Corporate social responsibility and financial reporting quality: evidence from restatements

Yi-Hung Lin, Hua-Wei Huang, Mark Riley, Chih-Chen Lee

Research output: Contribution to journalArticleResearchpeer-review


We find a negative relationship between aggregate CSR scores and the probability that firms restated financial statements over the period 1991-2012. We then break that period into three sub-periods in order to determine whether the relationship holds for all three sub-periods. During the sub-periods of 1991-2001 and 2002-2005, the negative CSR score - restatement probability relationship holds. The negative relationship disappears in the 2006-2012 sub-period. Additional analyses indicate CSR scores are significantly higher in the 2006-2012 sub-period, suggesting the disappearance of the relationship between aggregate CSR scores and financial statement quality may relate to changes in CSR assessments and the CSR reporting environment. Our findings update the literature linking CSR scores and financial reporting quality and identify the need for further research as to the reasons the link between these constructs disappeared.
Original languageEnglish
Pages (from-to)61-75
Number of pages16
JournalAccounting and the Public Interest
Issue number1
Publication statusPublished - 2020


  • Corporate Social Responsibility
  • Financial Accounting Restatements
  • Financial Reporting Quality

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