Effect of target-and-incentive-consistency of unexpected positive earnings news on investors’ responses to corporate social responsibility performance

2019 ◽  
Vol 31 (1) ◽  
pp. 63-83 ◽  
Author(s):  
Lei Wang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Investment Strategy ◽  
Financial Information ◽  
Information Support ◽  
Policy Makers ◽  
Content Type ◽  
Nonfinancial Information ◽  
Pricing Decisions ◽  
Corporate Social

Purpose This study examines the effect of target-and-incentive-consistency of unexpected positive earnings news on investors’ use of corporate social responsibility (CSR) performance information in their pricing decisions. Design/methodology/approach A 2 × 2 full factorial between-participants experiment is conducted. Findings Target-and-incentive-consistency of unexpected positive earnings news moderates the effect of CSR performance on investors’ pricing decisions. Research limitations/implications Its findings shed insights on investors’ use of a mix of CSR, financial and governance information, support the financial information elasticity effect and add to the effect of financial information on investors’ use of nonfinancial information. Practical implications The effect of inelastic financial information in mitigating the CSR information effect can benefit investors who do not plan to use a CSR investment strategy. Knowledge of investors’ conditional use of CSR information can benefit firm managers and policy makers. Originality/value Its findings support a heretofore unexamined theoretical underpinning for the effect of financial information on investors’ use of nonfinancial information.

Corporate social responsibility, market reaction and accounting conservatism

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xixi Shen ◽  
Kung-Cheng Ho ◽  
Lu Yang ◽  
Leonard Fong-Sheng Wang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Disclosure ◽  
Market Reaction ◽  
Financial Information ◽  
Accounting Conservatism ◽  
Estimation Methods ◽  
Financial Policy ◽  
Content Type ◽  
Corporate Social

Purpose Non-financial information disclosure may reflect the quality of corporate financial reports or disclosure policy choices. The authors examine the relationship between corporate social responsibility (CSR) and accounting conservatism and also investigate channels through which such effects are transmitted. The purpose of this paper is to explore how CSR, as non-financial information that has received widespread attention, affects choices regarding corporate financial policy. Design/methodology/approach Using ordinary least squares regression, the authors analyze China CSR Score data for 2010–2018. They control certain influencing variables related to the nature and characteristics of enterprises and discover that CSR can effectively increase accounting conservatism. Then, they extract the components of market reactions to CSR and study the market reaction path of CSR as it affects financial policy. They also conduct a robustness test to ensure that the results are not accidental in a complex environment. Findings The results reveal the influence of non-financial information on firms’ financial policy. In addition, the results confirm the attraction of liquidity and investor attention as the major market reaction channels by which CSR significantly promotes accounting conservatism. Additionally, other critical paths of influence deserve further exploration. The results remain robust for alternate measures of accounting conservatism, different components of CSR, other proxies on CSR, endogenous testing and alternate estimation methods. Originality/value The study represents the first analysis of the influence of CSR information disclosure on accounting conservatism in emerging markets, and it undertakes a preliminary exploration to clarify the mechanism of CSRs’ role in accounting conservatism. The results also provide a policy reference for external supervision and internal governance of enterprises. Thus, the results can help company managers maintain a favorable corporate image and establish a high-level investor protection mechanism.

Impact of corporate social responsibility practices on organizational performance: an ISO 26000 perspective

2014 ◽  
Vol 10 (3) ◽  
pp. 455-479 ◽  
Author(s):  
Changiz Valmohammadi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Organizational Performance ◽  
Community Involvement ◽  
Cross Sectional ◽  
Policy Makers ◽  
Content Type ◽  
Iso 26000 ◽  
Core Subjects ◽  
Corporate Social

Purpose – This study aims to provide reliable and valid constructs of corporate social responsibility (CSR) and a measurement instrument in the context of Iranian organizations based on the seven core subjects of International Organization for Standardization (ISO) 26000 standard. It also examines the effects of these seven CSR criteria, namely, organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues and community involvement, and development on the organizational performance of Iranian organizations. Design/methodology/approach – Through an extensive study of literature review, the related items of these core subjects were identified. Data for the study were collected from 207 Iranian manufacturing and service firms. The research model was tested using structural equation modeling. Findings – Statistical analysis revealed that a number of significant relationships between CSR practices and organizational performance of Iranian organizations. The result found that community involvement and development plays an important role in enhancing organizational performance of organizations. Research limitations/implications – First, the time sequence of the association between the variables could not be concluded, given that cross-sectional data were used. A future study is suggested to conduct a longitudinal research design to present the evidence of causation which cannot be achieved through cross-sectional designs. Second, this study was limited to Iran. Hence, the findings and conclusions drawn from this research are representative of the Iranian context only. Hence, final results should be considered with caution. Practical implications – This study offers a number of implications for Iranian managers and policy-makers. First, this study identified that there is a relationship between CSR practices based on the seven core subjects of ISO 26000 and firm performance in the context of Iran. Second, the instrument developed, in this research, will be very useful to policy-makers in various industries of Iran as a tool for evaluating the effectiveness of their current CSR practices and initiatives. Third, decision-makers can also prioritize the CSR practices on which their firms should focus to improve their organizational performance. Originality/value – The novelty of this research is to determine the related items of the core subjects of ISO 26000 as the main factors and offer an instrument to measure the effects of various CSR practices on organizational performance of Iranian firms in the context of Iran.

Corporate social responsibility disclosure

2017 ◽  
Vol 8 (1) ◽  
pp. 2-19 ◽  
Author(s):  
Joanna Krasodomska ◽  
Charles H. Cho
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Analysts ◽  
Financial Information ◽  
Computer Assisted ◽  
Snowball Sampling ◽  
Online Questionnaire ◽  
Content Type ◽  
Frequent Use ◽  
Corporate Social

Purpose The purpose of this study is to examine the usage of non-financial information related to corporate social responsibility (CSR) issues from the perspective of sell-side analysts (SSAs) and buy-side analysts (BSAs) employed in Poland-based financial institutions. Design/methodology/approach The authors conducted a survey among financial analysts with the use of the computer-assisted telephone interview (CATI) method and an online questionnaire. The adopted methods included purposeful, quota sampling and snowball sampling. Findings Results indicate that financial analysts make use of CSR disclosures very rarely and attribute little importance to such information. Despite the limited use of CSR information and negative assessments of its quality, respondents are in favor of making a more frequent use of CSR disclosures. Finally, except for an analyst’s attitude toward the “comparability in time” information characteristic, results do not indicate any significant differences between SSAs’ and BSAs’ responses. Research limitations/implications The limited number of questionnaires prevented the use of more sophisticated statistical methods and the formulation of conclusions that could apply to the entire population. In addition, although the adopted CATI method provides a number of advantages, it also has its limitations – interviews had limited time and the questions along with the answers had to take into account the respondents’ limited perception ability. Practical implications The results of this study suggest that CSR disclosures have limited usage for financial analysts, at least in the Polish context. Further, not only do respondents rarely make use of CSR disclosures but they also give low assessments to their quality. This implies that the concept of CSR remains relatively far from becoming a priority; hence, some measures and incentives may be necessary. Originality/value The paper adds to a relatively small number of studies that have dealt with the issue of non-financial information and its usefulness for SSAs and BSAs in Central and Eastern Europe.

scholarly journals Sustainable development in accounting

2021 ◽  
pp. 125-134
Author(s):  
Marzena Remlein
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Financial Information ◽  
Accounting Systems ◽  
Nonfinancial Information ◽  
Voluntary Standards ◽  
Corporate Social

The purpose of this chapter is to present and discuss the essence and importance of accounting in the concept of sustainable development. Considerations are particularly focused on reporting CSR issues. The growing importance of the idea of sustainable development and the concept of Corporate Social Responsibility that arose on its basis, gave rise to the need for accounting systems to develop solutions enabling the provision of information on the methods and results of implementing these concepts in entities operating on the market. The interest in accounting with regard to the area of sustainable development has contributed to the development of vocabulary related to measurement, calculation, disclosure, reporting and verification of information on the activities of units for sustainable development. Reporting on Corporate Social Responsibility (CSR) is still largely voluntary and non-standardised. However, there are various international organisations that develop frameworks and voluntary standards for non-financial reporting, the so-called Social Reporting Standards. The most important EU legislative initiative in the field of disclosure concerning environmental, social and corporate governance information is Directive 2014/95/EU of the European Parliament and Council from 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity in formation by certain large undertakings and groups. The combination of financial information (financial statements) with non-financial information relating to the environment, society and corporate governance is included in the integrated report. In Poland, the requirement to present non-financial information related to CSR was introduced by the Accounting Act. Polish companies should prepare a separate report—“Statement on nonfinancial information”. In 2017, the Polish Standard of Non-Financial Information (SIN, 2017) was published to help enterprises fulfil their obligations under the EU Directive.

Examining the effect of employee green involvement on perception of corporate social responsibility

2019 ◽  
Vol 30 (1) ◽  
pp. 197-210 ◽  
Author(s):  
Anugamini Priya Srivastava ◽  
Sonal Shree
Keyword(s):  
Factor Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stakeholder Management ◽  
Hierarchical Regression ◽  
Policy Makers ◽  
Ongoing Research ◽  
Content Type ◽  
Confirmatory Factor ◽  
Corporate Social

PurposeThe purpose of this paper is to understand the extent to which green involvement (GI) can affect employee perception of corporate social responsibility (CSR), with the intervening role of green training (GT).Design/methodology/approachThe sample for the study was collected from employees working in tourist hotels. Exploratory factor analysis and confirmatory factor analysis was conducted to assess the fit of the hypothesized model, and hierarchical regression analysis to test the hypothesis.FindingsThe results showed that GI of employees has a positive and significant relationship with their perception of CSR. The study further revealed that when there is an increase in GT, the relationship between GI and perception of CSR gets more positive.Originality/valueIt adds value to the ongoing research in the field of environment, training and CSR. The findings will be helpful for policy makers and researchers in the field of stakeholder management.

Does CFO accounting expertise matter to corporate social responsibility disclosure in 10-Ks?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jun Guo ◽  
Sungsoo Kim ◽  
Yang Yu ◽  
Jung Yeun (June) Kim
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Annual Reports ◽  
Personal Attributes ◽  
Policy Makers ◽  
Content Type ◽  
Accounting Expertise ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

PurposeThe study aims to understand the role of accountant in corporate social responsibility (CSR) practice.Design/methodology/approachIn this study, the authors examine whether and how chief financial officer (CFO) accounting expertise and previous work experience influence voluntary CSR disclosure, using textual analysis and natural language processing (NLP) techniques. The authors find that firms' CFOs with accounting expertise disclose more CSR issues in their 10-K reports. Overall, this study provides evidence of the impact of CFOs' professional and personal attributes on voluntary CSR disclosure in corporate annual reports. This study has important implications to investors and policy makers in the context of CSR disclosure regulations in annual reports.FindingsOverall, this study provides evidence of the impact of CFOs' professional and personal attributes on voluntary CSR disclosure in corporate annual reports. This study has important implications to practitioners and policy makers in the context of CSR disclosure regulations in annual reports.Research limitations/implicationsThere is an inherent limitation of textual analysis as the tool tries to read key words from the text.Practical implicationsThis finding is useful for policy maker and investors as CSR is known to have impact on the share price.Originality/valueThis paper is the first attempt to find out accountants' role in CSR activities, which has not been examined in the prior literature.

Abraaj Capital Limited: Celebration of Entrepreneurship (CoE)

2011 ◽  
Vol 1 (4) ◽  
pp. 1-25 ◽  
Author(s):  
Melodena Stephens Balakrishnan ◽  
Ian Michael
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Marketing Strategy ◽  
Stakeholder Engagement ◽  
Private Equity ◽  
Ecosystem Development ◽  
Event Management ◽  
Policy Makers ◽  
Content Type ◽  
Corporate Social

TitleAbraaj Capital Limited: Celebration of Entrepreneurship (CoE).Subject areaStrategic stakeholder engagement, entrepreneurialism, ecosystem, corporate social responsibility, event management, branding, marketing strategy.Study level/applicabilityPost‐graduate level, practitioners interested in MENSA Region, entrepreneurship policy makers and NGOs.Case overviewAbraaj Capital Ltd (Abraaj), a highly reputed private equity investment and management company, strongly believed in corporate social responsibility, strategic stakeholder engagement and entrepreneurship ecosystem development. In November, 2010, Abraaj held the “Celebration of Entrepreneurship” (CoE) a two‐day free entrepreneur event, in Dubai. CoE was attended by more than 2,400 participants. The purpose of CoE was to contribute to building an entrepreneurship ecosystem in the Middle East North Africa South Asia region (MENASA). Based on participant feedback, CoE Outcomes and stakeholder feedback, the event was very successful.This case is a good example of community engagement and showcases entrepreneurship ecosystem development. This case also highlights the challenges of putting together a signature event in a very short time frame. The future management dilemmas are also raised on various issues like whether to make this successful event a regular part of their organizational activities, and issues concerning the funding of such events. This case can be used to teach event management, branding, marketing strategy, CSR and entrepreneurship (from the ecosystem point of view). It will appeal to both educationalists and practitioners interested in the MENASA region, policy makers who facilitate entrepreneurship, CSR managers, event management companies and marketing specialist. It can be used to teach both undergraduate and postgraduate courses.Expected learning outcomesStrategy students can focus on marketing and branding strategies; like stakeholder engagement, internal marketing, social media, positioning and brand architecture. Student of event management can learn about prioritizing, adaptability, funding and the complexity of layering a program.Supplementary materialsTeaching notes, videos.

Corporate social responsibility and earnings management in the EU: a panel data analysis approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Panagiotis E. Dimitropoulos
Keyword(s):  
Corporate Social Responsibility ◽  
Panel Data ◽  
Social Responsibility ◽  
Earnings Management ◽  
Financial Reporting ◽  
Negative Association ◽  
Content Type ◽  
Corporate Social ◽  
The Eu

Purpose Over the past decades, corporate social responsibility (CSR) has been considered as a significant corporate strategy and also has been documented as a main information dissemination mechanism of corporations to shareholders, creditors and other external stakeholders. This fact makes the CSR activities and CSR performance interconnected with the quality of firms’ financial reporting. The purpose of this paper is to study the impact of CSR performance on the earnings management (EM) behaviour using a sample from 24 European Union (EU) countries summing up to 121,154 firm-year observations over the period 2003–2018. Design/methodology/approach The study uses a multi-country data set with various dimensions of CSR performance including indexes regarding workforce, community relations, product responsibility and human rights protection. The empirical analysis is conducted with panel data regressions. Findings Evidence supports the negative association between CSR and EM indicating that high CSR performing firms are associated with less income smoothing and discretionary accruals, thus with higher financial reporting quality. Practical implications Regulatory agencies in the EU could use the findings of the study for the improvement of the accounting framework via enhancing the use and publications of social and environmental responsibility information and reports. Social implications Also, the current paper could be of interest not only to academic researchers but also to potential and existing investors in European corporations. The negative association between CSR performance and EM could be used by investors in assessing the risk of firms and the quality and reliability of their financial information. Originality/value This is the first study within the EU, which considers the multi-facet characteristics of CSR on the quality of accounting earnings and offers useful policy implications for regulators and investors.

Consequences of corporate social responsibility on employees

2019 ◽  
Vol 49 (1) ◽  
pp. 231-249
Author(s):  
Evans Asante Boadi ◽  
Zheng He ◽  
Eric Kofi Boadi ◽  
Josephine Bosompem ◽  
Philip Avornyo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Exchange ◽  
Structural Equation ◽  
Social Exchange Theory ◽  
Banking Sector ◽  
Work Motivation ◽  
Content Type ◽  
Time Lagged ◽  
Corporate Social

Purpose The purpose of this paper is to draw on affect social exchange theory and related literature to develop and test a research model linking employees’ perception of corporate social responsibility (CSR) to their outcomes [performance and organisational pride (ORP)] with moderating variables: perceived work motivation patterns (autonomous and controlled motivation) to sustain firm’s operations through their employees. Design/methodology/approach The authors used Ghana as a case for this study due to recent turbulences in the banking sector of Ghana. A sample data of 244 subordinate/supervisor dyads from rural and community banks was collected with a time-lagged technique and analysed through a structural equation modelling for this study. Findings These employee’s perceptions of CSR positively related to their performance and ORP. Autonomous motivated employees had a stronger positive moderated impact on perceived CSR-Performance link whereas controlled motivated employees recorded a stronger impact on perceived CSR-ORP link. Practical implications Based on these results, managers and human resource (HR) professionals can aim at acquiring favourable employees’ perception of their firms’ CSR initiatives. In that, it can help firms to remain in business particularly in difficult times. Also, autonomous and controlled motivators may seem inversely related, however, they are not contradictory to each other. Both can coexist within a firm and it is crucial that HR professionals and managers endeavour to balance them discreetly to attain organisational goals. Originality/value Despite the growing interest in CSR across continents, CSR outcomes on employees among small and medium scale firms especially in Africa has fairly been toned-down by respective management of firms, governments and researchers.

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