The Reliability Of Corporate Social Responsibility Disclosure And Market Reaction

With the growing globalization of economy, the rapid economic development and the rising people’s living standards, the corresponding social problems become more prominent, for example, pollution of ecological environment, food safety issues, violations of human rights, etc. The CSR of a corporation and its disclosure have gradually become the focus of the public. The reliability of the information disclosure of CSR has attracted more and more attention.This paper chooses relationship between reliability of CSR disclosure and relevant market reaction as the research object. In the perspective of stakeholder, by means of deduction, supported by empirical research, explore the relationship between the two. Firstly make definition of the basic concepts, determining the connotation of reliability of CSR disclosure, going through relevant literatures concerning the study of the market reaction to domestic and foreign social responsibility information disclosure. Then analyze the status quo of the social responsibility information disclosure reliability in China, making analysis of relationship between the reliability of CSR disclosure and market reaction through the relevant theoretical deduction. After that, use the method of event study for the empirical test from two aspects, the environmental data fraud and social responsibility report assurance. Finally, summarize the research conclusion, and put forward the related policy suggestion.The results show that:corporate environmental data fraud as a typical low reliability behavior of CSR disclosure, it has significant market reaction, and will bring corporation stocks significantly negative abnormal return; and social responsibility report assurance can improve reliability of the social responsibility information disclosure, while the market reaction is not significant, releasing the audition of Social Responsibility Report for enterprises will not bring the significantly higher CAAR than that of publication of non-audition report on social responsibility of enterprises. This not only shows that the market reaction to the negative news of social responsibility is bigger than the positive ones, also shows that China has not given enough attention towards the reliability of CSR disclosure.