This study sought to examine the impact of CSR (Corporate Social Responsibility) report publication—the most widely used tool for communicating CSR activities to stakeholders—on the relationship between CSR activities and financial performance. To test this hypothesis, an empirical analysis was conducted using 2,777 observations obtained from 328 U.S. firms between 1996 and 2007. The results indicated that because firms are more affected by short-term costs incurred from CSR activities than by long-term benefits, greater CSR activity has a negative effect on a firm's short-term financial performance. However, the publication of CSR reports was found to serve as a buffer that mitigates the negative relationship between CSR activities and the firm's short-term financial performance. Along with a summary of these research findings, the theoretical and practical implications, limitations, and future research directions of this study were also discussed.