scholarly journals Investment horizon and corporate social performance: the virtuous circle of long-term institutional ownership and responsible firm conduct

2019 ◽  
Vol 26 (1) ◽  
pp. 14-40 ◽  
Author(s):  
Ioannis Oikonomou ◽  
Chao Yin ◽  
Lei Zhao
Keyword(s):  
Corporate Social Performance ◽  
Social Performance ◽  
Institutional Ownership ◽  
Investment Horizon ◽  
Corporate Social ◽  
Firm Conduct

scholarly journals Does corporate social performance lead to better financial performance? Evidence from Turkey

Green Finance ◽  
2021 ◽  
Vol 3 (4) ◽  
pp. 463-481
Author(s):  
Hakan KURT ◽  
◽  
Xuhui Peng ◽  
Keyword(s):  
Financial Performance ◽  
Corporate Strategy ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Positive Role ◽  
Stakeholder Perspective ◽  
Short And Long Term ◽  
Corporate Social ◽  
The Impact

<abstract> <p>In the past two decades, research on the relationship between corporate social performance (CSP) and corporate financial performance (CFP) has seen considerable growth; however, evidence from Turkey remains scarce, and the results are not uniform. To address this lack, this study investigates the impact of CSP on CFP from the perspective of stakeholder theory. Following the investigation of 47 publicly listed companies from the BIST Corporate Governance Index (XKURY) in the period 2014–2018. The results demonstrate that CSP positively affects CFP in both the short and long term. This study addresses the lack of Turkish experience, and the results indicate that CSP is an intangible resource in corporate strategy that can improve the competitive power of Turkish enterprises. Furthermore, the study emphasizes the positive role of CSP in short-term and long-term CFP in the Turkish context from the stakeholder perspective. The results have implications for Turkish policymakers regarding the rational use of corporate social responsibility (CSR) to promote economic development and insights for Turkish enterprises in terms of gaining stakeholders' trust and improving investors' valuation through the strategic use of CSR to achieve long-term, sustainable development of enterprise competitiveness and finance.</p> </abstract>

scholarly journals Corporate Social Performance and Use of Debt: an Examination of Australian Companies

2021 ◽  
Vol 15 (4) ◽  
pp. 4-27
Author(s):  
Subba Reddy Yarram ◽  
Josie Fisher
Keyword(s):  
Conflict Resolution ◽  
Stakeholder Theory ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Negative Association ◽  
Short Term ◽  
Listed Firms ◽  
Australian Context ◽  
Corporate Social

This study examines whether the corporate social performance (CSP) activities of firms influence the structure of debt in the Australian context. Long-term debt is often associated with higher monitoring by lenders, which suggests that firms may benefit from using long-term debt strategically. Short-term debt arises from regular business dealings with a number of primary stakeholders such as customers, suppliers, employees and lenders. We propose in this study that businesses that are committed to improving CSP outcomes may reduce use of short-term debt contributing to building sustainable long-term relationships with the primary stakeholders. We therefore investigate whether firms that prioritise CSP favour long-term debt or short-term debt. Using a sample of Australian Securities Exchange (ASX) listed firms, this study finds that the level of CSP is not associated with long-term debt use, but there is a significant negative association between CSP and the short-term debt usage. This finding suggests that firms with stakeholder-friendly policies reduce their use of short-term debt rather than long-term debt. The reduced use of short-term debt helps resolve possible conflicts between the primary stakeholders and a firm, thus this study presents evidence supporting stakeholder theory and conflict-resolution hypothesis.

scholarly journals Corporate Social Performance, Financialization, and Real Investment in US Manufacturing Firms

2019 ◽  
Vol 11 (7) ◽  
pp. 1836 ◽  
Author(s):  
Sebastiano Cupertino ◽  
Costanza Consolandi ◽  
Alessandro Vercelli
Keyword(s):  
Capital Accumulation ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Corporate Sustainability ◽  
Manufacturing Firms ◽  
Business And Society ◽  
Corporate Social ◽  
Real Investment

In recent years, the global financial and economic crisis are rewriting the relationship between business and society, focusing, among other things, on the role of the process of financialization, not only in the economy as a whole but also within non-financial companies. Shareholder value maximization, together with the commoditization of business, has led to a general short-term approach at the expense of capital accumulation and core business activity, to the detriment of not only firms’ competitiveness and productivity but also of human capital, strategic innovation, business ethics, and long-term growth. Within this framework, this study investigates the role of corporate sustainability, analyzing the nexus between financialization, accumulation of real capital, and corporate social performance, an issue that has been neglected so far. Using a sample of US manufacturing firms from 2002 to 2017, we found that, while financialization was negatively correlated with corporate real investment, the environmental and social firm performance positively impacted corporate capital accumulation. Our results support the belief that a focus on environmental, social, and governance standards, fostering real investments, may enhance a firm’s long-term growth with a positive effect on its long-term value.

Institutional Ownership and Corporate Social Performance in Emerging Economies Multinationals: Evidence from India

2020 ◽  
Vol 13 (2) ◽  
pp. 227-252
Author(s):  
Sandeep Yadav
Keyword(s):  
Institutional Investors ◽  
Multinational Firms ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Institutional Ownership ◽  
Risk Behaviour ◽  
The Social ◽  
Corporate Social ◽  
Institutional Owners ◽  
The Relationship

This study fills the gap in the literature by considering the heterogeneous impact of institutional ownership on various dimensions of corporate social performance (CSP). Using the behavioural risk agency perspective, we argue that the risk behaviour of various institutional owners is not the same towards the CSP. We have taken a balanced panel sample of 61 Indian multinational firms for the span of 2013–2018 to test the proposed hypotheses. Results show a negative association of pressure-sensitive institutional investors’ ownership with social and governance dimensions of CSP. Mutual funds ownership is positively associated with the social and governance dimensions of CSP. Foreign institutional investors ownership has no significant impact on CSP. We found that the environmental dimension of CSP is ignored by institutional owners. The moderating effect of firm internationalisation on the relationship between institutional ownership and CSP is also examined.

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