Impact of CSR news reports on firm value

2020 ◽  
Vol 32 (3) ◽  
pp. 644-663
Author(s):  
Junhee Seok ◽  
Youseok Lee ◽  
Byung-Do Kim

PurposeThis study clarifies the relationship between corporate social responsibility (CSR) news reports and firm value and identifies the mechanisms that constitute this relationship. Specifically, it identifies the roles of word of mouth (WOM) and traditional advertising in this relationship.Design/methodology/approachThe data set used for the analysis covers 77 firms in Korea from 2012 to 2015. The random-effects model is applied to verify three hypotheses. Using a three-step regression analysis and the Sobel test, this study reveals the roles of WOM and advertising expenditure in the relationship between CSR news reports and firm value.FindingsCSR news reports positively affect firm value, and this relationship is mediated by WOM and moderated by advertising expenditure. Notably, the positive effect of WOM on firm value is stronger for companies that spend less on advertising.Practical implicationsThe evidence implies that marketing managers could benefit from not only conducting CSR activities but also widely publicizing them. CSR news reports could help companies enhance public awareness of and interest in them.Originality/valueThis is the first study to investigate the influence of CSR news reports using empirical data in Korea.

2018 ◽  
Vol 34 (11) ◽  
pp. 26-28

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings That whilst there are similarities between Strategic Quality Management (SQM) and Corporate Social Responsibility (CSR), one is not dependent on the other. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anissa Dakhli

Purpose The purpose of this paper is to investigate the direct and indirect relationship between institutional ownership and corporate tax avoidance using corporate social responsibility (CSR) as a mediating variable. Design/methodology/approach This study uses panel data set of 200 French firms listed during the 2007–2018 period. The direct and indirect effects between managerial ownership and tax avoidance were tested by using structural equation model analysis. Findings The results indicate that institutional ownership negatively affects tax avoidance. The greater the proportion of the institutional ownership, the lower the likelihood of tax avoidance usage. From the result of the Sobel test, this study indicated that CSR partially mediates the effect of institutional ownership on corporate tax avoidance. Practical implications The findings have some policy and practical implications that may help regulators in improving the quality of transactions and in achieving more efficient market supervision. They recommend to the government to add regulations and restrictions to the structure of corporate ownership to control corporate tax avoidance in French companies. Originality/value This study extends the existing literature by examining both the direct and indirect effect of institutional ownership on corporate tax avoidance in French companies by including CSR as a mediating variable.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mónika Anetta Alt ◽  
Zombor Berezvai ◽  
Irma Agárdi

PurposeRecently, a growing need for harmony has been observed worldwide. Harmony is a universal value in both Western and Asian countries. This paper aims to study how the concept of harmony is reflected in the innovation of European multinational grocery retailers and how harmony-related innovations affect the financial performance of the retailers.Design/methodology/approachThe research is based on a multisource database including innovation outcomes and financial performance indicators of 17 European multinational grocery retailers in the period of 2011–2018. In sum, 1,399 innovations were identified by content analysis. The relationship between innovation outcomes and financial performance was measured by panel regression analysis.FindingsResults indicate that retailers differ in launching harmony-oriented innovations. Moreover, 40% more innovations are related to harmony with people as those related to harmony with nature. Finally, harmony-with-people innovations have a significantly positive effect on retailers' sales growth.Practical implicationsBased on the research findings, retailers can improve their sales growth by launching innovations that focus on harmony in human relationships.Originality/valueThis paper extended the concept of harmony to the field of innovations. First, the research showed how the value of harmony appears in the innovations of multinational retailers. Second, the study differentiated between harmony-with-people and harmony-with-nature innovations. Third, the findings revealed that harmony-oriented innovations contribute to retailers' financial performance.


2019 ◽  
Vol 17 (3) ◽  
pp. 571-588
Author(s):  
Ahmed A. Diab ◽  
Ahmed Aboud ◽  
Arafat Hamdy

Purpose The purpose of this study is to address the impact of the related party transactions (RPTs) on firm value. The authors bring evidence from a usually ignored empirical setting: an African emerging market. Design/methodology/approach In particular, the authors focus on companies listed on the Egyptian stock market using a sample of EGX 30 from 2012 to 2017. Findings Unlike the literature, the authors find no significant relationship between RPTs and market value. Practical implications This research provides insights for policymakers and other interested parties concerning the perception of RPTs in Egypt. Originality/value The reported different findings of this study assure the intermediary role of the context and the local culture in the relationship between RPTs and firm value, in contrast to the negative view that is mostly reported in the literature.


2019 ◽  
Vol 27 (6) ◽  
pp. 13-15

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on how authentic leadership (AL), workplace climate, knowledge sharing, and employee performance interrelate based on data from people working in two telecommunications firms in Jordan. A highly ethical and moral AL style has a positive effect on an employee's performance and creativity. Furthermore, the workplace climate impacts the relationship between AL and creativity, and knowledge sharing impacts the relationship between AL and the workplace climate. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2019 ◽  
Vol 25 (7) ◽  
pp. 1696-1715
Author(s):  
Michael Kwamega ◽  
Dongmei Li ◽  
Eugene Abrokwah

Purpose The purpose of this paper is to investigate the mediating effect of information sharing (IS) on the link between supply chain integration (SCI) practices (internal, customer and supplier) and internal process performance (IPP) by using selected agribusiness firms from an emerging economy, Ghana. Design/methodology/approach To determine the effect of IS on the nexus between SCI practices and IPP, a research framework was developed and tested using data amassed from 156 agribusiness firms for the study. The data set was assessed and hypotheses were tested using structural equation modelling. Findings The outcomes revealed that both INI and CI positively and significantly influenced IS. However, the results disclosed that SI has no significant positive effect on IS among the Ghanaian agribusiness firms. The findings of the study further discovered that IS fully mediates the relationship between INI, CI and IPP, whereas SI has a direct interaction with IPP. Originality/value This study contributes to the existing supply chain management research by empirically authenticating IS as the mediator between SCI practices and IPP. From the viewpoint of a developing economy, this paper identifies the significant connection that exists between SCI practices, IS and IPP. The outcomes recommend that IS is a core driving facilitator to reinforce the correlation between SCI practices and IPP.


2018 ◽  
Vol 24 (6) ◽  
pp. 1393-1411
Author(s):  
Talal Mohammad Alsaif ◽  
Barbara M. Savage ◽  
Deborah M. Reed

Purpose The purpose of this paper is to explore and identify the areas in common between strategic quality management (SQM) and corporate social responsibility (CSR) from the literature. Studying these areas is important to develop any further connection between SQM and CSR because of both the potential for benefit to organisations and society, and in order to minimise resources needed for effective action by capitalising on synergies. Design/methodology/approach Literature review covering a broad range of publications that addresses the synergies of quality management and CSR to identify areas of commonality and thus simplify CSR implementation. Findings Identification of opportunities for knowledge transfer between SQM and CSR. Practical implications Synergies between SQM and CSR may offer attractive opportunities to capitalise on prior actions and learning, to enhance the value added to an organisation and the society in which it operates. Originality/value This evaluation is a part of a more in-depth research study investigating the relationship between and integration of SQM and CSR, and its application in specific contexts.


2015 ◽  
Vol 15 (4) ◽  
pp. 563-575 ◽  
Author(s):  
José Luis Fernández Sánchez ◽  
Ladislao Luna Sotorrío ◽  
Elisa Baraibar Diez

Purpose – The purpose of this study is to provide more knowledge about the model to generate reputation and its relationship in the long term with companies’ strategy of social responsibility. Particularly, research is done to test whether there is a positive effect of firms’ social behaviour (corporate social responsibility [CSR]), analysing differences of intensity and consistency, on their corporate reputation (CR) and whether the current financial crisis is a factor that has changed the relationship between both variables (moderator factor). Design/methodology/approach – This study uses a sample of 26 Spanish large firms of the Ibex35 index and covers an eight-year period from 2004 to 2011. To test the hypotheses of this research, a fixed-effects model was estimated using moderating regression analysis. Findings – The results obtained show that, for the Spanish Ibex35 companies, CSR practices according to their consistency have a significant positive effect on CR and in turbulent environments, as in the current financial crisis, it has had a significant positive influence on the CSR-CR relationship. Originality/value – Although a substantial number of empirical studies have examined the relationship between firms’ strategy and their performance, only a few of them have analysed the impact of the external environment on this relationship, whereby there is a need for longitudinal studies with different economic scenarios to achieve better knowledge of the CSR–CR relationship.


2019 ◽  
Vol 47 (8) ◽  
pp. 793-816 ◽  
Author(s):  
Didier Louis ◽  
Cindy Lombart ◽  
Fabien Durif

Purpose The purpose of this paper is to study the impact of the main dimensions of a retailer’s corporate social responsibility (CSR) activities (philanthropic activities, respect for the environment, respect for the consumers and respect for the workers) (e.g. Maignan, 2001; Brunk, 2010a; Öberseder et al., 2014) on consumers’ loyalty towards this retailer. Mediation (through consumers’ trust in this retailer and/or retailer’s perceived brand equity) and moderation effects (depending on the groups of consumers considered) are also studied. Design/methodology/approach This research was conducted on 547 consumers, representative of the Quebec population. These consumers were asked to select a retailer of their choice that they were familiar with (notably with its CSR activities) and to complete a questionnaire with regard to that retailer. Findings This research highlights that: the impact of a retailer’s CSR activities on consumers’ loyalty differs according to the dimensions considered (philanthropic activities, respect for the environment, the consumers and the workers), is fully or partially mediates by consumers’ trust in this retailer and/or retailer’s perceived brand equity and depends on the groups of consumers considered (the very responsible consumers, the local sceptical recyclers and the least responsible consumers). Research limitations/implications This research indicates that when CSR is considered not as an aggregate construct, but in terms of its dimensions, their impacts on consumers’ loyalty towards the retailer may differ or appear under certain conditions. Moreover, this research points out that consumers’ trust in the retailer is a partial mediator (for the philanthropic activities dimension of a retailer’s CSR activities for the very responsible consumers and the local sceptical recyclers) of the relationship between the dimension of a retailer’s CSR activities considered and consumers’ loyalty towards this retailer. Consumers’ trust in the retailer is also a full mediator (for the respect for environment dimension of a retailer’s CSR activities for the very responsible consumers) of the relationship between the dimension of a retailer’s CSR activities considered and consumers’ loyalty towards this retailer. Lastly, retailer’s perceived brand equity is a full mediator (for the respect for environment dimension of a retailer’s CSR activities for the three groups of consumers considered) of the relationship between the dimension of a retailer’s CSR activities considered and consumers’ loyalty towards this retailer. Practical implications This paper indicates to retailers that the dimensions respect for the consumers and the workers of their CSR activities do not have an impact on consumers’ loyalty. By contrast, for a retailer to be perceived by consumers as engaged in philanthropic activities or being environmentally friendly has a positive impact on consumers’ loyalty. Originality/value In this research, CSR is conceptualised as a multidimensional construct and the impacts of its main dimensions (philanthropic activities, respect for the environment, respect for consumers and respect for workers) on an important and strategic variables for retailers, loyalty, are highlighted. Moreover, this research also indicates that the impacts of a retailer’s CRS dimensions on consumers’ loyalty depend on individuals and may follow different paths (through consumers’ trust in the retailer and/or retailer’s perceived brand equity).


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anil Kumar ◽  
Rohit Kr Singh

PurposeThe study aims to examine the relationship between retailer's performance and corporate social responsibility (CSR) practices in Indian context. The article introduces a new conceptual model considering the parameters as per the stakeholder theory perspective.Design/methodology/approachThe authors conducted empirical research with CSR practices (CSRP) and other parameters to evaluate the retailers' performance using stakeholder theory. The authors present the results from 292 valid responses from the Indian retailers. The study used structured equation modeling (SEM) to present the analysis and the results.FindingsFindings indicate that CSRP along with additional constructs loyalty (L), reputation (R), customer satisfaction (CS) and competitive advantage (CA) have positive and significant impact on organizational performance (OP).Practical implicationsThe framework will serve as a guiding tool to the management of the retail outlets to examine carefully the link among CSRP with other variables presented in the study and subsequently to the retail outlet performance. The retailers must be more focused on the expectations and demands of the customers concerning products and services for better growth of the firms.Originality/valueThe uniqueness of the study lies in “CSR practices enabled integrated model” to examine the performance of the organizations. The proposed theoretical model would add value to the existing literature to help the retailers in process of their performance improvement.


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