The engagement of auditors in the reporting of corporate social responsibility information

In this research, we aim to examine how large auditing firms and audit/non‐audit fees affect corporate social responsibility (CSR) disclosure. We show that the big four auditing firms and the audit and non‐audit fees paid by audited firms encourage CSR reporting. Overall, our findings suggest that b...

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Bibliographic Details
Published inCorporate social-responsibility and environmental management Vol. 26; no. 1; pp. 46 - 56
Main Authors Pucheta‐Martínez, María Consuelo, Bel‐Oms, Inmaculada, Rodrigues, Lúcia Lima
Format Journal Article
LanguageEnglish
Published Bognor Regis Wiley Periodicals Inc 01.01.2019
Subjects
Audit fees
Auditing
Audits
big auditing firms
corporate social responsibility
Decision making
non‐audit fees
Social responsibility
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Summary:In this research, we aim to examine how large auditing firms and audit/non‐audit fees affect corporate social responsibility (CSR) disclosure. We show that the big four auditing firms and the audit and non‐audit fees paid by audited firms encourage CSR reporting. Overall, our findings suggest that big auditing firms play a relevant role in CSR disclosure, which may help to mitigate informative asymmetries between managers and stakeholders. Furthermore, audit and non‐audit fees paid by audited companies promote voluntary non‐financial information disclosure. These findings should be of interest to policymakers given the relevant role that CSR disclosure may play in the decision‐making processes of all stakeholders.
ISSN:1535-3958
1535-3966
DOI:10.1002/csr.1656