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| Empirical Study on the Effects of Social and Environmental Disclosures in Chinese Stock Market |
| XU Shan,HUANG Jianbai |
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Abstract Social and environmental activities are often seen as part of corporations’ Corporate Social Responsibility (CSR). The emergence of CSR disclosure is a response to the demands of activist investors, ethical and green institutional investors. However, is this trend beneficial to investors? Using an event study methodology and a sample of Chinese listed companies from 2009-2011, we investigate whether social disclosure and environmental disclosure substitute or complement each other in reducing information asymmetry between managers and investors, and whether economic (hard) disclosure and generic (soft) disclosure can play the same role to investors. Our findings suggest that social disclosure and environmental disclosure complement each other in reducing stock market asymmetry, as proxied by share price volatility and liquidity. the higher of CSR disclosure ratings, the more reduction in volatility and more increasing in eiquidity. Our results also show that the reduction in information asymmetry is higher for hard disclosure than for soft disclosure.
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Received: 30 April 2014
Published: 15 October 2014
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Corresponding Authors:
XU Shan
E-mail: haze1207@sina.com
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2014, Vol. 
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