Reexamination of the insurance-like effect of corporate social responsibility

This study aims to determine the effect of Earning Per Share (EPS), Return On Equity (ROE) and Quality of CSR on LQ 45 Company Stock Prices on the Indonesia Stock Exchange in 2015-2017. The population of this study was 45 companies and the sample was 36 LQ 45 companies listed on the Indonesia Stock Exchange for the period 2015-2017. The method of analysis uses classical assumption test calculations and analysis tools using multiple linear regression with SPSS software. Partial results show that Earning Per Share (X1) and Return On Equity (X2) have a significant influence on stock prices, while the quality of CSR (X3) does not affect stock prices. Simultaneously test all Earning Per Share (EPS), Return On Equity (ROE) and Quality of CSR have an effect on the Stock Price of LQ 45 companies listed on the Indonesia Stock Exchange in 2015-2017.

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Pengaruh Pengungkapan Corporate Social Responsibility terhadap Kinerja Keuangan dan Harga Saham pada Sektor Properti di Bursa Efek Indonesia

Jurnal Manajemen dan Organisasi ◽

10.29244/jmo.v6i1.12195 ◽

2016 ◽

Vol 6 (1) ◽

pp. 74

Author(s):

Putri Fika Hidayansyah ◽

Musa Hubeis ◽

Abdul Kohar Irwanto

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Stock Prices ◽

Stock Price ◽

Hypothesis Test ◽

Value Added ◽

Equation Modeling ◽

Csr Disclosure ◽

Corporate Social

The company operational activities are performed with the purpose to maximize shareholder values; however, the company's activities have impacts on environment, social, economiy and community. In order to comply with the government regulation, companies must conduct Corporate Social Responsibility (CSR), because investors are more interested in companies which have a good image in the community. This leads to make consumer loyalty higher and subsequently increases the company's profitability and company's stock values. The purpose of this study was to analyze the influence of CSR disclosure on Corporate Financial Performance (CFP) and stock prices. This study used 20 samples of property companies in the Indonesia’s Stock Exchange selected by purposive sampling. Data were processed and analyzed using Structural Equation Modeling (SEM) with software smartPLS. This research shows that valid indicators measure CSR at property sector include environment, human rights and society. A valid indicator measuring financial performance construct is only Market Value Added (MVA) and stock return is the valid indicator to measure stock price construct. The hypothesis test shows that CSR disclosure had significant effect on CFP, but the CSR disclosure had no significant effects on stock price, and CFP had no significant effects on stock prices.Keywords : corporate social responsibility, financial performance, stock price, property sector

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Pengaruh Pengungkapan Corporate Social Responsibility terhadap Kinerja Keuangan dan Harga Saham pada Sektor Properti di Bursa Efek Indonesia

Jurnal Manajemen dan Organisasi ◽

10.29244/jmo.6.1.74-89 ◽

2016 ◽

Vol 6 (1) ◽

pp. 74

Author(s):

Putri Fika Hidayansyah ◽

Musa Hubeis ◽

Abdul Kohar Irwanto

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Stock Prices ◽

Stock Price ◽

Hypothesis Test ◽

Value Added ◽

Equation Modeling ◽

Csr Disclosure ◽

Corporate Social

The company operational activities are performed with the purpose to maximize shareholder values; however, the company's activities have impacts on environment, social, economiy and community. In order to comply with the government regulation, companies must conduct Corporate Social Responsibility (CSR), because investors are more interested in companies which have a good image in the community. This leads to make consumer loyalty higher and subsequently increases the company's profitability and company's stock values. The purpose of this study was to analyze the influence of CSR disclosure on Corporate Financial Performance (CFP) and stock prices. This study used 20 samples of property companies in the Indonesia’s Stock Exchange selected by purposive sampling. Data were processed and analyzed using Structural Equation Modeling (SEM) with software smartPLS. This research shows that valid indicators measure CSR at property sector include environment, human rights and society. A valid indicator measuring financial performance construct is only Market Value Added (MVA) and stock return is the valid indicator to measure stock price construct. The hypothesis test shows that CSR disclosure had significant effect on CFP, but the CSR disclosure had no significant effects on stock price, and CFP had no significant effects on stock prices.Keywords : corporate social responsibility, financial performance, stock price, property sector

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Corporate social responsibility and stock price crash risk

Managerial Finance ◽

10.1108/mf-10-2015-0278 ◽

2016 ◽

Vol 42 (10) ◽

pp. 963-979 ◽

Cited By ~ 13

Author(s):

Ming-Te Lee

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Stock Price ◽

Crash Risk ◽

Least Squares Regression ◽

Content Type ◽

Empirical Results ◽

Corporate Social ◽

The Impact

Purpose The purpose of this paper is to test opposing views of the relationship between corporate social responsibility (CSR) and stock price crash risk in a major Asian emerging stock market. Design/methodology/approach This paper suggests an endogenous relationship between CSR and stock price crash risk. Hence, this paper uses two-stage least squares regression analysis to address the bias and inconsistency associated with endogeneity issues. Moreover, previous studies argue that the level of effectiveness of corporate governance significantly affects firm-specific stock price crash risk. Thus, this paper further divides the overall sample into two sub-samples according to the median of the corporate governance index. Furthermore, this paper investigates the impact of CSR on stock price crash risk under corporate governance. Findings The empirical results show that CSR significantly mitigates Taiwanese stock price crash risk. This finding is consistent with the notion that socially responsible Taiwanese firms commit to a higher standard of transparency and engage in less bad news hoarding, thus reducing crash risk. The empirical results also show that CSR has a more pronounced effect in mitigating crash risk for Taiwanese firms with less effective corporate governance. Originality/value The study findings indicate that CSR plays a more important role in reducing crash risk for Taiwanese firms with weak governance mechanisms.

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The impact of corporate social responsibility on stock price volatility of the US banks: a moderating role of tax

Journal of Financial Reporting and Accounting ◽

10.1108/jfra-01-2020-0020 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Cited By ~ 4

Author(s):

Mashiyat Tasnia ◽

Syed Musa Syed Jaafar AlHabshi ◽

Romzie Rosman

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Stock Price ◽

Price Volatility ◽

Stock Price Volatility ◽

Content Type ◽

The Us ◽

Corporate Social ◽

Moderating Role

Purpose Corporate social responsibility (CSR) is considered one of the crucial branding and promotional tools for banks to legitimise their role in society to become socially and environmentally responsible corporate citizen. The purpose of this study is to investigate the effect of CSR on stock price volatility of the US banks. This study further examined the moderating role of tax on the relationship between CSR and stock price volatility. Design/methodology/approach This study uses the random-effects panel regression estimation technique to test the hypotheses. The authors include a sample of 37 US banks from 2013 to 2017 with 144 bank-years observation. The authors consider the environmental, social and governance (ESG) scores from Refinitiv as a proxy for CSR. The financial data are also collected from the Refinitiv Datastream database. Findings This study finds a significant and positive relationship between CSR and stock price volatility, which indicates that shareholders of the US banks may not prefer excess concentration on CSR because of the additional cost of investment associated with implementing CSR. Also, tax payments and stock price volatility show a significant positive association, which implies that there is a higher possibility of an increase in stock price volatility if the tax rate increases. Generally, shareholders are not interested in paying more taxes, so they may swap the market instead of paying more tax. On the other hand, the authors find a non-significant moderating effect of tax payment on CSR-volatility nexus. Originality/value Previous studies mainly focussed on CSR and financial performance of banks. Conversely, studies focussing on CSR and stock volatility are limited. This study will fill the gap in the literature by considering the effect of CSR on the stock price volatility of the US banks.

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Corporate social responsibility behaviors and corporate reputation

Social Responsibility Journal ◽

10.1108/srj-11-2017-0255 ◽

2019 ◽

Vol 15 (3) ◽

pp. 395-408 ◽

Cited By ~ 8

Author(s):

Scott Jeffrey ◽

Stuart Rosenberg ◽

Brianna McCabe

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Corporate Reputation ◽

Stock Price ◽

Content Type ◽

Corporate Social ◽

The Impact ◽

Practical Implications

Purpose This paper aims to study how corporate social responsibility (CSR) behaviors can lead to corporate membership on Fortune Magazine’s Most Admired Companies list. Design/methodology/approach Regression analysis using environmental, social and governance (ESG) statistics published by MSCI-KLD as independent variables to predict the behaviors that lead to most admired status. Findings Not surprisingly, corporate financial performance (CFP) is the largest contributor to membership on the list. However, after controlling for CFP, the analysis finds that specific social responsibility behaviors contribute to membership on the Fortune list. Practical implications This paper finds that CSR behaviors are important to a firm’s reputation as measured by Fortune’s Most Admired Companies list. Therefore, companies should continue with social responsibility activities to improve their reputation with investors. Originality/value Many articles test the effect of ESG on financial performance and the role of financial performance on stock price. This paper is unique in that it measures the impact of CSR on corporate reputation using an important financial market benchmark – the Fortune Most Admired Companies list.

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Corporate social responsibility: what motivates management to disclose?

Social Responsibility Journal ◽

10.1108/srj-09-2013-0107 ◽

2015 ◽

Vol 11 (3) ◽

pp. 513-534 ◽

Cited By ~ 9

Author(s):

Tay Chia Ling ◽

Nigar Sultana

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Stock Price ◽

Ordinary Least Squares ◽

Statistical Technique ◽

Annual Reports ◽

Least Squares Regression ◽

Technical Trading ◽

Content Type ◽

Corporate Social

Purpose – The purpose of this paper is to provide empirical evidence on the significance of signal breaches from technical trading indicators in explaining variations in the level of corporate social responsibility disclosures (CSRD) by firms. The authors seek to determine whether firms disclose corporate social responsibility (CSR) information in a genuine attempt to report their impact on society and environment or whether firms use CSRD as a shield to legitimise their business operations. Design/methodology/approach – Signal breaches from the Moving Average Convergence Divergence and Chande’s TrendScore technical trading indicators were utilised, while the voluntary environmental and social accounting disclosure index developed by Williams (1998) was adapted to measure the extent of CSRD by Singaporean firms in 2011. Ordinary least squares regression was the principal multivariate statistical technique used to analyse the data collected. Findings – Findings of this paper indicate a positive and significant association between the number of technical indicator signal breaches for a firm and the level of CSRD by that firm, particularly in the environment, energy, human resources and products and customers categories. Research limitations/implications – The collection of CSRD information is based solely on annual reports and within the context of Singapore. Results, therefore, are not completely generalisable to different jurisdictional settings. Practical implications – Findings suggest that firms with a volatile stock price trend provide greater CSRD, possibly as a legitimacy strategy to distract or change the perceptions of investors from its current legitimacy status. Findings, therefore, highlight to regulators the need to strengthen regulatory requirements and implement stricter guidelines on CSR reporting, given the importance of CSRD to users. Social implications – Findings from this study have several implications for various stakeholders including investors, regulators and society in general. Overall, findings also suggest that stakeholders should not rely solely on CSRD in their decision-making process. Originality/value – This is the first paper that has proxied stock price movement by using breaches in technical trading indicators when examining reported levels of CSRD by firms. Moreover, results greatly build on the sparse CSR research on Singapore.

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DISCLOSURE ATAS MANAGEMENT STATEMENT, INTELLECTUAL CAPITAL, DAN CORPORATE SOCIAL RESPONSIBILITY TERHADAP NILAI PERUSAHAAN

Jurnal Akuntansi Indonesia ◽

10.30659/jai.5.1.99-114 ◽

2016 ◽

Vol 5 (1) ◽

pp. 99

Author(s):

Sri Imaningati ◽

Mekani Vestari

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Intellectual Capital ◽

Stock Prices ◽

Firm Value ◽

Stock Price ◽

Multiple Linear Regression Model ◽

Negative Effect ◽

Csr Disclosure ◽

Corporate Social

Value of the firm is an investor perception about the condition of the firm, which is often refered to the stock price. High stock prices indicate high public appreciation of the firm. Efforts to maximize value of the firm is done by maximizing the factors that influence it. This study used three variables, namely Statement Management Disclosure, Intellectual Capital Disclosure, and Corporate Social Responsibility Disclosure. The object of the research ismanufacturing company from 2009 to 2013. Samples were collected by purposive sampling method. Multiple linear regression model used in this research model testing. The results showed that CSR Disclosure had a positive effect on Firm Value. Intellectual Capital Disclosure does not affect the Firm Value, while Management Statement Disclosure had a negative effect on the Firm Value.

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The Environmental Aspect of Companies as A Determinant of Stock Prices

Assets Jurnal Akuntansi dan Pendidikan ◽

10.25273/jap.v7i2.2302 ◽

2018 ◽

Vol 7 (2) ◽

pp. 105

Author(s):

Ida Nurcahyanti ◽

Purweni Widhianningrum

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Stock Prices ◽

Stock Price ◽

Positive Response ◽

Stock Exchange ◽

Environmental Aspects ◽

Environmental Aspect ◽

Analysis Technique ◽

Corporate Social

This study aims to determine the effect of disclosure of Corporate Social Responsibility which is composed of economic, environmental and social to the stock price on the companies listed on the Indonesia Stock Exchange. The analysis technique uses multiple regression. The results of this study indicate that the economic and social aspects of Corporate Social Responsibility disclosure does not affect the stock price, while the environmental aspects affect the stock price. These results prove that companies that have environmental concerns as an effort to reduce the effects of global warming, can also increase the positive response of stakeholders through an increase in stock prices.

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