Information Quality of Corporate Social Responsibility Reports
|Speaker:||Volkan Muslu, University of Houston|
|Date: ||Wednesday 4 December 2013|
|Time: ||14.00 - 15.30|
|Location: ||Kolade Teaching Room, Building One|
We use computer-intensive techniques to construct a measure of Corporate Social Responsibility (CSR) reporting quality based on the tone, readability, quantitative content, and horizon content of a comprehensive sample of CSR reports. We find that higher CSR reporting quality is associated with higher CSR ratings. We also find that high CSR reporting quality is associated with lower analyst forecast errors. The results suggest that the CSR reporting quality improves the overall information environment of the firm, despite the lack of an accountability framework in CSR reporting.