CSR Restatements: Mischief or Mistake?

Bachmann, RL; Spiropoulos, H

CSR Restatements: Mischief or Mistake?

Bachmann, RL Spiropoulos, H

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Publisher:: American Accounting Association
Publication Type:: Journal Article
Citation:: Journal of Management Accounting Research, 2023, pp. 1-30
Issue Date:: 2023-09-01

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Field	Value	Language
dc.contributor.author	Bachmann, RL
dc.contributor.author	Spiropoulos, H https://orcid.org/0000-0002-7748-6577
dc.date.accessioned	2023-08-09T03:53:30Z
dc.date.available	2023-08-09T03:53:30Z
dc.date.issued	2023-09-01
dc.identifier.citation	Journal of Management Accounting Research, 2023, pp. 1-30
dc.identifier.issn	1049-2127
dc.identifier.issn	1558-8033
dc.identifier.uri	http://hdl.handle.net/10453/171756
dc.description.abstract	<jats:title>ABSTRACT</jats:title> <jats:p>Using a sample of Australian Securities Exchange Ltd. (ASX) 500 firms over the 2004–2020 period, we find that contracting on corporate social responsibility (CSR) increases the likelihood of CSR restatements and that these restatements are biased toward showing improvements in CSR performance for the current period. This is especially the case when firms contract on social CSR performance measures. We also find that CEOs’ short-term incentive compensation is significantly greater when restatements result in improved comparative performance, but only for firms that contract on CSR. Overall, our results suggest that contracting on CSR is another explanation for the increasing prevalence of CSR restatements and that standard setters should address metrics and measures when formulating policies with respect to CSR reporting.</jats:p> <jats:p>Data Availability: Data are available from the public sources cited in the text.</jats:p> <jats:p>JEL Classifications: M12; M14; M52.</jats:p>
dc.language	en
dc.publisher	American Accounting Association
dc.relation	Accounting and Finance Association of Australia and New Zealand
dc.relation.ispartof	Journal of Management Accounting Research
dc.relation.isbasedon	10.2308/jmar-2022-028
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1501 Accounting, Auditing and Accountability
dc.subject.classification	3501 Accounting, auditing and accountability
dc.title	CSR Restatements: Mischief or Mistake?
dc.type	Journal Article
utslib.for	1501 Accounting, Auditing and Accountability
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	open_access	*
dc.date.updated	2023-08-09T03:53:29Z
pubs.publication-status	Published online

Abstract:

ABSTRACT Using a sample of Australian Securities Exchange Ltd. (ASX) 500 firms over the 2004–2020 period, we find that contracting on corporate social responsibility (CSR) increases the likelihood of CSR restatements and that these restatements are biased toward showing improvements in CSR performance for the current period. This is especially the case when firms contract on social CSR performance measures. We also find that CEOs’ short-term incentive compensation is significantly greater when restatements result in improved comparative performance, but only for firms that contract on CSR. Overall, our results suggest that contracting on CSR is another explanation for the increasing prevalence of CSR restatements and that standard setters should address metrics and measures when formulating policies with respect to CSR reporting. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M12; M14; M52.

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http://hdl.handle.net/10453/171756