Do female and independent directors explain the two-way relationship between corporate social responsibility and earnings management of Chinese listed firms?

2019 ◽  
Vol 27 (3) ◽  
pp. 442-460 ◽  
Author(s):  
Muhammad Safdar Sial ◽  
Zheng Chunmei ◽  
Nguyen Vinh Khuong
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Emerging Market ◽  
Independent Directors ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Social ◽  
Moderating Role

Purpose This study aims to explore the possibility of a two-way relationship between corporate social responsibility (CSR) and earnings management (accruals and real EM) with the moderating role of female and independent directors. Design/methodology/approach The authors use STATA to test the generalized method of moments on a sample of Chinese listed firms data over the period 2009-2015. The unbalanced sample obtained 3,481 observations from China stock market and accounting research database and CSR rating provided by Rankins. Findings The results indicate a significant negative relationship between two-way CSR and accrual-based EM. Moreover, female and independent directors moderate the two-way relationship between CSR and EM. Research limitations/implications The present study does not include all financial, insurance and investment firms to impact on CSR and EM. Further research might consist of family ownership to enhance the evidence for an emerging market. Originality/value This study primarily contributes to the literature on CSR, female and independent directors, and EM by providing evidence for the moderating role of female and independent directors on the two-way association between CSR and EM.

Mind the gap: independent directors and corporate social responsibility in China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruijie Jin ◽  
Xiaoxian Jiang ◽  
Ao Shen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Fixed Effects ◽  
Independent Directors ◽  
Theoretical Understanding ◽  
Content Type ◽  
Listed Firms ◽  
Fixed Effects Regression ◽  
Corporate Social

Purpose This study aims to examine the effect of independent directors on the corporate social responsibility (CSR) gap – a misalignment between internal and external CSR. More specifically, the authors investigate how two types of independent directors (i.e. politically connected and foreign) affect a firm’s CSR gap in China. Design/methodology/approach The authors use the fixed-effects regression model to analyze the panel dataset, which is conducted by a sample of Chinese publicly listed firms from 2008 to 2015. Findings The findings indicate that, on average, firms undertake more external than internal CSR actions. Importantly, the authors find that firms having politically connected independent directors on boards have a wider gap between their internal and external CSR. In contrast, firms having foreign independent directors on boards have a narrower gap between their internal and external CSR. Practical implications This study provides insights into the role of independent directors in increasing or decreasing the gap between a firm’s internal and external CSR actions, which offers important implications for policymakers and investors. Originality/value This study extends the literature on the causes of the CSR gap and deepens the theoretical understanding of the governance role of independent directors in China.

The effect of corporate social responsibility on earnings management and tax avoidance in Chinese listed companies

2019 ◽  
Vol 27 (4) ◽  
pp. 632-652 ◽  
Author(s):  
Haijing Liu ◽  
Hyun-Ah Lee
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Tax Avoidance ◽  
Listed Companies ◽  
Private Enterprises ◽  
Content Type ◽  
Listed Firms ◽  
Chinese Listed Companies ◽  
Corporate Social

Purpose This paper aims to verify the effect of corporate social responsibility (CSR) on Chinese listed firms’ earnings management and tax avoidance. Specifically, this study investigates whether government-guided CSR implementation indeed drives firms to behave in a responsible manner by constraining earnings management and tax avoidance. Design/methodology/approach The paper analyses a sample of Chinese listed companies that are confronted with the unique situation of CSR being developed at a rapid pace by government-led policy and regulation. The study further investigates whether the effect of CSR on earnings management and tax avoidance is different for state-owned and private enterprises by partitioning the sample into these two subgroups. Findings The findings of this study show that government-guided CSR could be effective in reducing the firms’ earnings management and tax avoidance, even though the effect is limited to state-owned enterprises. Originality/value This paper provides new evidence on the relation of CSR with earnings management and tax avoidance in the Chinese context and sheds light on the importance of differentiating between the state-owned and private enterprises when studying the corporate behaviors of Chinese firms.

Does board gender enhance Palestinian firm performance? The moderating role of corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed W.A. Saleh ◽  
Mohammad A.A. Zaid ◽  
Rabee Shurafa ◽  
Zaharaddeen Salisu Maigoshi ◽  
Marwan Mansour ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Panel Data ◽  
Social Responsibility ◽  
Gender Diversity ◽  
Content Type ◽  
Listed Firms ◽  
Board Gender Diversity ◽  
Corporate Social

Purpose This study aims to examine how the salient board gender diversity among board directors affects firm performance both directly and indirectly, through the role of corporate social responsibility (CSR) in listed firms on the Palestine Stock Exchange over the period 2010–2017. Design/methodology/approach Based on panel data of 384 observations from all firms listed on the Palestine Security Exchange during the period from 2010 to 2017, this study uses panel data regression to examine the effect of the predictors on firm performance. In addition, to mitigate the endogeneity issue, the analysis was repeated by using one-step generalized method of moments. Findings The results show that board gender diversity has a positive and insignificant influence on firm performance. However, under the moderating effect of CSR, the finding turns from positive insignificant to positive significant. Originality/value The study is timely given that gender diversity plays pivotal roles in determining the performance in terms of monitoring and controlling and further willing to engage in social responsibility. The prior research in Palestine has never investigated the effect of board gender diversity. As such, Palestine has not established a legal quota of minimum female representation on boards, and because of it, the country has weak women’s representation among firms. It, therefore, becomes a necessity to examine the influence of board gender diversity on the financial performance of listed firms in Palestine. Besides, the mixed result in previous literature on the board gender diversity and firm performance indicates that there is an indirect effect that needs alternative explanations.

Corporate social responsibility (CSR), ethical climate and pride in membership moderated by casino dealers’ customer orientation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martin Yongho Hyun ◽  
Lisa Gao ◽  
Seoki Lee
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Ethical Climate ◽  
Customer Orientation ◽  
Equation Modeling ◽  
Empirical Examination ◽  
Content Type ◽  
Corporate Social ◽  
Moderating Role

Purpose This study aims to develop a theoretical framework that specifies how corporate social responsibility (CSR) and ethical climate (ETHIC) affect pride in membership (PRIDE), and in turn, attitudinal responses (i.e. job satisfaction and turnover intention) among employees, solely focusing on dealers in the casino industry. In addition, the moderating role of customer orientation is examined for internally motivated enjoyment (ENJOY) and externally motivated needs (NEED). Design/methodology/approach This study uses a non-probability convenience-sampling method by distributing 400 individual questionnaires to respondents. A total of 358 responses are used for data analysis using exploratory and confirmatory factor analyses. Furthermore, this study tests the proposed hypotheses using structural equation modeling. Findings This study finds the effect of CSR on ETHIC and the effect of ETHIC on PRIDE along with the subsequent effect on attitudinal responses. Findings also reveal a significant moderating role of ENJOY (NEED) on the relationship between ETHIC (CSR) and PRIDE (PRIDE). Research limitations/implications This study provides meaningful contributions to extant casino CSR literature, as well as opportunities for future research. The topic may be further explored from cross-cultural perspectives and adapt a methodology to enhance the generalizability and applicability of the findings. Originality/value This study attempts to explore the CSR effectiveness on casino dealers, in whom past empirical examination has found little interest. Moreover, according to the multi-experience model, this study investigates the relationships among CSR, ethical climate and pride in membership that have been rarely verified in the past literature. Finally, this study reveals a significant moderating role of ENJOY and NEED that has not been explored, particularly among casino dealers.

scholarly journals The role of brand love on bank customers' perceptions of corporate social responsibility

2021 ◽  
Vol 39 (1) ◽  
pp. 189-208
Author(s):  
Hayford Amegbe ◽  
Michael D. Dzandu ◽  
Charles Hanu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Loyalty Program ◽  
Brand Love ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

PurposeThe lovemarks theory (love and respect) is fairly new to the marketing literature and is now gaining much attention among marketing scholars. The study examined how brand love and brand respect moderate the relationship between corporate social responsibility (CSR), trust (TRUS), satisfaction (SAT) and loyalty (LOY) among bank customers in an emerging/and or a developing country's context.Design/methodology/approachA quantitative survey approach was used. Data from a total of 769 banking customers, containing demographic and psychographic measures were used.FindingsThis study tested six (6) hypotheses. The results confirmed the moderating role of brand respect on the relationship between CSR and TRUS in the banking sector. Also, our results reveal that BLOV moderates the relationship between SAT and LOY. The rest of our hypotheses did not confirm any significant relationship between them.Research limitations/implicationsLike any academic exercise, this study also has some limitations. The hypotheses tested for brand love on bank customers' perceptions of CSR were based on a country study. The implication of brand love for CSR may be the same or vary in different country contexts.Practical implicationsThe study provides managers of banks and managers of financial institutions a better understanding of how love and respect could play a role in their loyalty program and how to incorporate these new constructs into the already known constructs such as satisfaction, trust and loyalty.Originality/valueThis study is unique because it quantitatively examined the relationships between well-researched constructs corporate social responsibility (CSR), trust (TRUS), satisfaction (SAT) on loyalty (LOY) as well as examining these constructs with a fairly new constructs brand love (BLOV) and respect (BRES) in a single study.

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

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
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.

Corporate social responsibility performance and information asymmetry: the moderating role of ownership concentration

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ijaz Ur Rehman ◽  
Syeda Khiraza Naqvi ◽  
Faisal Shahzad ◽  
Ahmed Jamil
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Ownership Concentration ◽  
Method Of Moment ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

Purpose This paper aims to examine the moderating effect of ownership concentration on the relationship between corporate social responsibility performance (CSRP) and information asymmetry using a sample of Chinese firms. Design/methodology/approach The authors use a sample of 208 listed firms from nine different sectors in China over the period of 2008–2018. They use the generalized method of moment approach to examine the dynamic relationship between CSRP, information asymmetry and ownership concentration. CSRP index is constructed using environmental performance, social performance and corporate governance performance measures. Findings The results indicate that CSRP positively affects the information asymmetry. Moreover, by taking ownership concentration as a moderating variable, the results indicate that ownership concentration negatively moderates the association between CSRP and information asymmetry. Research limitations/implications The findings of the study advance the understanding of CSR practices in China. The findings have important implications for the regulators and managers in China for adopting socially responsible activities for the improvement of firm performance and protecting shareholder rights. Originality/value The study extends the existing research on the association between CSRP and information asymmetry by including the ownership concentration as a moderating variable. The research showed that CSR plays an important role in reducing the informational gap between managers and outside stakeholders. However, the relationship between CSR and information asymmetry is not studied yet with the moderating role of ownership concentration.

scholarly journals The Effect of Independent Director Reputation Incentives on Corporate Social Responsibility: Evidence from China

2018 ◽  
Vol 10 (9) ◽  
pp. 3302 ◽  
Author(s):  
Lei Yu ◽  
Daojuan Wang ◽  
Qi Wang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Size ◽  
Independent Directors ◽  
Independent Director ◽  
Effective Mechanism ◽  
Listed Firms ◽  
System Protection ◽  
Corporate Social

This paper examines the effect of independent director reputation incentives on corporate social responsibility (CSR). Using an unbalanced panel of 3765 Chinese-listed firms between 2009 and 2014, this study suggests that independent director reputation incentives improve CSR. Furthermore, it is found that this effect is more pronounced in non-state-owned enterprises (non-SOEs) than in state-owned enterprises (SOEs). In addition, our results also show that the effect of independent director reputation incentives on CSR is moderated by firm size, and this effect is much stronger in relatively larger firms. Together, these results suggest that reputation is an effective mechanism that can motivate independent directors to fulfill their role of monitoring and advising CSR, especially in non-SOEs and relatively larger firms. We add new insights to the research on the topics of independent director system, protection of the stakeholders’ interests, and CSR enhancement.

Corporate social responsibility and hospital brand advocacy

2019 ◽  
Vol 14 (1) ◽  
pp. 159-174 ◽  
Author(s):  
Yam B. Limbu ◽  
Long Pham ◽  
Manveer Mann
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Public Hospitals ◽  
Hospital Type ◽  
Content Type ◽  
Stakeholder Groups ◽  
Brand Advocacy ◽  
Corporate Social ◽  
Moderating Role

Purpose This study aims to examine relationships between corporate social responsibility (CSR) toward two key stakeholder groups – patients and society and hospital brand advocacy, and the mediating role of trust and patient-hospital identification (PHI) and the moderating role of hospital type on these associations. Design/methodology/approach The sample of 455 hospital patients was surveyed in Vietnam. Findings The results suggest that both CSR toward society and patients are positively related to brand advocacy. The influence of CSR toward patients on brand advocacy was stronger for private hospitals than public hospitals. Trust and PHI independently and partially mediate relationships between both stakeholder groups of CSR and brand advocacy with the exception of the trust, which fully mediates the relationship between CSR toward society and brand advocacy. Trust and PHI serve as serial mediators. Practical implications Hospitals can promote patients’ organic word of mouth through CSR initiatives and focusing on the reliability, safety and quality of care. Originality/value This study examines the mediation effects of trust and PHI and moderating role of hospital type in the relationships between two components of CSR effort and hospital brand advocacy.

scholarly journals Does Corporate Social Responsibility Reduce Earnings Management? The Moderating Role of Corporate Governance and Ownership

2019 ◽  
Vol 23 (2) ◽  
pp. 45-55 ◽  
Author(s):  
Aymen Ajina ◽  
Faten Lakhal ◽  
Sabrine Ayed
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Ownership Structure ◽  
Management Practices ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

The purpose of this paper is to investigate the relationship between corporate social responsibility and earnings management and the moderating effect of corporate governance and ownership structure on this relationship. Using panel data for a sample of French listed companies between 2010 and 2013, we find that CSR engagementconstrain earnings management practices suggesting that managers would comply with the ethical requirements and satisfy stakeholders’ interests. The results also show that the effect of CSR on earnings management is particularly stronger in more independent boards and with high institutional ownership structure. These corporate governance devices help mitigating managerial opportunistic behavior.

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