Can Enhanced Financial Asset Disclosure Elevate Corporate Social Responsibility?
In 2017,China's Ministry of Finance conducted a comprehensive revision of the accounting standards related to financial instruments,sig-nificantly improving the quality of financial asset information disclosure.This study selects cross-listed firms from 2010 to 2019 as the sample and empiri-cally finds that enhanced financial asset disclosure quality significantly impacts on corporate social responsibility(CSR).From an external perspective,high-quality financial asset information alleviates information asymmetry and improves market information efficiency.This enables investors and other stakeholders to more accurately assess a company's financial condition and operational performance,thereby encouraging firms to place greater emphasis on fulfilling their social responsibilities.Regarding internal resource reallocation,the new accounting standards restrict the current recognition of gains and losses on financial assets,reducing management's incentive to manipulate profits through trading financial asset in pursuit of short-term performance met-rics.Consequently,this shifts in focus redirects resources from high-risk financial investments to CSR initiatives.The study's findings reaffirm the critical role of information disclosure in fostering sustainable and high-quality development of firms and markets from the perspective of financial assets.
New Financial Instrument Accounting StandardsInformation DisclosureCorporate Social ResponsibilityAccounting Rent-SeekingResource Allocation
万方数据
维普
