Journal Article

Consequences of CSR reporting regulations worldwide: a review and research agenda

Haji, Abdifatah Ahmed, Coram, Paul, Troshani, Indrit

2023

Overview

PurposeThis study reviews research that examines economic and behavioural consequences of CSR reporting regulations. Specifically, the authors evaluate the impact of CSR reporting regulations on (1) reporting quality, (2) capital-markets and (3) firm behaviour.Design/methodology/approachThe authors first describe the stated objectives and enforcement level of CSR reporting regulations around the world. Second, the authors review over 130 archival studies in accounting, finance, economics, law and management that examine consequences of the regulations.FindingsThe stated objectives and enforcement of CSR reporting regulations vary considerably across countries. Empirical research finds no significant changes in reporting quality and generally concludes that CSR reporting continues to be ceremonial rather than substantive after the regulations – consistent with corporate legitimation and “greenwashing” views. In contrast, growing evidence shows both positive and negative capital-market and real effects of the regulations. Overall, the findings from this review indicate that, on balance, there remains a significant number of questions on the net effects of CSR reporting regulations.Originality/valueThe authors offer a comprehensive review of the literature examining consequences of CSR reporting regulations. The authors identify apparent tensions in studies assessing different outcomes after the regulations: between symbolic reporting and positive capital-market outcomes; between profitability and CSR; and between CSR and the welfare of non-shareholder groups. Additionally, we highlight differences in the scope and stated objectives of CSR regulations across countries, with the regulations often reflecting socio-economic development and national interests of implementing countries. Collectively, our review indicates that institutional details are crucial when considering the design or consequences of CSR reporting regulations and/or standards.

• Publisher: Emerald Publishing Limited,Emerald Group Publishing Limited
• Subject: Accountability / Accounting / Capital / Capital markets / Disclosure / Economic development / Economic research / Economics / Efficient markets / Enforcement / Finance / Financial reporting / Greenwashing / Legitimacy / Legitimation / Literature reviews / Markets / Objectives / Offshore / Profitability / Quality standards / Regulation / Regulation of financial institutions / Research methodology / Social responsibility / Socioeconomic development / Socioeconomic factors / Stakeholders / Stockholders / Sustainability / Sustainability management / Welfare / Writers