CSR decoupling and financial fraud: Unveiling the hidden nexus in US-listed firms
6
Issued Date
2025-03-01
Resource Type
ISSN
02755319
Scopus ID
2-s2.0-85216548776
Journal Title
Research in International Business and Finance
Volume
75
Rights Holder(s)
SCOPUS
Bibliographic Citation
Research in International Business and Finance Vol.75 (2025)
Suggested Citation
Saeed A., Hamid S., Manita R., Suntraruk P. CSR decoupling and financial fraud: Unveiling the hidden nexus in US-listed firms. Research in International Business and Finance Vol.75 (2025). doi:10.1016/j.ribaf.2025.102791 Retrieved from: https://repository.li.mahidol.ac.th/handle/123456789/104216
Title
CSR decoupling and financial fraud: Unveiling the hidden nexus in US-listed firms
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Author's Affiliation
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Abstract
In an era marked by heightened transparency and growing social consciousness, many companies opt for symbolic Corporate Social Responsibility (CSR) communication rather than substantive action, giving rise to skepticism and a phenomenon known as 'CSR decoupling.' Moreover, revelations of financial fraud within ostensibly socially responsible firms exacerbate ethical concerns, raising doubts about their sincerity and regulatory oversight mechanisms. This study delves into US-listed firms to explore the nexus between CSR decoupling and financial fraud. Utilizing propensity score matching (PSM), the sample is meticulously drawn from 15,993 firm-year observations from US-listed firms. The research uncovers that firms engaged in CSR decoupling face elevated risks of financial misconduct. Additionally, deficient governance, subpar audit quality, and concentrated ownership structures amplify the likelihood of financial fraud. Our findings underscore the imperative for stakeholders and regulatory bodies to exercise discernment in scrutinizing CSR performance and disclosures, as managerial self-interests can skew CSR initiatives, misleading stakeholders.