Corporate Social Responsibility Disclosure and the Value of Cash Holdings

Louise Yi Lu*, Greg Shailer, Yangxin Yu

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    75 Citations (Scopus)

    Abstract

    This study investigates whether corporate social responsibility (CSR) reports mitigate the value destruction associated with increases in cash holdings. We find that the issuance of a standalone CSR report increases the marginal value of cash holdings and this effect is more pronounced for firms in a less transparent information environment and for firms with weaker external monitoring. Our results suggest that information in CSR reports can facilitate monitoring and thus induce more efficient use of cash holdings.

    Original languageEnglish
    Pages (from-to)729-753
    Number of pages25
    JournalEuropean Accounting Review
    Volume26
    Issue number4
    DOIs
    Publication statusPublished - 2 Oct 2017

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