Journal article

Authors list: Bannier, Christina E.; Bofinger, Yannik; Rock, Björn

Publication year: 2023

Pages: 903-933

Journal: European Accounting Review

Volume number: 32

Issue number: 4

ISSN: 0963-8180

eISSN: 1468-4497

DOI Link: https://doi.org/10.1080/09638180.2022.2042349

Publisher: Taylor and Francis Group

Abstract: 
We compare the effects of corporate social responsibility (CSR) on firms' equity risk under two different (non-)financial reporting regimes: the risk-based U.S. and the content-based EU system. We observe a strongly negative CSR-risk relation in the EU, but a much weaker general impact in the U.S. In correspondence with goal-framing theory, we find several moderating effects on this association, depending on the reporting regime: (i) A highly volatile market environment unfolds the risk-reducing effect of CSR in the U.S. system, but has no moderating effect in the EU; (ii) Rising CSR awareness buttresses the risk-reducing effect of CSR in the EU, but has an opposing effect in the U.S.; (iii) Risk reductions are most strongly associated with social and governance rather than environmental activity in the EU regime, while there are no such individual effects in the U.S.

Harvard Citation style: Bannier, C., Bofinger, Y. and Rock, B. (2023) Doing Safe by Doing Good: Non-Financial Reporting and the Risk Effects of Corporate Social Responsibility, European Accounting Review, 32(4), pp. 903-933. https://doi.org/10.1080/09638180.2022.2042349

APA Citation style: Bannier, C., Bofinger, Y., & Rock, B. (2023). Doing Safe by Doing Good: Non-Financial Reporting and the Risk Effects of Corporate Social Responsibility. European Accounting Review. 32(4), 903-933. https://doi.org/10.1080/09638180.2022.2042349