scholarly journals The effect of corporate social responsibility on Malaysian financial institutions' dividend payout

F1000Research ◽  
2022 ◽  
Vol 11 ◽  
pp. 47
Author(s):  
Abdullah Sallehhuddin ◽  
Teo Boon Keong ◽  
Norzarina Md Yatim

Background: The corporate social responsibility (CSR) disclosure was made mandatory in Malaysia in 2007 with the introduction of the CSR Framework by Bursa Malaysia. Since then, the practice of CSR disclosure is growing, as Malaysia joins global efforts towards sustainable development. Despite increased research on CSR; limited studies are assessing the relationship of specific dimensions – environmental, community, workplace and marketplace, towards dividend payout, which is crucial to investment and corporate financial decision making.  Method: The study involved 32 Malaysian public listed finance companies as of 2017. It deployed data from annual reports and databases. Additionally, the study used content analysis to measure the CSR disclosure score, and dividend payout was calculated from the database.   Results: There was a significant correlation between community and workplace dimensions with dividend payout. Despite the absence of significant results, the regression analysis showed a positive relationship between community and workplace dimensions with dividend payout. Besides, there was an inverse relationship between the environmental and marketplace dimension with dividend payout. The results indicated that active involvement in the community dimension resulted from an immediate positive impact towards brand equity, attracting current and new customers, and therefore improving the earning levels and dividend payout. Additionally, greater participation in the workplace dimension solidifies employees' engagement and motivation, improves the productivity level, which can be translated into enhanced earning levels and dividend payout. Meanwhile, participation in environmental and marketplace dimensions requires a longer period to yield an impact, higher development expenditure, and involve sensitive information that might benefit competitors. Hence, companies tend to utilise internal funding instead of redistributing the wealth through dividend payout.        Conclusion: The study contributes to the literature of CSR by explaining the relationship of specific dimensions of environmental, community, workplace, and marketplace towards dividend payout using the evidence from the emerging economy.

Author(s):  
Nguyễn Văn Anh ◽  
Thảo Thị Phương Nguyễn

In recent years, consumers are increasingly interested in corporate social responsibility activities for the community. Many companies have begun to focus on CSR activities as it can contribute to improving the company's image in customer's perception. In Vietnam, although there are also some studies about CSR, the quantity is limited and there are certain limitations. Therefore, this study aims to evaluate the relationship between CSR activities and customer loyalty through trust, customer company identify, and satisfaction. With the data being collected by survey questionnaires, the authors test the model and research hypotheses by using PLS-SEM techniques. The results show that CSR activities have a positive impact on customer loyalty through factors of trust, customer company identify, and customer satisfaction. This study helps business managers to develop effective policies and to have a new perspective on CSR activities as well as its values. In addition, the positive outlook of the customers on the business will bring many benefits, contributing to improving the brand value and reputation, enhancing competitive advantages towards sustainable development.


2020 ◽  
Vol 12 (15) ◽  
pp. 6085
Author(s):  
Xiaohui Hou ◽  
Bo Wang ◽  
Yu Gao

In this paper, we investigate the effects of stakeholder protection and public trust on the corporate social responsibility (CSR) activities of listed enterprises on the Chinese Small and Medium Enterprise (SME) Board. We find that the degree of stakeholder protection has a significantly positive impact on SME CSR activities. The public trust is not associated with SME CSR disclosure significantly; it has a significantly negative impact on the SME implementation levels of CSR activities. Furthermore, the moderating effect of public trust on the relationship between the degree of stakeholder protection and SME CSR activities is not supported by our empirical study.


2018 ◽  
Vol 11 (2) ◽  
pp. 115
Author(s):  
Moh Syadeli

This study discusses the influence of financial performance and disclosure of Corporate Social Responsibility to company value on food and beverages company that exist in BEI in period 2011-2015. Population used in this research is food and beverages company that exist in BEI. The number of registered companies amounted to 19 companies with the collection of samples using purposive sampling method that ultimately filter the sample of 7 companies with a period of 5 years The results of the research found that the F test conducted proves that ROA, ROE and CSR disclosure affect together to the value of the company. T test conducted to determine the relationship of each independent variable to the dependent variable shows that ROA and CSR disclosure does not have a significant effect on corporate value while ROE has a significant influence on corporate value. The researchers also tested the coefficient of determination which results showed that the independent variables in this study (ROA, ROE, and CSR Disclosure) in this study amounted to 43.4% and 56.6% were the effects of other variables not used in the study this.


2021 ◽  
pp. 1-29
Author(s):  
Jette Steen Knudsen ◽  
Jeremy Moon

We investigate the relationship of corporate social responsibility (CSR) (often assumed to reflect corporate voluntarism) and government (often assumed to reflect coercion). We distinguish two broad perspectives on the CSR and government relationship: the dichotomous (i.e., government and CSR are / should be independent of one another) and the related (i.e., government and CSR are / should be interconnected). Using typologies of CSR public policy and of CSR and the law, we present an integrated framework for corporate discretion for engagement with public policy for CSR. We make four related contributions. First, we explain the dichotomous and the related perspectives with reference to their various assumptions and analyses. Second, we demonstrate that public policy for CSR and corporate discretion coexist and interact. Specifically, we show, third, that public policy for CSR can inform and stimulate corporate discretion and, fourth, that corporations have discretion for CSR, particularly as to how corporations engage with such policy.


Webology ◽  
2021 ◽  
Vol 18 (Special Issue 04) ◽  
pp. 116-132
Author(s):  
Hoang Phuong Nguyen ◽  
Viet Duc Bui

The study conducted a theoretical review and review of previous studies shows that the research gap is the correlation between social responsibility factors, green marketing strategy, corporate reputation and business performance. The practical context of the tourism service industry in Vietnam is also necessary and suitable for research. The study's overall objective is to propose and test a model on the relationship between corporate social responsibility, green marketing strategy, corporate reputation, and business performance. In the case of the study, it is a travel service business in Ho Chi Minh City. The research methodology of the research is a mixed-method, performed sequentially as follows: the first qualitative research through interviews with 10 experts to consider the necessity of the research problem in Vietnam, to adjust and supplement the scales for research concepts; Quantitative research with a questionnaire survey. According to the quota principle (quota), the sample was selected with a sample size of 218 travel companies to test the proposed theoretical research model. A second qualitative study was performed to aid the interpretation of the results from quantitative data analysis. Research results have identified stakeholders in the tourism industry, including tourists, travel businesses, local authorities and local people. The relationships between research concepts are confirmed, including corporate social responsibility, green marketing strategies that have a positive impact on corporation reputation, corporate social responsibility is found to have a positive impact on green marketing strategies, corporate social responsibility, green marketing strategies, and corporate reputation all have positive effects on business results. At the same time, the enterprise's characteristics in terms of the main type of business and the size of the business are identified as having differences in the relationship between research concepts.


2016 ◽  
Vol 17 (1) ◽  
pp. 91
Author(s):  
Rizky Eriandani

<em>Corporate social responsibility practice becomes important subject in company`s activity, because it will affect the company's reputation. Besides, institutional investors likely prefer to invest in companies that have a social responsibility as it is considered to increase the legitimacy and future performance. This study aims to investigate the effect of CSR disclosure on institutional ownership. We use percentages ownership to measure institutional ownership. CSR measurement instrument used in this study adopted a previous research. The instrument comes from research Hackston and Milne, which was adjusted with Bapepam regulation in Indonesia. We also divided CSR disclosures in four sub-dimensions. The samples used in this research were 115 listed agriculture, mining, and manufacturing companies in indonesian Stock Exchange which studied during the years of 2010. Using SPSS 20, The analysis methods of this research used multiple regression analysis. Studies shows that not all dimensions of CSR disclosure effect on institutional ownership. Only product dimensions of CSR disclosures has a significant positive impact on institutional ownership. However, this paper fail to find any significant impact of another CSR dimensions. Thus, our study suggests that the dimensions of the product can affect investment decisions. In contrast, institutional investors have not focused on environment, employee relation, and community activities in investment decisions.</em>


2020 ◽  
Vol 12 (5) ◽  
pp. 2007 ◽  
Author(s):  
Andrea Vacca ◽  
Antonio Iazzi ◽  
Demetris Vrontis ◽  
Monica Fait

The paper aims to examine the moderating role of gender diversity within a corporate board on the relationship between tax aggressiveness and a firm’s corporate social responsibility (CSR) approach. This analysis was conducted using a set of indicators of financial statements of 168 Italian listed firms between 2011 and 2018. In addition, the sustainability reports of the same companies were observed. To perform the analysis a logit regression model is used. This paper shows different empirical results. First, this study notes that there is not a direct relationship between tax aggressiveness and CSR reporting. Second, gender diversity in a board of directors increases the orientation of companies to CSR disclosure, but does not have an impact on the relationship between tax aggressiveness and CSR disclosure. Instead, CEO gender has a positive influence on the relationship between corporate tax planning and CSR reporting in accordance with Global Reporting Initiative (GRI) standards. This study emphasizes the key role of gender diversity in the growth of the CSR approach and the reputation of companies. Therefore, governments and policymakers of major countries should promote gender diversity in corporate decision-making bodies, which contributes to achieving the Sustainable Development Goals (SDGs).


2018 ◽  
Vol 43 (2) ◽  
pp. 79-88 ◽  
Author(s):  
Arief Rijanto

Both corporate social responsibility (CSR) activities and donation-based crowdfunding have potential synergistic effects to generate funds, but fundraisers face competition and challenges to achieve their donation target. For instance, on the one hand, CSR initiatives may create the opportunity to generate funds through crowdfunding. On the other hand, crowdfunding can be used to micro fund many social activities in line with a company’s CSR goals. This study explores the relationship among successful donation fundraisers in crowdfunding activities that have the potential to become CSR activities. Specifically, the study examines the relationship of the value and size of funds raised in the beginning (first day) of fundraising effort with its target funds by the fundraiser and type of activities. Data from crowdfunding activities in Southeast Asian countries are used to examine the funds raised through donations by comparing trends, cultures, and characteristics of fundraisers using donation-based crowdfunding. The results of the study show that the value of funds raised in the beginning (first day) has a significant positive correlation with small targeted funds. Art, culture, and product-based activities of crowdfunding show the potential to have synergistic effects with CSR activities, and they tend to be correlated with successful project financing in Southeast Asia.


2019 ◽  
Vol 7 (5) ◽  
pp. 1338-1347
Author(s):  
Gemi Ruwanti ◽  
Grahita Chandrarin ◽  
Prihat Assih

Purpose: The purpose of this paper is to examine the role of corporate governance in the relationship of Corporate Social Responsibility (CSR) and firm size to earnings management of manufacturing firms in Indonesia. Methodology: The study draws on data from 66 firms listed in Indonesian Stock Exchange from 2014 to 2017, using a multiple regression model. The present study examines the influence of CSR on earnings management, and the impact of corporate governance on the relationship between CSR and firm size with earnings management. Main Findings: The finding showed that the effect of CSR on earnings management was significant and positive. The study also finds a statistically significant negative relationship between firm size and earnings management. The evidence also shows the role of corporate governance in the relationship of CSR and firm size to earnings management is significant and negative, it means that when the firm has good corporate governance, the firms that allocate CSR funds are relatively large, then it will tend not to practice earnings management, likewise large firms with good corporate governance will tend not to do earnings management. Research limitations/implications: The present study does not include all possible other variables that influence earnings management. Further research might increase the scope of research objects by extending the study period and need to pay attention to the firm's macro factors or economic risk factors outside of financial performance so as to provide a more comprehensive picture of the results of the study. Originality/value: The study focuses on the role of corporate governance issues such as the independence and activity of the boards and their influence on earnings management. The subject analyses the possible impact of CSR and firms size-related earnings management that has received much attention from academic research, which has largely focused on studying the publications of corporate governance in Indonesia context and can be contributes thoughts about the importance of corporate social responsibility activities that are reported as a basis for consideration incorporate policy-making to further enhance corporate awareness in the social environment, as well as the importance of corporate governance to minimize earnings management practices.


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