CORPORATE SOCIAL RESPONSIBILITY AND ACCOUNTING INFORMATION QUALITY: AGENCY COSTS AND FINANCING CONSTRAINTS
DOI:
https://doi.org/10.55197/qjssh.v6i6.864Keywords:
accounting information quality, agency cost, corporate social responsibility, financing constraintAbstract
This study investigates the relationship between corporate social responsibility (CSR) and accounting information quality (AIQ), with a particular focus on the mediating roles of agency cost and financing constraint. Using data from Chinese A-share listed firms during 2021–2024, the research explores whether CSR engagement can enhance the credibility and reliability of financial reporting. The results show that CSR is positively associated with AIQ, as firms engaging in responsible practices tend to disclose more transparent and accurate information. Moreover, CSR reduces agency costs by aligning managerial and shareholder interests, which in turn improves reporting quality. At the same time, CSR alleviates financing constraints by enhancing reputation and investor trust, thereby reducing earnings manipulation pressures and supporting better reporting systems. Both mediating effects are partial but significant, indicating that CSR operates through multiple pathways to influence financial outcomes. The study contributes to the understanding of how non-financial practices shape financial reporting and highlights the strategic value of CSR beyond symbolic image-building. The findings have important implications for managers, policymakers, and investors, suggesting that CSR can serve as a tool to strengthen governance, ease financing difficulties, and improve transparency in capital markets.
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