Earnings Pressure and Corporate Social Responsibility Impression Management

Extensive research has investigated the buffering effect of corporate social responsibility (CSR) when firms have poor financial performance. However, few studies have examined the possible consequences of this effect. By analyzing data on listed firms in China from 2010 to 2018, this study investigates the buffering effect of CSR under conditions of earnings pressure, and then discusses its impact on CSR disclosure impression management behavior. The results show that CSR can buffer the negative impact of earnings pressure on stock prices, chief executive officer stability, and top management team stability. This buffering effect is mainly exerted by technical CSR. Moreover, earnings pressure leads to CSR disclosure impression management without resulting in improved CSR performance. These findings have implications for cultivating CSR buffering awareness among firms and managers. The results also have practical implications for future research on the antecedents and motivations of CSR disclosure impression management.