The reciprocal and nonlinearity relationship between corporate social responsibility and market value added: case study in Indonesia

2020 ◽  
Vol 38 (3) ◽  
pp. 405-417
Author(s):  
John Agustinus
Keyword(s):  
Social Responsibility ◽  
Stock Price ◽  
Positive Relationship ◽  
Value Added ◽  
Market Value ◽  
Content Type ◽  
Parametric Regression ◽  
Market Value Added ◽  
Corporate Social ◽  
The Relationship

PurposeThis study aims to examine the relationship between corporate social responsibility (CSR) and market value added (MVA) through a more comprehensive analysis of the relationship between the two variables.Design/methodology/approachThe population used in this study is all companies listed on the IDX. Sample selection is done by purposive sampling method where the criteria chosen in this research are: listed on the IDX during 2010–2016 and published its annual financial statements completely. The analysis tools using panel parametric regression are based on the reciprocal relationship (MVA related to CSR, and CSR related to MVA). This model should be linearity, based on RESET test. On the other hand, an alternative model is based on a nonlinearity relationship (the linearity of parametric regression is not fulfilled), the modified panel nonparametric regression (accommodates the reciprocal and nonlinearity relationship).FindingsSocial responsibility or CSR shows a positive relationship with MVA, also the MVA has a positive relationship with CSR. This means that when CSR value increases, then MVA also increases, vice versa. When the company discloses CSR, the company maintains good relationships not only with its shareholders but also with other stakeholders including the community and its environment. Therefore, it can enhance the company's perception and reputation to shareholders that the company is a responsible company, in the sense of being responsible not only to shareholders but also to other stakeholders. This then makes shareholders interested to invest their capital in companies with good CSR. Increased capital by shareholders in the form of stock purchases can affect the high or low stock price of a company; if the company price is high, then the higher the value of its MVA because the stock price is an element of MVA.Originality/valueBased on the aforementioned phenomenon, the relationship has the reciprocal characteristics, which means that CSR has a relationship with MVA; on the other hand, MVA also has a relationship with CSR (with a different time lag). Also, this study detects the nonlinearity relationship between variables shown in Fernandes and Fresly (2017). This part as the originality of this paper focused on the reciprocal and nonlinearity relationship between CSR and MVA.

scholarly journals Pengaruh Corporate Social Responsibility (CSR) Pada Market Value Added (MVA) Perusahaan Manufaktur Dan Pertambangan

2016 ◽  
Vol 6 (2) ◽  
Author(s):  
Rezi Setin Novian ◽  
Santi Novita
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Disclosure ◽  
Value Added ◽  
Market Value ◽  
Social Aspects ◽  
Market Value Added ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Positive Effect

Along with the increase of information disclosure needs by stakeholder, the companies are not only demanded to be responsible for merely economic aspect but also environmental and social aspects. The objective of this research to provide the evidence of the effect of Corporate Social Responsibility (CSR) disclosure to the companies performance using Market Value Added (MVA). The research is using manufacturing and mining companies that listed in Bursa Efek Indonesia (BEI) from the year 2007 to 2011 as samples. The hypothesis was tested using t test and the result of this study is Corporate Social Responsibility (CSR) has positive effect on Market Value Added (MVA).

scholarly journals Picking low hanging fruit? Synergies between strategic quality management and corporate social responsibility

2018 ◽  
Vol 24 (6) ◽  
pp. 1393-1411
Author(s):  
Talal Mohammad Alsaif ◽  
Barbara M. Savage ◽  
Deborah M. Reed
Keyword(s):  
Corporate Social Responsibility ◽  
Quality Management ◽  
Social Responsibility ◽  
Research Study ◽  
Value Added ◽  
Content Type ◽  
Corporate Social ◽  
Strategic Quality Management ◽  
The Relationship ◽  
Practical Implications

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.

The relationship between intellectual capital, firms’ market value and financial performance

2015 ◽  
Vol 16 (3) ◽  
pp. 587-618 ◽  
Author(s):  
Sirinuch Nimtrakoon
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Relationship ◽  
Value Added ◽  
Market Value ◽  
Relational Capital ◽  
Content Type ◽  
Capital Efficiency ◽  
Asean Countries ◽  
The Relationship

Purpose – The purpose of this paper is to explore and compare the extent of intellectual capital (IC) and its four components among ASEAN countries, and examine the relationship between firms’ IC, market value, and financial performance. Design/methodology/approach – The study uses the data of 213 technology firms listed on five ASEAN stock exchanges. Pulic’s Value Added Intellectual Coefficient model is modified by adding an extra component, namely, relational capital efficiency (RCE). The Kruskal-Wallis one-way ANOVA and multiple regression analysis have been utilized to test the hypotheses. Findings – The results reveal that there is no significant difference in Modified Value Added Intellectual Coefficient (MVAIC) across five ASEAN countries; however, firms in each country tend to place a different degree of emphasis on components of MVAIC to generate corporate value. The results further indicate a positive relationship between IC and market value, confirming that firms with greater IC tend to have greater market value. Likewise, a positive relationship between IC and financial performance measures is confirmed. Specifically, IC is found to be positively associated with margin ratio and return on assets. Capital employed efficiency and human capital efficiency are found to be the most influential value drivers for both market value and financial performance while structural capital efficiency and relational capital efficiency possess less importance. Originality/value – This study contributes to the IC literature by expanding our knowledge of IC in the emerging economies, and providing a national comparative IC research when such research is limited.

scholarly journals Corporate Social Responsibility And Financial Ratio on Market Value Added

2020 ◽  
Vol 1 (4) ◽  
pp. 256-263
Author(s):  
Diyah Santi Hariyani ◽  
L. H. Almira Salatnaya ◽  
D.Dwi Mardani
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Value Added ◽  
Market Value ◽  
Financial Ratio ◽  
Price Earnings Ratio ◽  
Equity Ratio ◽  
Market Value Added ◽  
Return On Sales ◽  
Corporate Social

The purpose of this study is to empirically examine the Effect of Corporate Social Responsibility (CSR) and Financial Ratio on Market Value Added (MVA), both simultaneously and partially. This research was conducted using a sample of 33 companies winning 2016 CSR and Top CSR 2017 Appreciation by determining their samples (purposive sampling) because there were certain considerations over a period of 2 years (2015-2016). The results of this study indicate that simultaneously the effect of CSR and Financial Ratio together does not significantly influence Market Value Added (MVA). And partially ISO9001, ISO14001, ISO26000, OHSAS18001, Current Ratio (CR), Debt to Equity Ratio (DER), Price Earnings Ratio (PER), Total Asset Turnover and Return on Sales do not significantly influence MVA. While partially only ESOP has a significant effect on MVA.  

scholarly journals Peran Market Value Added dalam Memoderasi Pengaruh Pengungkapan Corporate Social Responsibility terhadap Nilai Perusahaan

2019 ◽  
Vol 3 (1) ◽  
pp. 15
Author(s):  
Astrie Krisnawati ◽  
Sarah Khaerunnisha Fathiarani
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Value Added ◽  
Market Value ◽  
Market Value Added ◽  
Corporate Social

Perusahaan dan pelaku bisnis semakin dituntut agar tidak hanya berorientasi dalam memaksimalkan laba tetapi mampu memberikan kontribusi positif terhadap lingkungan dengan mengembangkan apa yang disebut dengan Corporate Social Responsibility. Penelitian ini bertujuan untuk mengetahui pengaruh pengungkapan CSR dengan nilai perusahaan menggunakan metode analisis regresi sederhana. Selain itu dalam penelitian ini juga menggunakan Market Value Added (MVA) sebagai variabel moderasi untuk mengetahui apakah MVA dapat memperkuat atau memperlemah hubungan antara CSR dengan nilai perusahaan dengan menggunakan metode analisis Moderate Regression Analysis (MRA). Pada penelitian ini terdapat tiga sampel perusahaan sektor transportasi dan infrastruktur yang terdaftar di Bursa Efek Indonesia tahun 2011 sampai dengan 2015, yaitu Samudera Indonesia, Mitra International Resources, dan Garuda Indonesia. Hasil penelitian ini menunjukan bahwa pengungkapan CSR tidak berpengaruh signifikan terhadap nilai perusahaan dengan nilai signifikasi sebesar 0,681 dan perolehan R square sebesar 0.013 atau 1.3% yang mana sisanya yaitu 98.7% dipengaruhi oleh variabel lain. Di samping itu, penelitian ini juga menyatakan bahwa Market Value Added (MVA) tidak berhasil memoderasi hubungan antara pengungkapan CSR dengan nilai perusahaan, artinya pengungkapan CSR tidak dapat meningkatkan nilai perusahaan pada saat MVA perusahaan tinggi dan sebaliknya.

scholarly journals ANALISIS PENGARUH CORPORATE SOCIAL RESPONSIBILITY (CSR) TERHADAP ECONOMIC VALUE ADDED (EVA) DAN MARKET VALUE ADDED (MVA)

2019 ◽  
Vol 7 (1) ◽  
pp. 107
Author(s):  
Aditia Abdurachman ◽  
Tieka Trikartika Gustyana
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Global Reporting Initiative ◽  
Economic Value Added ◽  
Market Value Added ◽  
Csr Disclosure ◽  
Corporate Social

Banyak dari perusahaan yang membuat program Corporate Social Responsibility (CSR) hanya untuk kepentingan marketing. Apalagi pelaksanaan program CSR oleh industri rokok yang tidak dapat menanggulangi efek yang terjadi akibat bisnis yang mereka lakukan. Bukannya melakukan usaha untuk mencegah hal tersebut, perusahaan industri rokok justru menghabiskan berapa puluh miliar setiap tahunnya untuk berbagai iklan dan sponsor. Penelitian ini bertujuan untuk mengetahui pengaruh dari program CSR yang diukur dengan CSR Disclosure Index (CSRDI) Global Reporting Initiative G4 (GRI-G4) terhadap nilai perusahaan yang diukur menggunakan Economic Value Added (EVA) dan Market Value Added (MVA).Objek penelitian ini adalah perusahaan industri rokok yang terdaftar di Bursa Efek Indonesia (BEI) pada tahun 2012-2016 yang dipilih secara purposive sampling dengan kriteria setiap perusahaan konsisten dalam menerbitkan laporan tahunan hasil audit periode 2012-2016. Pengolahan dan analisis data menggunakan regresi data panel. Hasil dari penelitian ini adalah CSR memiliki pengaruh negatif tidak signifikan terhadap EVA dan CSR memiliki pengaruh negatif tidak signifikan terhadap MVA.

Pengaruh Pengungkapan Corporate Social Responsibility (CSR) Pada Nilai Perusahaan

2011 ◽  
Vol 3 (2) ◽  
pp. 1-19
Author(s):  
Chermian Eforis ◽  
Rosita Suryaningsih
Keyword(s):  
Corporate Social Responsibility ◽  
Annual Report ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Market Value Added ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Simple Regression

This study aims to determine the influence of the level of CSR disclosure in annual report to corporate values that proxies with Economic Value Added (EVA) and Market Value Added (MVA).   The objects of this study are companies that were included in Kompas 100 Edition of the second review in 2010.The chosen model of this research is simple regression which can be defined as a model that used the normal probability plot  for data normality test, DurbinWatson test for autocorrelation, graph plots to test heteroscedasticity, and saw the value of tolerance and VIF for multicollinearity test. Hypothesis is analyzed using simple regression method  The results showed that the level of CSR disclosure contained in the annual report has a significant influence on the EVA. The same results were also found on the MVA, where the level of CSR disclosure contained in the annual report has a significant influence on the MVA. Key words: Corporate Social Responsibility, Economic Value Added, Market Value Added

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

Micro-loans and financial performance: a case of a Chinese commercial bank

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jasmine Alam ◽  
Mustapha Ibn Boamah ◽  
Yuheng Liu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Design Methodology ◽  
Annual Reports ◽  
Content Type ◽  
Overall Performance ◽  
Corporate Social ◽  
Corporate Social Responsibility Reports ◽  
The Relationship

Purpose This study aims to investigate the relationship between a commercial bank’s micro-loaning activity and overall performance over a 10-year period. Design/methodology/approach Quarterly data was obtained from the Wind Database, China Minsheng Banks’s official annual reports and annual corporate social responsibility reports from 2009 to 2019, to test the linear relationship between micro-loan activities and the overall financial performance of the bank. Findings The results of this study empirically demonstrate that there is a positive relationship between increases in micro-loaning activity and the overall performance of the bank. Some key recommendations for the sector are shared in the conclusion of this paper. Originality/value In the financial sector, some corporate social responsibility activities focus on the issuance of micro-loans. It is unclear, however, if this has also served as a means to increase profitability and overall performance for such institutions.

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