the UK’s mandatory CSR reporting regulation significantly enhances CSR reporting quality. We further find that firms’ characteristics, particularly corporate governance and firm size, improve mandatory CSR reporting quality. Our results are robust to the use of an alternative proxy of CSR quality assessment and testing for endogeneity. These findings suggest that committing to CSR can substantially benefit stakeholders, who will be better informed regarding the firms’ CSR performance through improved reporting quality. This factor can influence investors’ beliefs and market valuations, which may subsequently guide firms’ investment decisions.
    Original languageEnglish
    Article number100444
    Number of pages19
    JournalJournal of International Accounting, Auditing and Taxation
    Volume46
    Early online date25 Jan 2022
    DOIs
    Publication statusPublished - 1 Mar 2022

    Keywords

    • mandatory CSR
    • firm characteristics
    • corporate governance
    • high and low CSR quality

    Fingerprint

    Dive into the research topics of 'The impact of introducing new regulations on the quality of CSR reporting: evidence from the UK'. Together they form a unique fingerprint.

    Cite this