Measuring CSR Disclosure when Assessing Stock Market Effects

Annika Beelitz, Charles H. Cho, Giovanna Michelon, Dennis M. Patten

Research output: Contribution to journalArticle (Academic Journal)peer-review

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A growing number of studies are using a dichotomous variable indicating the presence of a standalone CSR report to capture impacts of CSR disclosure. Our concern is that, without considering differences in the information provided, such an approach could lead to incorrect inferences regarding those impacts. Accordingly, we extend prior research by examining whether, similar to differences in environmental disclosure, the mere presence of a standalone CSR report also mitigates negative market reactions at times of regulatory cost exposure. We focus on the 2011 Fukushima Daiichi disaster and a sample of international utilities with nuclear power generation. Controlling for other factors related to social and regulatory cost exposures, we find only the environmental disclosures appear to reduce negative market effects. We thus argue that, in exploring the impacts of CSR disclosure, researchers need to carefully consider, beyond just the presence of a CSR report, differences in the extent of information being provided.
Original languageEnglish
Pages (from-to)1-22
Number of pages22
JournalAccounting and the Public Interest
Issue number1
Early online date25 Mar 2021
Publication statusE-pub ahead of print - 25 Mar 2021

Bibliographical note

Funding Information:
We would like to thank Amy M. Hageman (editor), Dana Wallace (editor), and two anonymous reviewers for their thoughtful editorial guidance and constructive comments, suggestions and support to help improve our paper. Furthermore, we would like to thank Lynn Hodgkinson, Doris Merkl-Davies, and Niamh Brennan for their help and guidance on the project in its early stages. We would also like to thank the participants of an invited research seminar at the University College Dublin in 2012, the 2012 and 2013 Accounting and Finance Research Colloquium at Gregynog Hall, the 2012 BAFA SWAG Conference, the 2013 BAFA Colloquium and Conference, the 2013 APIRA conference and colloquium, and the 2018 CSEAR Ireland conference for their valuable comments and feedback on earlier versions of the paper. A special thank you goes to Professor Katsuhiko Kokubu and Kobe University for inviting the lead author to visit Kobe University in 2013 and for funding the stay, and for making it possible for the paper to be presented at invited research seminars at Fukushima University and Kobe University. Charles Cho acknowledges the support provided by the Erivan K. Haub Chair in Business & Sustainability at the Schulich School of Business and the Global Research Network program through the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2016S1A2A2912421).

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