Cited by 429Corporate Social Responsibility ReportingAuditing, Earnings Management, GovernanceCorporate Governance and Financial Management

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Real Effects of a Widespread CSR Reporting Mandate: Evidence from the European Union’s CSR Directive

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Fiechter, Peter, Hitz, Joerg-Markus, Lehmann, Nico·2020·SSRN Electronic Journal

Abstract

ABSTRACT We investigate real effects of a widespread corporate social responsibility (CSR) reporting mandate. In 2014, the European Union (EU) passed Directive 2014/95 (hereafter, “CSR Directive”), mandating large listed EU firms to prepare annual nonfinancial reports beginning from fiscal year 2017 onward. We document that firms within the scope of the directive respond by increasing their CSR activities and that they start doing so before the entry‐into‐force of the directive. These real effects are concentrated in firms that are plausibly more strongly affected by the directive, that is, those with previously low levels of both CSR reporting and CSR activities. Using various alternative outcome variables (e.g., new CSR initiatives, improvements in CSR infrastructure, or firm performance), we show that these real effects reflect meaningful increases in CSR beyond firms’ potential attempts to “greenwash” CSR performance. Finally, we conduct tests that increase our confidence that the documented real effects are attributable to the CSR Directive and not general EU trends in CSR.

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  51. Online Appendix A: Entropy balancing matching and unmatched results Online Appendix B: Propensity score matching and covariate balance Online Appendix C: Distribution of the employee count in the pre-and post-regulation period Online Appendix D: Summary statistics
  52. Online Appendix E: Alternative clustering of standard errors
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Metadata

Authors
Fiechter, P., Hitz, J.-M., & Lehmann, N.
Affiliations
  • University of Neuchâtel (CH)
  • Erasmus University Rotterdam (NL)
Corresponding author
Fiechter, Peter
Venue
SSRN Electronic Journal
Publisher
Elsevier BV
Published
2020
Volume
60
Issue
4
Pages
1499-1549
ISSN
  • 0021-8456 (ISSN-L)
  • 1556-5068
OpenAlex
W4212927050
Cited by
429
References
2
Citations by year
2026: 115 · 2025: 129 · 2024: 101 · 2023: 54 · 2022: 15 · 2021: 8 · 2020: 3
FWCI
21.35
Type
journal article
Language
en
Open access
Licence
other-oa
Locations
  • Journal of Accounting Research (publishedVersion, other-oa)
  • SSRN Electronic Journal (publishedVersion)
  • EUR Research Repository (Erasmus University Rotterdam) (publishedVersion, cc-by)
  • EUR Research Repository (Erasmus University Rotterdam) (submittedVersion, cc-by)
  • GoeScholar The Publication Server of the Georg-August-Universität Göttingen (Georg-August-Universität Göttingen) (submittedVersion, other-oa)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
  • Social Sciences › Business, Management and Accounting › Accounting › Auditing, Earnings Management, Governance
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Governance and Financial Management
Keywords
corporate social responsibility, non-financial reporting, greenwashing, CSR practices, listed companies, regulatory compliance

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