Cross-border regulatory cooperation and corporate social responsibility reporting

Research output: Contribution to journalArticlepeer-review

Abstract

This study investigates the impact of the SEC’s regulatory cooperation and enforcement on the corporate social responsibility (CSR) reporting practices of U.S.-listed foreign firms using a country’s Multilateral Memorandum of Understanding (MMoU) signing as a catalyst. The MMoU, a cooperative agreement among global securities regulators, enhances the SEC’s ability to engage in cross-border enforcement actions in collaboration with foreign counterparts. Our findings reveal a significant enhancement in both the quantity and quality of CSR reporting among U.S.-listed foreign firms after their home country signs the MMoU. This improvement sets them apart from their non-U.S.-listed counterparts in the same foreign location. Notably, this positive change is more pronounced among foreign firms from signatory countries with weak country-level institutions. This study contributes to the understanding of how regulatory changes, specifically MMoU adoption, influence CSR reporting, emphasizing the strategic role it plays for firms in the face of heightened regulatory cooperation and enforcement.
Original languageEnglish
Pages (from-to)21-48
Number of pages28
JournalJournal of International Accounting Research
Volume23
Issue number1
Early online date8 Jan 2024
DOIs
Publication statusPublished - 1 Mar 2024

Keywords

  • cross-border regulatory cooperation
  • corporate social responsibility reporting
  • CSR
  • foreign firms
  • cross-border
  • MMoU

Fingerprint

Dive into the research topics of 'Cross-border regulatory cooperation and corporate social responsibility reporting'. Together they form a unique fingerprint.

Cite this