The disclosure of corporate social responsibility reports and sales performance in China |
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Authors: | Wei Yu Ying Zheng |
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Institution: | 1. School of Finance, Shanghai University of International Business and Economics, Shanghai, China;2. Center for Accounting, Finance and Institution, Business School, Sun Yat-sen University, Guangzhou, China |
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Abstract: | Based on legitimacy and stakeholder theory, we investigate whether there is an association between the disclosure of corporate social responsibility reports and a firm's sales performance in China. The empirical results reveal that the return on sales and sales growth are positively associated with the level of corporate social responsibility reporting in China. This positive association is strengthened when firms have concentrated customers. Firms use corporate social responsibility reports to improve sales performance and attract customers, who are one of their major stakeholders, and retain their legitimacy. |
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Keywords: | Corporate social responsibility reporting Stakeholder theory Legitimacy theory Customer China |
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