Are CSR Restatements Driven by Bias or Honest Mistakes?

Summary

Researchers investigate the occurrence and implications of restatements in corporate social responsibility (CSR) reporting among Australian Securities Exchange 500 firms from 2004 to 2020. Specifically, it examines whether the inclusion of CSR performance measures in CEO compensation contracts influences the likelihood and direction of CSR restatements, aiming to determine if these restatements are driven by deliberate bias to enhance reported performance or by improvements in measurement accuracy.