Mandatory Disclosure Of Corporate Social Responsibility Report And Risk Of Stock Price Crash

In 2008 the State Council issued a document on the social responsibility of the central enterprises,the Shanghai Stock Exchange and the Shenzhen Stock Exchange also introduced a document to standardize the disclosure of corporate social responsibility report.With the release of corporate social responsibility report increases,some companies publish the report level is unsatisfactory.In the specific context of China's capital market,the impact of disclosure of corporate social responsibility on the market has become a hot issue.During 2004 to 2013,this study used a natural experimental approach from the perspective of stock price collapse.In particular,this article not only uses different-in-different method to test this event,and the use of propensity score matching as one of the tools for robustness testing.The study investigates whether mandatory disclosure of corporate social responsibility report contribute to the risk of stock price crash.Moreover,the increasing effect of stock price crash risk on mandatory disclosure of CSR is more pronounced when firms have less the number of analysts.In response to higher shareholding of major shareholders and the non-state-owned enterprises,mandatory disclosure of CSR have significantly enhanced the risk of stock price crash.Through research,this study not only provides a new perspective on the economic consequences of mandatory disclosure of social responsibility reports,but also helps policy makers to understand the impact of mandatory disclosure has a reverse effect.