The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China
利用中国2008年强制企业社会责任披露政策，研究发现强制披露降低了企业盈利能力，但减少了工业废水和二氧化硫排放，表明该政策以牺牲股东利益为代价产生了正外部性。
We examine how mandatory disclosure of corporate social responsibility (CSR) impacts firm performance and social externalities. Our analysis exploits China's 2008 mandate requiring firms to disclose CSR activities, using a difference-in-differences design. Although the mandate does not require firms to spend on CSR, we find that mandatory CSR reporting firms experience a decrease in profitability subsequent to the mandate. In addition, the cities most impacted by the disclosure mandate experience a decrease in their industrial wastewater and SO2 emission levels. These findings suggest that mandatory CSR disclosure alters firm behavior and generates positive externalities at the expense of shareholders.