In examining the relationship between disclosure, social performance, and economic performance, the empirical literature to date focuses on the potential relationship between (a) social disclosure and social performance, (b) social disclosure an economic performance based on either accounting or marketing variables, and (c) social performance and economic performance. Depending on the type of conceptualization and operationalization of key variables, the results range from strong correlation to no correlation. The diversity of results may be due to the failure to analyze the relationship among social disclosure, social performance, and economic performance within a single conceptual frame-work. 2 – 5
Accordingly, this chapter develops and empirically tests a positive model of the corporate decision to disclose social information in terms of both social performance and economic performance. In short, the model tests the empirical relationship of social disclosure with both social and economic performance. The related literature is then reviewed. The next section identifies the factors influencing the decision to disclosure social information. The variables are then defined before a presentation of the empirical tests. Finally, the summary and conclusion are presented.
Three types of empirical studies characterize the research on the social responsibility accounting of firms. 6
The first type examines the potential relationships between the extensiveness