Corporate Social Responsibility And Information Transparency

ABSTRACT:With the deepening of market-oriented economy, the Corporate Social Responsibility (CSR) and information transparency are increasingly important for companies. CSR reports not only reflect the firm’s sustainable development, but also reflect corporate risk level. CSR reports enrich the corporate information disclosure. On the analysis of the stakeholder theory, the efficient market theory and the theory of information asymmetry, we use a sample of A-share listed firms on the Shanghai and Shenzhen in China from2010to2012. We test the effect of CSR disclosure on information transparency using the scores of the listed CSR report by Rankins CSR Ratings (RKS). We have carried on the empirical research through the establishment of a logistic regression model on the relationship between CSR and information transparency. Through research, theoretically discusses the connotation, measure method and the related theoretical basis of CSR and information transparency. Application of large sample data, the debate domestic existing about the correlation between the CSR and information transparency has carried on the empirical and interpretation. The research results enrich the quality of reports and specific integrity, technical and content aspects on the impact of transparency. By choosing the latest data, the research results are more convincing and applicability. Application market microstructure model to construct indexes of information transparency and its continuity is superior to previous research in the transparency assessment results released by the Shenzhen stock exchange, improve the science and accuracy. This study shows that, with the higher quality corporate social responsibility reports, the better information transparency as possible. In addition to the disclosure of corporate financial reporting, this paper argues that the company can be also by the disclosure of corporate social responsibility report, to improve corporate transparency, to strengthen corporate governance, enhance corporate value and promote the sustainable development of enterprises.