Mandatory corporate social responsibility disclosure and financial constraints: evidence from China

Xiao Liang, Xiaomeng Charlene Chen*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)
69 Downloads (Pure)


We investigate the impact of mandatory CSR disclosures on firms' financial constraints in China, where CSR reporting is mandated for a subset of listed firms. Employing a difference-in-differences approach, we find that mandatory CSR reporting firms experience greater financial constraints after the mandate. We identify controlling shareholder expropriation as a plausible channel through which the mandate affects financial constraints. Further analyses reveal that mandatory CSR reporting firms with political connections or located in more marketized regions/provinces can alleviate their financial constraints. Our findings add evidence to the economic implications of CSR disclosure mandates. Given the prevailing global trend toward enforcing CSR disclosures and the call for more research on mandatory CSR reporting, our study sheds light on how these mandates shape firms’ access to finance.

Original languageEnglish
Pages (from-to)954-974
Number of pages21
JournalInternational Review of Economics and Finance
Publication statusPublished - Jan 2024

Bibliographical note

Copyright the Author(s) 2023. Version archived for private and non-commercial use with the permission of the author/s and according to publisher conditions. For further rights please contact the publisher.


  • Corporate social responsibility
  • Financial constraints
  • Mandatory CSR disclosure


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