The Characteristics Of Social Responsibility Report And Accounting Information Quality

Accounting information not only provides rich information for decision-making of policy makers,capital market investors and other stakeholders of the company,but also is of great significance to optimize resource allocation and promote the standardization of capital market.The quality of accounting information is directly related to the healthy development of capital market.High quality accounting information can prevent the occurrence of financial manipulation.In recent years,a series of financial fraud cases,such as "Kangmei pharmaceutical financial fraud case" and "Ruixing coffee fraud case",have caused extensive attention and Discussion on the quality of accounting information and corporate social responsibility in academic and practical circles.While accounting fraud cases are attributed to the lack of corporate social responsibility and moral hazard,they are also attributed to the weak corporate governance.How to improve the internal and external governance of enterprises,strengthen corporate social responsibility disclosure and improve the quality of accounting information is the focus of scholars’ research.This paper focuses on the relationship between corporate social responsibility and accounting information quality,provides empirical evidence for the research on the relationship between social responsibility report and accounting information quality,provides a new thinking paradigm for simplifying the research on social responsibility report,and expands the research on the combination of social responsibility concept and enterprise development strategy.Aiming at the social responsibility report,this paper extends the research of social responsibility information disclosure to the quantitative dimension of text information analysis,and analyzes and extracts the characteristics of text readability,language sincerity,intonation optimism and content difference of social responsibility report.At the same time,based on the quantifiable degree of accounting information quality characteristics,this paper selects the correlation,reliability,prudence and comparability of accounting information quality characteristics as the research variables of this paper,and studies the following problems:(1)the relationship between the readability of social responsibility report text and the correlation of accounting information,as well as different social responsibility performance The difference between CEO tenure and analyst attention(2)The relationship between the sincerity of Social Responsibility Reporting Language and the reliability of accounting information,as well as the differences between the two under different property rights,industry competition level and investor protection(3)The relationship between the optimistic tone of social responsibility report and the prudence of accounting information,as well as the differences between them under different willingness to disclose social responsibility report,Manager Overconfidence and agency conflict between shareholders and managers(4)The impact of the content difference of social responsibility report on the comparability of accounting information,and the difference of the relationship between the two under different internal control quality,environmental uncertainty and institutional investors’ shareholding.To solve these problems,this paper takes the enterprises that disclosed social responsibility reports in Shanghai and Shenzhen A-share listed companies from 2009 to 2018 as the research sample,carries out text analysis through Python software,extracts the readability,language sincerity,intonation optimism and content differences of social responsibility reports,and makes an empirical analysis on the above four aspects.The main research contents and basic conclusions of this paper are as follows:(1)On the relationship between the readability of social responsibility report text and the relevance of accounting information.Through the standardized treatment of three indicators: text length,average sentence length and the density of turning conjunctions,this paper quantifies the text readability by summation,and empirically studies the relationship between text readability and the relevance of accounting information.In further research,this paper analyzes the differences of the relationship between the readability of social responsibility text and accounting information under different characteristics from three aspects: corporate social responsibility performance,CEO tenure and analyst attention.The results show that there is a significant positive correlation between the readability of social responsibility report text and the relevance of accounting information,and this positive correlation is more significant in companies with good social responsibility performance,long CEO tenure and high analyst attention.(2)On the relationship between the sincerity of Social Responsibility Reporting Language and the reliability of accounting information.This paper standardizes the language sincerity,quantifies the explicit expression sincerity and implicit expression sincerity,and empirically studies the relationship between the language sincerity of social responsibility report of listed companies and the reliability of accounting information.Further,we investigate the heterogeneity of this relationship under the conditions of differences in enterprise nature,industry characteristics and external supervision.The results show that there is a significant positive correlation between the sincerity of Social Responsibility Reporting Language and the reliability of accounting information,and this positive correlation is more obvious in companies with private property rights,high level of industry competition and high degree of investor protection.(3)On the relationship between the tone optimism of social responsibility report and the prudence of accounting information.In terms of intonation optimism,this paper comprehensively draws lessons from the Chinese emotional polarity dictionary compiled by Taiwan University,How Net emotional dictionary and Loughran and Mc Donald’s word list,and quantifies it by calculating the proportion of positive words and negative words involved in social responsibility texts,This paper empirically analyzes the relationship between the tone optimism of social responsibility report of listed companies and the prudence of accounting information.Further,we investigate the differences of this relationship under the internal and external conditions of different companies.Specifically,it tests whether there are differences and the degree of differences in the relationship between the tone optimism of social responsibility report and the prudence of accounting information from three aspects: the willingness to disclose social responsibility report,the agency conflict between shareholders and managers and the overconfidence of managers.The results show that there is a significant negative correlation between the tone optimism of social responsibility report and the prudence of accounting information,and this negative correlation is more obvious in companies with voluntary disclosure of social responsibility report,more overconfidence of managers and serious agency conflict between shareholders and managers.(4)On the influence of the content difference of social responsibility report on the comparability of accounting information.The difference of social responsibility report text content can reflect the industry deviation degree of corporate social responsibility strategy.This paper quantitatively analyzes the difference of report content by calculating the cosine similarity of cosine of corporate social responsibility text vector with other companies in the same industry,and empirically tests the relationship between the difference of social responsibility report content and the comparability of accounting information.Further,it examines the difference between the content difference of social responsibility report and the comparability of accounting information under the differences of environmental uncertainty,the quality of internal control and the governance role of institutional investors.The results show that the difference of social responsibility content has a significant negative impact on the comparability of accounting information.In addition,this relationship is more obvious in companies with large environmental uncertainty,low quality of internal control and weak governance role of institutional investors.Based on the existing research,the innovation of this paper is mainly reflected in:first,this paper measures the readability,language sincerity,intonation optimism and content differences of social responsibility report,so as to quantify the content and characteristics of social responsibility report,and provide empirical evidence for the research on the relationship between Social Responsibility Report and accounting information quality,It provides a new thinking paradigm for simplifying the complexity of social responsibility reporting research.Secondly,this paper analyzes the relationship between the text characteristics of social responsibility report and the quality of accounting information,as well as the differences between the two under different conditions,and then provides a basis for standardizing the disclosure of social responsibility report according to different characteristics.Third,this paper not only enriches the existing research content,but also provides theoretical basis and data support for the text characteristics of social responsibility report,the internal logic of enterprise accounting information quality and the improvement of enterprise governance efficiency,but also provides further empirical evidence for the research in this field.