Mining Impacts of CSR Disclosure on Firm Performance

Authors

Tzu-Ting Cheng, National Sun Yat-sen UniversityFollow
Yi-Hang Tsai, National Sun Yat-sen UniversityFollow
Chiayu Lai, National Pingtung University of Science and TechnologyFollow
San-Yih Hwang, National Sun Yat-sen UniversityFollow

Abstract

Corporate social responsibility (CSR) has gained much attention in recent years, and its impact on corporate financial performance (CFP) is in constant debate. However, previous studies in this line of research have primarily focused on CSR performance evaluated by rating agencies rather than the disclosure of CSR reports. This paper adopts a text-mining approach to measure environmental and social disclosure and examine the effects of depth, breadth, and stakeholders of disclosure on firm performance. We retrieve the CSR reports of listed companies in Taiwan and their financial data from TEJ, the prevalent financial database in Taiwan between 2016 to 2020. Our preliminary findings show that the level of detail and coverage in CSR disclosure significantly affect a company’s CFP. We expect our findings to help plan company’s ESG disclosure so as to add value to its future activities and attract shareholders to increase their willingness to invest.

Comments

Paper Number 1720; Track AI; Short Paper

Recommended Citation

Cheng, Tzu-Ting; Tsai, Yi-Hang; Lai, Chiayu; and Hwang, San-Yih, "Mining Impacts of CSR Disclosure on Firm Performance" (2023). PACIS 2023 Proceedings. 188.
https://aisel.aisnet.org/pacis2023/188