The Influence of Corporate Social Responsibility Accounting on Investor Decision-Making and Market Valuation

Posted: Mar 08, 2021

• Joseph Hall
• Joseph Johnson
• Joseph Taylor

Abstract

The integration of Corporate Social Responsibility (CSR) considerations into traditional accounting frameworks represents one of the most significant developments in modern financial reporting. As stakeholders increasingly demand transparency regarding corporate environmental and social impacts, accounting professionals and standard-setting bodies have grappled with how to effectively measure, report, and verify non-financial performance indicators. This research addresses a critical gap in understanding how these emerging CSR accounting practices influence the fundamental processes of investor decision-making and ultimately affect market valuations. Traditional financial accounting has historically focused on quantifiable economic transactions, leaving broader societal and environmental impacts