Corporate Social Responsibility Disclosure, Market Supervision, and Green Investment

As a crucial business practice, corporate social responsibility (CSR) has attracted the attention of companies and market participants worldwide. This study examines the effects of CSR disclosure on green investment and analyses whether effects vary during China's stock market crash. The results reveal a mismatch between green investment and CSR disclosure and that the market supervisions act as a moderator. Furthermore, we observe that the nature of CSR disclosure as a self-interested tool becomes highly pronounced during extreme risk events. This observation suggests that a company facing downside market risk will compromise many of its environmental performances. Accordingly, we propose improved measures for regulators and investors in response to the gap between CSR disclosure and actual environmental performance.