Corporate social responsibility disclosure, dividend payments and firm value – Relations and mediating effects

Charl de Villiers, Diandian Ma, Ana Marques

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Abstract

We examine the relations between corporate social responsibility (CSR) disclosures, dividend payments, and firm value. We use an international sample and measure CSR disclosures based on Global Reporting Initiative (GRI) disclosure levels, which we divide into two parts (unexpected and expected disclosures). We find three main results. First, firms with higher levels of unexpected CSR disclosure pay higher dividends, and this association is attributable to firms where unexpected CSR disclosure is aligned with CSR performance. Second, only the unexpected part of CSR disclosures is positively associated with share prices. Third, this positive association is fully mediated by dividends.
Original languageEnglish
Pages (from-to)185-219
Number of pages35
JournalAccounting and Finance
Volume64
Issue number1
Early online date14 Jul 2023
DOIs
Publication statusPublished - Mar 2024

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