Tools
Tools
Cuomo, Francesca 
ORCID: https://orcid.org/0000-0003-3535-1073, Gaia, Silvia, Girardone, Claudia and Piserà, Stefano
(2024)
The effects of the EU non-financial reporting directive on corporate social responsibility.
The European Journal of Finance, 30 (7).
pp. 726-752.
ISSN 1351-847X
Preview |
PDF (The effects of the EU non financial reporting directive on corporate social responsibility)
- Published Version
Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (2MB) | Preview |
Abstract
Using a large sample of EU non-financial firms over the period 2008–2018, this study examines the effect of the 2014 EU Non-Financial Reporting Directive on corporate social responsibility (CSR) and finds that the Directive has led to an increase in CSR transparency and performance. Further, it shows that the association between the Directive and CSR transparency is stronger for smaller firms, firms highly followed by analysts and firms headquartered in countries with strong legal systems. The adoption of CSR reporting after the Directive’s enactment, small firm size and investments in research and development strengthen the positive effects of the Directive on CSR performance. However, the mandating of CSR reporting assurance by some EU member states seems not to have any significant impact. Lastly, our study shows that after the Directive’s enactment, firms adopting CSR reporting experienced lower systematic risk and cost of equity. Our study contributes to the debate about whether and how non-financial disclosure should be regulated and shows the positive effects of the ‘comply or explain’ approach. It also provides insights for the EU in relation to the recently approved proposal to extend CSR reporting regulation to listed small and medium-sized enterprises and mandate CSR reporting assurance.
| Item Type: | Article |
|---|---|
| Additional Information: | Sustainable Finance and Governance (Workshop at the University of Bath held on Monday 17th May 2021) |
| Uncontrolled Keywords: | comply or explain principle,csr disclosure,eu firms,non-financial reporting directive,social and environmental performance,economics, econometrics and finance (miscellaneous),sdg 17 - partnerships for the goals,sdg 12 - responsible consumption and production ,/dk/atira/pure/subjectarea/asjc/2000/2001 |
| Faculty \ School: | Faculty of Social Sciences > Norwich Business School |
| UEA Research Groups: | Faculty of Social Sciences > Research Groups > Responsible Business Regulation Group |
| Related URLs: | |
| Depositing User: | LivePure Connector |
| Date Deposited: | 09 Sep 2022 13:30 |
| Last Modified: | 09 Apr 2024 13:30 |
| URI: | https://ueaeprints.uea.ac.uk/id/eprint/88028 |
| DOI: | 10.1080/1351847X.2022.2113812 |
Downloads
Downloads per month over past year
Actions (login required)
 |
View Item |