Corporate social responsibility disclosure and the cost of equity capital: The roles of stakeholder orientation and financial transparency

Dan S Dhaliwal, Oliver Zhen Li, Albert Tsang, Yong George Yang

Research output: Contribution to journalArticle

130 Citations (Scopus)

Abstract

We examine the benefits associated with corporate social responsibility (CSR) disclosure in an international setting covering 31 countries. Using variables such as the legal status of labor protection, CSR disclosure requirements, and public awareness of and attitudes toward CSR issues, we divide countries into more and less stakeholder-oriented groups. We find a negative association between CSR disclosure and the cost of equity capital; this relationship is more pronounced in stakeholder-oriented countries. We also find evidence that financial and CSR disclosures act as substitutes for each other in reducing the cost of equity capital. This study furthers our understanding of CSR disclosure and its consequences.

Original languageEnglish (US)
Pages (from-to)328-355
Number of pages28
JournalJournal of Accounting and Public Policy
Volume33
Issue number4
DOIs
StatePublished - 2014

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social responsibility
transparency
equity
stakeholder
costs
legal status
Disclosure
Stakeholder orientation
Cost of equity capital
Corporate Social Responsibility
Financial transparency
labor
evidence
Group

ASJC Scopus subject areas

  • Accounting
  • Sociology and Political Science

Cite this

Corporate social responsibility disclosure and the cost of equity capital : The roles of stakeholder orientation and financial transparency. / Dhaliwal, Dan S; Li, Oliver Zhen; Tsang, Albert; Yang, Yong George.

In: Journal of Accounting and Public Policy, Vol. 33, No. 4, 2014, p. 328-355.

Research output: Contribution to journalArticle

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