Mandatory CSR and Sustainability Reporting: Economic Analysis and Literature Review

115 Pages Posted: 20 Aug 2019 Last revised: 19 Nov 2021

See all articles by Hans Christensen

Hans Christensen

University of Chicago - Booth School of Business

Luzi Hail

University of Pennsylvania - The Wharton School; European Corporate Governance Institute (ECGI)

Christian Leuz

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Center for Financial Studies (CFS); University of Pennsylvania - Wharton Financial Institutions Center; CESifo Research Network

Multiple version iconThere are 2 versions of this paper

Date Written: August 2019

Abstract

This study collates potential economic effects of mandated disclosure and reporting standards for corporate social responsibility (CSR) and sustainability topics. We first outline key features of CSR reporting. Next, we draw on relevant academic literatures in accounting, finance, economics, and management to discuss and evaluate the potential economic consequences of a requirement for sustainability reporting for U.S. firms, including effects in capital markets, on stakeholders other than investors and on firm behavior. We also discuss issues related to the implementation and enforcement of CSR and sustainability reporting standards as well as two approaches to sustainability reporting that differ in their overarching goals and materiality standards. Our analysis yields a number of insights that are relevant for the current debate on mandatory CSR and sustainability reporting. It also points scholars to avenues for future research.

Suggested Citation

Christensen, Hans and Hail, Luzi and Leuz, Christian, Mandatory CSR and Sustainability Reporting: Economic Analysis and Literature Review (August 2019). Available at SSRN: https://ssrn.com/abstract=3439179

Hans Christensen (Contact Author)

University of Chicago - Booth School of Business ( email )

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Luzi Hail

University of Pennsylvania - The Wharton School ( email )

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Christian Leuz

University of Chicago - Booth School of Business ( email )

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HOME PAGE: http://faculty.chicagobooth.edu/christian.leuz/

National Bureau of Economic Research (NBER) ( email )

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European Corporate Governance Institute (ECGI)

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Center for Financial Studies (CFS) ( email )

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University of Pennsylvania - Wharton Financial Institutions Center

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