Does Corporate Social Responsibility Disclosure Reduce Stock Price Fluctuating Risk?

The concept of sustainable development has prompted people to pay more and more attention to the companies' behavior of fulfilling corporate social responsibility(CSR).After the promulgation of the compulsory disclosure policy in 2008,CSR disclosure is gradually step into the right track.It is valuable to study the economic consequences of CSR disclosure.CSR information can improve corporate reputation and reduce information asymmetry Therefore,it's meaningful to open up a new way to reduce the risk of stock price fluctuation from the perspective of CSR disclosure.China Securities Regulatory Commission mandated listed firms on special boards to disclose CSR in 2008.In this paper,based on the quasi-natural experiment of China's mandatory CSR disclosure policy,we chooses non-financial corporations in China's A-share market in 2008-2015,using difference-in-difference(DID)model to test the impact of CSR disclosure on stock price fluctuating risk.First,we test the disclosure and the quality of CSR report's impact on stock price fluctuating risk.The results show that the companies who have disclosed the reports have lower risk compared with those who have not disclosed CSR report.What's more,the higher the quality of the report,the smaller stock return fluctuating risk.In addition,we distinguish two situations of high financial report quality(FRQ)and low FRQ to observe the effectiveness of non-financial information disclosure.The companies with low FRQ have low efficiency in communication with the external market,and the asymmetric information barriers are high.Therefore CSR disclosure has a significantly complementary effect and a more negative impact on stock price fluctuating risk.The conclusion of this study enriches the research on the economic consequences of CSR disclosure,and also provides a reference for stock price fluctuating risk management.