AAA Spark Meeting of the Regions

Accounting Firms’ Corporate Social Responsibility Activities: Determinants and Consequences

• In Event: Accounting Professionals' Behaviors

Abstract

To study accounting firms’ corporate social responsibility (CSR) activities, we utilize annual CSR rankings by Vault as proxies for accounting firms’ CSR performance. We examine what motivates accounting firms to undertake CSR activities, and the possible benefits that might accrue to them. We identify the factors driving accounting firms to engage in CSR activities, notably firm reputation, employee intensity, clients’ CSR preferences, and litigation risk exposure in their client portfolios. We also document that CSR performance benefits accounting firms by increasing their operating efficiency and market share, as well as improving audit quality.

Authors

• Feng Gao, Rutgers, The State University of New Jersey

• Jagan Krishnan, Temple University

• Sridhar Ramamoorti, University of Dayton

• Muktak K. Tripathi, Temple University