[Home ] [Archive]   [ فارسی ]  
:: Main :: About :: Current Issue :: Archive :: Search :: Submit :: Contact ::
Main Menu
Home::
Journal Information::
About the Journal
Aims& Scopes
Editorial Board ::
Articles archive::
All Issues
Current Issue
Publication Ethics::
For Authors::
Guide for Authors
Submission Form
Peer Review Process::
Reviewers Section
Registration::
Registration Form
Site Facilities::
Site map
Search contents
FAQ
Top 10 contents
Inform to friends
Contact us::
Contact Information
Contact us
::
Search in website

Advanced Search
..
Receive site information
Enter your Email in the following box to receive the site news and information.
..
:: Volume 8, Issue 16 (3-2024) ::
aapc 2024, 8(16): 279-309 Back to browse issues page
The Influence of Financial Restatements on the Quality and Disclosure of Voluntary Activities of Corporate Social Responsibility Reporting
Sarah Jabbar Abd Ali Al-Itbi1 , Akbar Zavari Rezaei 2, Pari Chalaki3 , Parviz Piri4
1- Ph.D. Student of accounting, Urmia University, Urmia, Iran(sarahjabbar1985@gmail.com)
2- Assistant Professor of accounting, Urmia University, Urmia, Iran( Corresponding Author) , a.zavarirezaei@urmia.ac.ir
3- Assistant Professor of accounting, Urmia University, Urmia, Iran(p.chalaki@urmia.ac.ir(
4- associate Professor of accounting, Urmia University, Urmia, Iran(p.priri@urmia.ac.ir)
Abstract:   (1598 Views)
Social responsibility increases social trust, improves business conditions, promotes brand, preserves the environment, and manages future crises. In this regard, considering these positive consequences and the mandatory reporting of social responsibility for listed companies in Iran, the purpose of this study is to investigate the effect of financial restatements on the quality and disclosure of voluntary activities of social responsibility reporting in the form of legitimacy and signaling theory. The current research is applied in terms of purpose and descriptive-correlation type. The statistical population of the research is all the companies admitted to the Tehran Stock Exchange, and using the targeted screening method, a sample including information about 100 companies were collected, and analyzed during the years 2018-2022. In order to test the hypotheses of the research, the logistic model, and also the linear regression model have been used. The research results show that companies that have no financial restatements have more motivation for voluntary social responsibility reporting activities, which is consistent with the signaling theory and shows that business units with problems of low representation and information asymmetry are more inclined to carry out voluntary measures of social responsibility reporting. Therefore, it is better for companies to engage in voluntary social responsibility reporting activities in order not only to use the competitive advantage and its marking, but also to benefit from the advantage of increasing future performance.
Keywords: financial restatements, the disclosure of CSR reporting, the quality of CSR reporting, signaling theory, information asymmetry
Full-Text [PDF 987 kb]   (173 Downloads)    
Type of Study: Research | Subject: Special
Received: 2023/08/24 | Accepted: 2024/03/19 | Published: 2024/06/17
References
1. Al-Hadi, A., G. Taylor, M. M. Hasan, and B. Eulaiwi. 2023. Third-party auditor liability and financial restatements. The British Accounting Review 55(2): 101084.
2. Bacha, S., A. Ajina, and S. Ben Saad. 2021. CSR performance and the cost of debt: does audit quality matter? Corporate Governance (Bingley) 21: 137-158.
3. Bae, S. M., M. A. K. Masud, and J. D. Kim. 2018. A cross-country investigation of corporate governance and corporate sustainability disclosure: A signaling theory perspective. Sustainability (Switzerland) 10 (8): 2611.
4. Benlemlih, M. 2017. Corporate Social Responsibility and Firm Debt Maturity. Journal of Business Ethics 144: 491-517.
5. Bocquet, R., C. Le Bas, C. Mothe, and N. Poussing. 2017. CSR, Innovation, and Firm Performance in Sluggish Growth Contexts: A Firm-Level Empirical Analysis. Journal of Business Ethics 146: 241-254
6. Clarkson, P., Y. Li, G. Richardson, and A. Tsang. 2019. Causes and consequences of voluntary assurance of CSR reports: International evidence involving Dow Jones Sustainability Index Inclusion and Firm Valuation. Accounting, Auditing and Accountability Journal 32: 2451-2474.
7. Desjardine, M. R., E. Marti, and R. Durand. 2021. Why activist hedge funds target socially responsible firms: The reaction costs of signaling corporate social responsibility. Academy of Management Journal 64: 851-872.
8. Dhaliwal, D. S., O. Z. Li, A. Tsang, and Y. G. Yang. 2011. Voluntary nonfinancial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. The Accounting Review 86: 59-100.
9. Fernández-Kranz, D., and J. Santaló. 2010. When Necessity Becomes a Virtue: The Effect of Product Market Competition on Corporate Social Responsibility. Journal of Economics & Management Strategy 19: 453-487.
10. Freeman, R. 1984. Strategic Management: A Stakeholder Perspective. Cambridge, UK: Cambridge University Press.
11. García-Sánchez, I. M., N. Hussain, J. Martínez-Ferrero, and E. Ruiz-Barbadillo. 2019. Impact of disclosure and assurance quality of corporate sustainability reports on access to finance. Corporate Social Responsibility and Environmental Management 26: 832-848.
12. Gupta, J., and N. Das. 2022. Multidimensional corporate social responsibility disclosure and financial performance: A meta-analytical review. Corporate Social Responsibility and Environmental Management 29(4): 731-748.
13. Hahn, R., and M. Kühnen. 2013. Determinants of sustainability reporting: A review of results, trends, theory, and opportunities in an expanding field of research. Journal of Cleaner Production 59: 5-21.
14. Huang, H. W. S., Z. Y. A. Feng, and A. A. Zaher. 2020. Fair value and economic consequences of financial restatements. Finance Research Letters 34: 101244.
15. Jahmane, A., and B. Gaies. 2020. Corporate social responsibility, financial instability and corporate financial performance: Linear, non-linear and spillover effects – The case of the CAC 40 companies. Finance Research Letters 34: 101483.
16. Jia, X. 2020. Corporate social responsibility activities and firm performance: The moderating role of strategic emphasis and industry competition. Corporate Social Responsibility and Environmental Management 27(1): 65-73.
17. Kaplan, S. N., and L. Zingales. 1997. Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? The Quarterly Journal of Economics 112: 169-215.
18. Kasznik, R. 1999. On the association between voluntary disclosure and earnings management. Journal of Accounting Research 37(1): 57-81.
19. Kuang, Y. F., X. K. Liu, S. Paruchuri, and B. Qin. 2022. CFO social ties to non-CEO senior managers and financial restatements. Accounting and Business Research 52(2): 115-149.
20. Long, W., S. Li, H. Wu, and X. Song. 2020. Corporate social responsibility and financial performance: The roles of government intervention and market competition. Corporate Social Responsibility and Environmental Management 27(2): 525-541.
21. Martínez, J., I. M. Sanchez, and B. Ballesteros. 2015. Effect of financial reporting quality on sustainability information disclosure. Corporate social responsibility and environmental management 22(1): 45-64.
22. Nazari, J. A., K. Hrazdil, and F. Mahmoudian. 2017. Assessing social and environmental performance through narrative complexity in CSR reports. Journal of Contemporary Accounting & Economics 13(2): 166-178.
23. Nyame-Asiamah, F., and S. Ghulam. 2019. The relationship between CSR activity and sales growth in the UK retailing sector. Social Responsibility Journal 16: 387-401.
24. Pham, H. S. T., and H. Y. Tran. 2020. CSR disclosure and firm performance: The mediating role of corporate reputation and moderating role of CEO integrity, Journal of Business Research 120: 127-136
25. Romito, S., and C. Vurro. 2021. Non‐financial disclosure and information asymmetry: A stakeholder view on US listed firms. Corporate Social Responsibility and Environmental Management 28: 595-605.
26. Tsang, A., T. Frost, and H. Cao. 2023. Environmental, Social, and Governance (ESG) Disclosure: A Literature Review. The British Accounting Review 101149.
27. Udayasankar, K. 2008. Corporate social responsibility and firm size. Journal of Business Ethics 83: 167-175.
28. Vishwanathan, P., H. van Oosterhout, P. P. M. A. R. Heugens, P. Duran, and M. van Essen. 2020. Strategic CSR: A Concept Building Meta-Analysis. Journal of Management Studies 57: 314-350.
29. Waddock, S. A., and S. B. Graves. 1997. The corporate social performance-financial performance link. Strategic Management Journal 18(4): 303-319.
30. Zhang, L., Y. G. Shan, and M. Chang. 2021. Can CSR disclosure protect firm reputation during financial restatements? Journal of Business Ethics 173: 157-184.
Add your comments about this article
Your username or Email:

CAPTCHA

XML   Persian Abstract   Print

Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Jabbar Abd Ali Al-Itbi S, Zavari Rezaei A, Chalaki P, piri P. The Influence of Financial Restatements on the Quality and Disclosure of Voluntary Activities of Corporate Social Responsibility Reporting. aapc 2024; 8 (16) :279-309
URL: http://aapc.khu.ac.ir/article-1-1185-en.html
Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Volume 8, Issue 16 (3-2024) Back to browse issues page
دوفصلنامه علمی حسابداری ارزشی و رفتاری journal of Value & Behavioral Accounting
Persian site map - English site map - Created in 0.1 seconds with 37 queries by YEKTAWEB 4666