Does positive CSR increase willingness to invest in a company based on performance? The incremental role of combined assurance

Soon Yeow Phang, Hien Hoang

Research output: Contribution to journalArticleResearchpeer-review

Abstract

We examine whether the communication of combined assurance is effective in increasing favourable investment decisions towards a company with negative financial performance. We find that the communication of combined assurance, compared to when only corporate social responsibility (CSR) assurance is communicated, results in a more significant impact on investors’ decisions to invest when the company has negative performance, but this effect is less significant when the company has positive performance. When the company has positive performance, perceived reliability and willingness to invest do not change regardless of whether combined assurance is included or not.

Original languageEnglish
Number of pages24
JournalAccounting & Finance
DOIs
Publication statusAccepted/In press - 2021

Keywords

  • Combined assurance
  • Corporate social responsibility
  • Financial performance
  • Investor judgement

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