|dc.description.abstract||Regression discontinuity design was employed to estimate the causal effects of mandatory
CSR disclosure imposed by §3-3c in the Accounting Act on the corporate financial
performance of companies in Norway. The analysis used data from 4 954 Norwegian
firms. In this study, 15 financial ratios – that assess the profitability, efficiency, liquidity
and leverage – were selected to examine the change in corporate financial performance.
By using small and large businesses as treatment and control groups, respectively, this
project estimated the causal effects of the legislation on the change in the ratios. The
regression discontinuity design did not facilitate the causal estimation of §3-3c on liquidity.
The analysis did reveal positive and negative short-term effects on profitability and firm
leverage, respectively. However, the analysis yielded inconclusive results for financial
efficiency. Nevertheless, all companies must incorporate CSR into their business strategies
and actively report on their CSR activities to their stakeholders.
Keywords – Regression Discontinuity, Mandatory CSR Reporting, Corporate Financial
Performance, Accounting Act, Norwegian Companies||en_US