Disclosure of CSR over the Firm Life Cycle in Japan

Abstract

This paper investigates how a firm’s life cycle affects corporate CSR disclosure. Using data from Japanese firms from 2006 to 2015, the firm life cycle is classified according to Dickinson (2011). The results show differences in disclosure levels depending on the firm life cycle. In the maturity stage, the amount of disclosure is significantly larger while, in the growth stage, the amount of disclosure is smaller. Additionally, there are differences in disclosure levels depending on the type of CSR information. Environment-related information has a significant influence in Japan. On the other hand, there were no significant differences in terms of governance and society. In Japan, stewardship codes have been introduced and reference those of the United Kingdom. For CSR-related information, disclosure should occur in accordance with laws and regulations, and information other than disclosure based on laws and regulations should also be addressed subjectively. The situation of firms has not been considered thus far. In the future, an appropriate disclosure strategy that considers firms’ growth stage would be employed to improve firm value.