Corporate social responsibility and shareholder wealth: New insights from information spillovers

2021 ◽  
Author(s):  
Qi Ge ◽  
Ting Li
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Shareholder Wealth ◽  
Information Spillovers ◽  
Corporate Social

Corporate social responsibility, business group affiliation and shareholder wealth: evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eswaran Velayutham ◽  
Vijayakumaran Ratnam
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Market ◽  
Business Group ◽  
Shareholder Wealth ◽  
Group Affiliation ◽  
Content Type ◽  
Business Group Affiliation ◽  
Corporate Social ◽  
The Relationship

Purpose This paper aims to examine the relationship between corporate social responsibility (CSR) and shareholder wealth arising from announcement returns of security issuance from a frontier market. It also explores the role of business group affiliation (BGA) on this relationship. Design/methodology/approach The study uses short-term scenarios to examine the link between CSR and shareholder wealth using the event study methodology which helps us mitigate the reverse causality problems related to studies of the relationship between CSR and firm value. Abnormal returns surrounding the security issue announcements were generated using the market model. Findings This paper finds that security issuers with high CSR scores are associated with higher shareholder value. However, this paper finds that CSR activities of security issuers with BGA are value-destroying which is consistent with the agency perspective of CSR. Research limitations/implications This study is limited to only one nascent market, namely the Colombo Stock Exchange. Originality/value This study documents that CSR and BGA are important determinants, among others, of stock price reactions to security offerings in emerging markets.

scholarly journals Corporate Sociopolitical Activism and Firm Value

2020 ◽  
Vol 84 (5) ◽  
pp. 1-21 ◽  
Author(s):  
Yashoda Bhagwat ◽  
Nooshin L. Warren ◽  
Joshua T. Beck ◽  
George F. Watson
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Public Support ◽  
Shareholder Wealth ◽  
Theory And Practice ◽  
Marketing Theory ◽  
Stakeholder Relationships ◽  
Corporate Social ◽  
Sociopolitical Activism

Stakeholders have long pressured firms to provide societal benefits in addition to generating shareholder wealth. Such benefits have traditionally come in the form of corporate social responsibility. However, many stakeholders now expect firms to demonstrate their values by expressing public support for or opposition to one side of a partisan sociopolitical issue, a phenomenon the authors call “corporate sociopolitical activism” (CSA). Such activities differ from commonly favored corporate social responsibility and have the potential to both strengthen and sever stakeholder relationships, thus making their impact on firm value uncertain. Using signaling and screening theories, the authors analyze 293 CSA events initiated by 149 firms across 39 industries, and find that, on average, CSA elicits an adverse reaction from investors. Investors evaluate CSA as a signal of a firm’s allocation of resources away from profit-oriented objectives and toward a risky activity with uncertain outcomes. The authors further identify two sets of moderators: (1) CSA’s deviation from key stakeholders’ values and brand image and (2) characteristics of CSA’s resource implementation, which affect investor and customer responses. The findings provide new and important implications for marketing theory and practice.

scholarly journals Corporate social responsibility: the financial impact of black economic empowerment transactions in South Africa

2011 ◽  
Vol 12 (2) ◽  
pp. 180-193 ◽  
Author(s):  
Hendrik Wolmarans ◽  
Kurt Sartorius
Keyword(s):  
South Africa ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Listed Companies ◽  
Shareholder Wealth ◽  
Economic Empowerment ◽  
Wealth Creation ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
Corporate Social

Corporate social responsibility (CSR) has recently received considerable attention in literature. One of the vehicles by which companies can conform to CSR in South Africa is Black Economic Empowerment (BEE). In this regard, BEE has been employed to assist previously disadvantaged groups of investors obtain a larger share of the equity of South African listed companies. The question has often been asked whether the announcement of BEE transactions by listed companies increases shareholder wealth. This article tries to answer this question by examining the share performance of 125 BEE transactions involving 95 companies during the period January 2002 to July 2006. The results indicate a positive relation between BEE transaction announcements and shareholder wealth creation, but only during the last part of the period covered by the study.

Corporate Social Responsibility and Shareholder Wealth: The Role of Marketing Capability

2016 ◽  
Vol 80 (1) ◽  
pp. 26-46 ◽  
Author(s):  
Saurabh Mishra ◽  
Sachin B. Modi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Shareholder Wealth ◽  
Marketing Capability ◽  
Corporate Social

scholarly journals PENGARUH KINERJA KEUANGAN DAN CORPORATE SOCIAl RESPONSIBILITY (CSR) TERHADAP NILAI PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

2016 ◽  
Vol 11 (3) ◽  
Author(s):  
Angelika Natalia Joseph ◽  
Agus T. Poputra ◽  
Victorina Z. Tirayoh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Significant Influence ◽  
Linear Regression Analysis ◽  
Shareholder Wealth ◽  
Profit Margin ◽  
Value Analysis ◽  
Independent Variables ◽  
Corporate Social

The financial performance is an image of a quality company that is reflected through the financial performance in a given period. Corporate Social Responsibility (CSR) is the ability of the company to connect its operations and policies of the social environment in a way that is mutually beneficial for the company and the community. The company's value is the market value as the value of the company can deliver maximum shareholder wealth when the company's stock price to rise. The purpose of this study was to analyze the influence of corporate social responsibility (CSR), and the financial performance of the company's value. Object Manufacturing research company that totaled 143 company, but based on the completeness of data then only 18 companies into the sample with the observation period 2012 - 2015. The independent variables were the company's performance (return on assets, return on equity, Operating Profit Margin, Net Profit Margin) and Corporate Responsibility Cocial, while the enterprise value of the dependent variable (Price Book value). Analysis of the data used consisted of correlation analysis, determination analysis, t-test, f, and multiple linear regression analysis. The results of this study indicate that ROA and ROE have a significant influence on the value of the company, while OPM, NPM, and CSR does not have a significant influence on the value of the company. F test analysis results indicate that the independent variables namely financial performance and CSR affect the value of the company.   Keywords : corporate value, corporate social responsibility, corporate performance

Corporate Responsibility and the Embedded Firm

2019 ◽  
pp. 562-586
Author(s):  
Cynthia A. Williams
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Responsibility ◽  
Social Relationship ◽  
Shareholder Wealth ◽  
Regulatory Evolution ◽  
Business Corporation ◽  
The Social ◽  
Corporate Social ◽  
Finance Capitalism

This chapter examines institutional and political economy accounts of corporate social responsibility debates in law and business, and how those debates have been used to shape the social expectations of business and the view of firms as either oriented toward shareholders or stakeholders. The chapter brings a number of disciplinary perspectives to bear on the study of the regulatory evolution and relationship between firms, corporate governance, and labor in the transformation from industrial to finance capitalism. It engages with Karl Polanyi’s concept of embeddedness while reassessing the foundations of corporate social responsibility as an emerging trend. Ultimately it concludes that the problem to be solved in the corporate social relationship is the deeper one of the business corporation being conceptualized in narrow economic terms, and the fiduciary duties of directors being misconceptualized as to maximize shareholder wealth, even as the business corporation acts throughout the world today as a powerful social and political actor.

Rhetoric, Reality, and Reputation: Do CSR and Political Lobbying Protect Shareholder Wealth against Environmental Lawsuits?

2019 ◽  
Vol 55 (2) ◽  
pp. 679-706 ◽  
Author(s):  
Chelsea Liu ◽  
Chee Seng Cheong ◽  
Ralf Zurbruegg
Keyword(s):  
United States ◽  
Corporate Social Responsibility ◽  
Propensity Score ◽  
Social Responsibility ◽  
Propensity Score Matching ◽  
Shareholder Wealth ◽  
Federal Courts ◽  
Filing Date ◽  
Market Reactions ◽  
Corporate Social

We investigate whether firms’ corporate social responsibility (CSR) reputations and environmental lobbying efforts protect shareholder wealth in the event of environmental lawsuits. Using a sample of lawsuits filed in United States Federal Courts, we find that firms with superior CSR reputations suffer worse market reactions to environmental allegations. In contrast, lobbying cushions filing-date valuation losses, providing insurance-like protection against lawsuits. Our results are robust to subsample analyses, a falsification test, propensity score matching, and alternative empirical proxies and model specifications.

scholarly journals ANALYSIS OF EFFECT OF FIRM SIZE, INSTITUTIONAL OWNERSHIP, PROFITABILITY, AND LEVERAGE ON FIRM VALUE WITH CORPORATE SOCIAL RESPONSIBILITY (CSR) DISCLOSURE AS INTERVENING VARIABLES (Study on Banking Companies Listed on BEI Period 2012-2016)

2019 ◽  
Vol 27 (2) ◽  
pp. 95
Author(s):  
Fitria Yuni Astuti ◽  
Sugeng Wahyudi ◽  
Wisnu Mawardi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Size ◽  
Firm Value ◽  
Positive Impact ◽  
Linear Regression Analysis ◽  
Institutional Ownership ◽  
Shareholder Wealth ◽  
Csr Disclosure ◽  
Corporate Social

The main objective of the company survives in the stringent competitive by maximizing the value of the company to shareholder wealth. Firm value is experiencing a downward trend is a problem that must be resolved. The banking company also undertakes a social responsibility that is perceived to have a positive impact on the company's image. This study aimed to analyze the effect of the firm size, institutional ownership, profitability, and leverage with corporate social responsibility (CSR) disclosure as a variable intervening.Populations are banking companies listed on the Indonesia Stock Exchange Period 2012-2016. Sampling technique used is purposive sampling with 29 companies selected according to predetermined criteria. This research is done by using multiple linear regression analysis methods and path analysis also Sobel test to examine the effect of intervening. Test results with CSRD as the dependent variable indicate that institutional ownership and Leverage have no effect on CSRD While firm size and profitability (ROA) have a positive significant effect on CSRD. The result of testing with Firm Value (Tobins'Q) as the dependent variable indicates that Firm Size, Institutional Ownership, and Profitability (ROA) have no effect on Firm Value (Tobins'Q). Leverage (DAR) has a negative and significant influence on Firm  Value (Tobins'Q) while CSRD has a significant positive effect on Firm Value (Tobins'Q). CSRD does not mediate the effect of Institutional Ownership, Profitability (ROA) and Leverage (DAR) on Firm Value (Tobins'Q). CSRD mediates the effect of Firm Size on Firm Value (Tobins'Q).

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