Department of Accounting and Finance Research Seminar
When: Friday,
February 5, 2021
10:30 AM
-
12:00 PM
Where: > See description for location
Description: The Accounting and Finance Department announces the following research seminar.
Speaker: Associate Professor. Yue Li (University of Toronto)
Title: Do firms with strong commitment to corporate social responsibility prefer less frequent financial reporting? Evidence from eliminating mandatory quarterly financial reporting in Europe
Date: Friday, February 5, 2021
Time: 10:30 AM
Location: via Zoom Meeting
https://umassd.zoom.us/j/4387551509?pwd=bVB2QzdtRmFCdkk1WTVQSUxHMS9iQT09
Meeting ID: 438 755 1509
Passcode: 20210211
Abstract: This study examines whether corporate commitment to CSR and sustainability affects firm's choice of financial reporting frequency. Specifically, we examine whether firms with superior CSR performance and commitment to sustainability choose to abandon quarterly financial reporting voluntarily following the reporting regime change in Europe in 2013. We argue that corporate commitment to CSR and sustainability symbolizes a firm's orientation towards long-term investments and management disapproval of short-termism. As such, firms with strong commitment to CSR would reduce financial reporting frequency to avoid undesired pressure from short-term oriented investors. Using a sample of the London Stock Exchange (LSE) listed companies, we find that firms with superior CSR commitment are more likely to abandon the quarterly Interim Management Statement (IMS) voluntarily following the change in the U. K's Disclosure and Transparency Rules in 2014. Further analysis reveals that firms with superior CSR commitment do not experience increased information asymmetry following the abandonment of quarterly reporting. We find limited evidence that such firms are more likely to increase capital spending in later periods. Our results are robust to different specifications and controls for firm characteristics known to affect firm's financial reporting decision. Overall, the evidence in this study is consistent with the argument that corporate commitment to CSR symbolizes a firm's long-term investment focus and management orientation towards sustainability affects firm's choice of financial reporting frequency.
For additional information, please contact Prof. Hongkang Xu at hxu5@umassd.edu.
Speaker: Associate Professor. Yue Li (University of Toronto)
Title: Do firms with strong commitment to corporate social responsibility prefer less frequent financial reporting? Evidence from eliminating mandatory quarterly financial reporting in Europe
Date: Friday, February 5, 2021
Time: 10:30 AM
Location: via Zoom Meeting
https://umassd.zoom.us/j/4387551509?pwd=bVB2QzdtRmFCdkk1WTVQSUxHMS9iQT09
Meeting ID: 438 755 1509
Passcode: 20210211
Abstract: This study examines whether corporate commitment to CSR and sustainability affects firm's choice of financial reporting frequency. Specifically, we examine whether firms with superior CSR performance and commitment to sustainability choose to abandon quarterly financial reporting voluntarily following the reporting regime change in Europe in 2013. We argue that corporate commitment to CSR and sustainability symbolizes a firm's orientation towards long-term investments and management disapproval of short-termism. As such, firms with strong commitment to CSR would reduce financial reporting frequency to avoid undesired pressure from short-term oriented investors. Using a sample of the London Stock Exchange (LSE) listed companies, we find that firms with superior CSR commitment are more likely to abandon the quarterly Interim Management Statement (IMS) voluntarily following the change in the U. K's Disclosure and Transparency Rules in 2014. Further analysis reveals that firms with superior CSR commitment do not experience increased information asymmetry following the abandonment of quarterly reporting. We find limited evidence that such firms are more likely to increase capital spending in later periods. Our results are robust to different specifications and controls for firm characteristics known to affect firm's financial reporting decision. Overall, the evidence in this study is consistent with the argument that corporate commitment to CSR symbolizes a firm's long-term investment focus and management orientation towards sustainability affects firm's choice of financial reporting frequency.
For additional information, please contact Prof. Hongkang Xu at hxu5@umassd.edu.
Contact: > See Description for contact information
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