CLOSELY-HELD CORPORATIONS PARTICIPATE LESS IN CORPORATE SOCIAL REPORTING

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Jia Lin, Ed Vos

https://doi.org/10.22495/cocv4i1c1p1

Abstract

This study investigates the relationship between corporate social reporting (CSR) disclosures and firm characteristics (such as: financial performance and corporate structure) in 100 multinational companies that list on the main U.S. stock exchanges. By using content analysis method, it evaluates annual reports according to several criteria. The results show that the absolute measure of net income and firm size are significant predictors of CSR disclosures. This association does not hold for the relative measure of income and other variables. However, not surprisingly, closely-held shares percentage variable has a significant negative relationship with corporate social reporting. This reveals that closely-held corporations are expected to conceal more information from the public than others. In sum, the findings confirm that large firm and profitable firms are more likely to disclose their CSR practices, but less so when closely held.

Keywords: –°orporate Social Reporting, Financial Performance, Corporate Structure

How to cite this paper: Lin, J., & Vos, E. (2006). Closely-held corporations participate less in corporate social reporting. Corporate Ownership & Control, 4(1-1), 160-176. https://doi.org/10.22495/cocv4i1c1p1