Yarmouk University/ Jordan - Full Graduate Scholarship for PhD.
The Credibility of Corporate Social Responsibility (CSR) Disclosure: The Contribution of External Auditing
This study aims to investigate the credibility of CSR disclosure by examining the hypothesis that audited financial statements and voluntary disclosure (i.e. corporate social responsibility) are complementary means of communicating with stakeholders. With regard to this hypothesis, since independent verification of financial statements is governed by standards, which enhance their credibility, this credibility could, therefore, be expanded to encompass CSR disclosure.
In other words, committing more resources (i.e. audit fees) to independent verification of financial statements signals management’s truthfulness, which in turn leads to greater perceived credibility of CSR disclosure by stakeholders. Therefore, the likelihood of issuing CSR disclosure will be increased.