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Using corporate social responsibility performance to evaluate financial disclosure credibility



Due to the paucity of immediate and direct information about financial disclosure credibility, it is often difficult for investors to assess the credibility of financial disclosures (e.g. whether reported earnings are biased). Given this situation, the present study proposes and finds that investors use additional cues, such as information about corporate social responsibility (CSR) performance, to form overall impressions about management's honesty, credibility, and trustworthiness. Similar to other findings in the halo effect literature, we find that these overall impressions subsequently influence both investors' assessments of financial disclosure credibility and the prices they are willing to pay for a company's stock. The findings support the theoretical framework on financial disclosure credibility by (1) showing that management credibility is an important tool that investors use to assess disclosure credibility and (2) suggesting that management credibility is a multidimensional latent construct for which CSR performance can be one of several relevant indicators.


Ketersediaan

ABR 19 2014ABR 19 2014Perpustakaan STIE Y.A.ITersedia namun tidak untuk dipinjamkan - Tidak Dipinjamkan

Informasi Detil

Judul Seri
Accounting and Business Research, Vol. 44 No. 5 Oct 2014, p. 523-544
No. Panggil
ABR 19 2014
Penerbit FE Universitas Pancasila : Banda Aceh.,
Deskripsi Fisik
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Bahasa
Inggris
ISBN/ISSN
0001-4788
Klasifikasi
-
Tipe Isi
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Tipe Media
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Tipe Pembawa
-
Edisi
-
Subyek
Info Detil Spesifik
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Pernyataan Tanggungjawab

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