The impact of corporate social responsibility assurance on investor decisions: Chinese evidence

Hongtao Shen, Huiying Wu*, Parmod Chand

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

14 Citations (Scopus)

Abstract

In this experimental study, we examine whether corporate social responsibility (CSR) reports affect the investment decisions of non-professional investors in China depending on whether they are assured, the nature of CSR disclosures (positive versus negative disclosures), and the type of assurance provider (professional accountants versus industry experts). The results indicate that CSR assurance increases investor willingness to invest and that the credibility of CSR information partially mediates the relationship between assurance and investment decisions. We also note that the effect of CSR assurance on investment decisions is greater when CSR disclosures are positive than when they are negative. However, the type of assurance provider does not significantly influence the effect of CSR assurance on investor decision making. China's institutional setting features novice investors, government-affiliated industry expert assurers, and government-driven CSR assurance. As a pioneering study on the effects of CSR assurance in China, our work is a valuable supplement to previous studies, which have largely focused on developed economies with considerably different institutional settings.

Original languageEnglish
Pages (from-to)271–287
Number of pages17
JournalInternational Journal of Auditing
Volume21
Issue number3
DOIs
Publication statusPublished - 10 Nov 2017

Keywords

  • Assurance
  • China
  • Credibility
  • CSR information
  • Investment decisions

Fingerprint Dive into the research topics of 'The impact of corporate social responsibility assurance on investor decisions: Chinese evidence'. Together they form a unique fingerprint.

Cite this