This study investigates the impact of outsiders’ demand for more information (or transparency) on corporate social responsibility (CSR) initiatives. Drawing on a dataset of U.S. companies from 2010 to 2023, CSR performance is measured using ASSET4 ratings, while CSR disclosure levels are captured through the number of words and sentences in reports. Utilizing within-industry and -firm OLS regressions, our analyses reveal a positive relationship between the demand for more information and future CSR investments, showing that firms with higher demand for information not only enhance their CSR performance but also expand the length of their CSR reports. These results suggest that increased pressures for information encourage organizations to engage more deeply with social responsibility, resulting in more robust CSR activities and more comprehensive reporting practices. This study contributes to the existing literature by highlighting the strong predictive role of outsiders’ demand for more information in promoting CSR investment and disclosure, and by offering important insights for policymakers and practitioners on fostering corporate responsibility through enhanced transparency.

Understanding cost behavior and identifying cost stickiness is crucial for internal and external stakeholders, as it influences company profitability and decision-making. Cost stickiness arises from the asymmetry in cost responses to changes in sales and can be affected by the agency problem, which often leads to inefficiency in cost reduction. ...

In this research, in the form of Motivation theory, the effect of labor costs of companies on the quality of their financial and non-financial reporting has been investigated. Based on the theories of motivation and human resources, this research argues that the entire administrative and general workforce of the company ...