RT Article
T1 Corporate Social Responsibility Report Narratives and Analyst Forecast Accuracy
JF Journal of business ethics
VO 154
IS 4
SP 1119
OP 1142
A1 Muslu, Volkan
A1 Mutlu, Sunay
A1 Radhakrishnan, Suresh
A1 Tsang, Albert
LA English
PB Springer Science + Business Media B. V
YR 2019
UL https://ixtheo.de/Record/1785667807
AB Standalone corporate social responsibility (CSR) reports vary considerably in the content of information released due to their voluntary nature. In this study, we develop a disclosure score based on the tone, readability, length, and the numerical and horizon content of CSR report narratives, and examine the relationship between the CSR disclosure scores and analyst forecasts. We find that CSR reporters with high disclosure scores are associated with more accurate forecasts, whereas low score CSR reporters are not associated with more accurate forecasts than firms who do not issue CSR reports. The findings are robust to controlling for firm characteristics including CSR activity ratings and financial narratives. The findings are driven by experienced CSR reporters rather than first-time CSR reporters. Together, our findings suggest that the content of CSR reports helps to improve analyst forecast accuracy, and this relationship is more pronounced for CSR reports with more substantial content.
K1 Analyst forecasts
K1 Textual disclosures
K1 Corporate Social Responsibility Reporting
DO 10.1007/s10551-016-3429-7