Journal of Business Ethics

, Volume 140, Issue 2, pp 353–367

Corporate Social Responsibility and Management Forecast Accuracy

Article

DOI: 10.1007/s10551-015-2713-2

Cite this article as:
Lee, D. J Bus Ethics (2017) 140: 353. doi:10.1007/s10551-015-2713-2
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Abstract

This study examines the association between corporate social responsibility (CSR) and management forecast accuracy. Using data from 1995 to 2009, we find that firms provide more accurate earnings forecasts in the face of CSR activities. We also find that the positive association between CSR and management forecast accuracy is only present for the post-regulation period of 2001–2009, after the introduction of disclosure regulations intended to mitigate managers’ opportunistic behavior. These findings are consistent with the notion that managers strive to improve the quality of financial disclosure following superior CSR performance in the recent period.

Keywords

Corporate social responsibilityDisclosure regulationFinancial disclosureManagement forecast accuracy

Copyright information

© Springer Science+Business Media Dordrecht 2015

Authors and Affiliations

  1. 1.Desautels Faculty of ManagementMcGill UniversityMontrealCanada