10-K Disclosure of Corporate Social Responsibility and Firms’ Competitive Advantages

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dc.contributor.author Connon, James
dc.contributor.author Ling, Zhejia
dc.contributor.author Watanabe, Olena
dc.contributor.author Wang, Qian
dc.contributor.author Watanabe, Olena
dc.contributor.department Accounting
dc.date 2020-01-16T20:26:35.000
dc.date.accessioned 2020-06-29T22:44:35Z
dc.date.available 2020-06-29T22:44:35Z
dc.date.copyright Tue Jan 01 00:00:00 UTC 2019
dc.date.embargo 2021-04-07
dc.date.issued 2019-10-07
dc.description.abstract <p>In this paper, we offer evidence that disclosure of corporate social responsibility (CSR) in the 10-K provides information about firms’ competitive advantages. We create a textual measure of CSR disclosure that aggregates CSR keywords found in 10-Ks. We measure firms’ competitive advantages by using levels of and persistence of industry-adjusted gross margin; selling, general, and administrative (SG&A) margin; and operating margin. We first show that 10-K CSR disclosure intensity is associated with lower levels of gross margin but higher SG&A margin. We then observe that firms with more CSR keywords in their 10-Ks maintain more persistent above-industry-median gross and operating margins. Upon sorting our full set of 10-K CSR keywords into three subcategories (philanthropy, business practice, and product), we find that the intensities of disclosure in these CSR subcategories have associations with varying competitive advantages.</p>
dc.description.comments <p>This accepted article is published as Cannon, J. N., Z. Ling, Q. Wang, and O. V. Watanabe. 2019. 10-K Disclosure of Corporate Social Responsibility and Firms’ Competitive Advantages. <em>European Accounting Review</em> 28(6):000–000. Doi: <a target="_blank">10.1080/09638180.2019.1670223</a>. Posted with permission. </p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/acct_pubs/16/
dc.identifier.articleid 1013
dc.identifier.contextkey 16252820
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath acct_pubs/16
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/1858
dc.language.iso en
dc.source.bitstream archive/lib.dr.iastate.edu/acct_pubs/16/2019_WatanabeO_Manu___10_K_Disclosure_of_Corporate_Social_Responsibility.pdf|||Fri Jan 14 20:53:17 UTC 2022
dc.source.uri 10.1080/09638180.2019.1670223
dc.subject.disciplines Accounting
dc.subject.disciplines Corporate Finance
dc.subject.disciplines Finance and Financial Management
dc.subject.disciplines Strategic Management Policy
dc.subject.keywords Corporate social responsibility
dc.subject.keywords Non-financial disclosure
dc.subject.keywords Competitive advantage
dc.subject.keywords Operating performance
dc.title 10-K Disclosure of Corporate Social Responsibility and Firms’ Competitive Advantages
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication 7e93ed3b-637b-4799-bd5d-e3bb47e21914
relation.isOrgUnitOfPublication a22c7344-d5b6-42c6-8b0d-c260ed008e15
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