Investigating the relationship between CSR and financial performance based on corporate reputation: evidence from Vietnamese enterprises

2021 ◽  
Vol 24 (2) ◽  
pp. 107
Author(s):  
Khoa Truong An Nguyen ◽  
Khuong Ngoc Mai ◽  
Minh Man Cao
Keyword(s):  
Financial Performance ◽  
Corporate Reputation ◽  
The Relationship

scholarly journals Corporate Reputation and Subsequent Financial Performance: A Theoretical Explanation of the Mediating Role of Trust

2019 ◽  
Vol 14 (11) ◽  
pp. 209
Author(s):  
M. M. D. De S. Gunawardena ◽  
R. Senathiraja ◽  
S. Buvanendra
Keyword(s):  
Financial Performance ◽  
Stakeholder Theory ◽  
Corporate Reputation ◽  
Organizational Trust ◽  
Theoretical Explanation ◽  
Scarce Resources ◽  
Mediating Role ◽  
Proposed Model ◽  
The Relationship

Amidst empirical evidence that claim corporate reputation affects subsequent financial performance of firms, the literature does not provide a comprehensive explanation for this relationship. The aim of this article therefore is to provide a theoretical explanation on how corporate reputation affects the subsequent financial performance. The available literature supports that corporate reputation signals trustworthiness of firms, based on which stakeholders make decisions such as to trust a firm and allocate valuable, scarce resources. The resources so allocated would help a firm to achieve its objectives, including targeted financial performance in subsequent years. In order to explain the role of trust in the relationship between corporate reputation and subsequent financial performance, the researchers combine two extensively referred models from the reputation and trust literature, the model of reputation-financial performance dynamics and the proposed model of organizational trust. The signaling theory and the stakeholder theory provide the theoretical explanation for the new model proposed.

scholarly journals Corporate Reputation And Social Responsibility: An Analysis Of Large Companies In Croatia

2011 ◽  
Vol 10 (8) ◽  
pp. 85 ◽  
Author(s):  
Neda Vitezic
Keyword(s):  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Reputation ◽  
Positive Relationship ◽  
Social Performance ◽  
Theoretical Background ◽  
Socially Responsible ◽  
The Relationship ◽  
Over Time

This paper aims to explore the relationship between corporate reputation and social responsibility (CSR) in selected large Croatian companies. The research is based on the theoretical framework that supports a thesis of their positive relationship. CSR is measured through economic, environmental, and social aspects and is primarily based on testing the relationship between CSR and financial performance to determine whether the relationship is positive, neutral or negative. Many researchers have concluded that it is generally positive, depending on which measures of financial performance are used. At the same time, corporate reputation is considered as a key mediator in the relationship between a firm's CSR and financial performance. In this concept of CSR, reputation is a global perception of a group of stakeholders, its assessment of the credibility of the organization's projection. Company reputations may vary from one stakeholder to another depending of their expectations, which are dynamic and likely to change over time. It is within this context of company relationships with its stakeholders that determines the level of reputation a company will develop over time. Thus corporate reputation will be directly and significantly related to CSR. Based on this hypothesis, they are a few objectives of this research. The first is to analyze the significance of the proposed corporate attributes according to company and customer perspective. For that purpose, seven practical and theoretical background attributes are selected and ranked - quality of products and services, corporate vision and strategy, quality of management leadership, labor force, financial performance, social and environmental responsibility, and corporate governance. Second is to propose indicators for each reputation attribute and rank them according to their significance collected by surveying large companies executives. Third is to analyze the correlation between socially responsible companies and their reputation. The research results show that one of the corporate attributes CSR - is ranked very low from the point of view of company executives and employees, but very high from the perspective of consumers. Among the indicators which represent socially responsible performance, financial performance is ranked first, followed by ecological and social performance. A positive relationship between financial performance and corporate reputation has been statistically confirmed; i.e., socially responsible Croatian large companies have better financial results measured by ROA, ROE, margin profit and EPS.

The impact of multinational corporations’ socially responsible supplier development practices on their corporate reputation and financial performance

2019 ◽  
Vol 50 (1) ◽  
pp. 3-25 ◽  
Author(s):  
Prema Latha Subramaniam ◽  
Mohammad Iranmanesh ◽  
Kavigtha Mohan Kumar ◽  
Behzad Foroughi
Keyword(s):  
Financial Performance ◽  
Multinational Corporations ◽  
Corporate Reputation ◽  
Social Performance ◽  
Equation Modeling ◽  
Supplier Development ◽  
Socially Responsible ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose In the literature on sustainable supply chain management, the social pillar of sustainability has received relatively little attention, especially in developing countries. The purpose of this paper is to test empirically the impacts of supplier development practices on suppliers’ social performance. Furthermore, the impact of suppliers’ social performance on MNCs’ social performance was investigated and corporate reputation was proposed as a potential explanation for the relationship between MNCs’ social and financial performance. Design/methodology/approach Data were obtained from a survey of 141 multinational companies (MNCs) in Malaysia which were listed in the Federation of Malaysia Manufacturers’ directory 2017. Data were analyzed using partial least squares structural equation modeling. Findings The results show that among the four proposed practices, supplier development and supplier collaboration have significant effects on suppliers’ social performance and consequently on the multi-national companies’ social performance. According to these results, multi-national companies’ corporate reputation mediates the relationship between their social and financial performance. Practical implications These results will be useful in helping managers of MNCs to realize that simply monitoring suppliers and giving them incentives are not effective ways of enhancing social responsibility among suppliers; instead, supplier development and collaboration such as technical support and training are needed. Originality/value The results extend the literature on socially responsible supplier development practices by testing empirically the impacts of four popular practices in the literature and showing that supplier monitoring and incentives have no effect.

Disentangling the reputation – performance paradox: Indian evidence

2020 ◽  
Vol 12 (2) ◽  
pp. 153-167
Author(s):  
Amanpreet Kaur ◽  
Balwinder Singh
Keyword(s):  
Financial Performance ◽  
Corporate Reputation ◽  
Emerging Economy ◽  
Vicious Circle ◽  
Annual Reports ◽  
Content Type ◽  
Corporate Managers ◽  
Good Reputation ◽  
Building Activities ◽  
The Relationship

Purpose The purpose of this study is to examine the existence of bi-directional relation between corporate reputation and financial performance in developing nation like India. Design/methodology/approach The study conducts panel regression analysis on data collected from annual reports of Indian companies constituting BSE 500 index over a period of 10 years (1 April, 2002 to 31 March, 2012). Findings The results of the study point towards the existence of strong positive bi-directional liaison between reputation and performance in India, thereby confirming the presence of “vicious circle” in context of emerging economy like India. The results are in line with the findings of Roberts and Dowling (2002) and Eberl and Schwaiger (2005), who asserted existence of reputational “vicious circle” in developed nations. Research limitations/implications The current study measures the performance of companies through accounting-based measures only. However, incorporating market-based measures could have provided better insights into the relationship between corporate reputation and financial performance. The period of study pertains to the pre-mandatory regime, wherein changes brought about by the enactment of companies act, 2013 is out of the scope of the present research. Practical implications It is argued that in actual practice managers should realise the ingenuity of intangible resources and incorporate them into their strategical plans. It is high time that corporate managers of developing nations give impetus to reputation building activities and uphold a good reputation to improve their financial outcomes. Thus, where good financial performance seems indispensable to build a good reputation, at the same time having the resource (good reputation) is not sufficient, its nurturing, management and effective use is all the more crucial if it is to improve financial performance. Originality/value There exists hardly any study comprehensively examining the relationship between corporate reputation and financial performance in the Indian context. This is the first known study to empirically test the lag relation between corporate reputation and financial performance in the Indian market. The study is unique as it follows a different approach in measuring corporate reputation. It is the first longitudinal study to analyse the bi-directional reputation-performance liaison in an emerging economy like India.

Investment returns from reputation investing: do good firms provide good returns?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kristine L. Beck ◽  
James Chong ◽  
Bruce D. Niendorf
Keyword(s):  
Financial Performance ◽  
Corporate Reputation ◽  
Firm Value ◽  
Design Methodology ◽  
Information Ratio ◽  
Return On Assets ◽  
Content Type ◽  
Investment Returns ◽  
The Relationship ◽  
Measures Of Performance

PurposeThis study aims to examine whether a good corporate reputation leads to superior investment returns. Theory and empirics provide support for the idea that a good corporate reputation improves firm value, but much of the previous research fails to consider the risk of the companies they study and relies only on accounting measures of performance such as return on assets. A complete picture of the relationship between corporate reputation and shareholder value should include risk-adjusted returns and correlation with benchmark returns.Design/methodology/approachThe Harris Poll Reputation Quotient (RQ), based on the reputations of the 100 most visible companies, suggests that companies with a “solid reputation” are more likely to be attractive investments. The authors construct portfolios using deciles and the RQ categories, rebalancing annually as RQ rankings are updated. Returns are adjusted for risk using Jensen's alpha, the information ratio, the Sharpe ratio, Modigliani and Modigliani's M2 measure, and Muralidhar's M3 measure.FindingsThe results indicate that choosing a portfolio based on the highest RQ-ranked firms does outperform the market on a risk-adjusted basis, and that the relationship between rankings and time-weighted returns is roughly monotonic. The authors also observe that corporate reputation is persistent, and that the best and worst most-visible firms are more likely to be privately held.Originality/valueThis research adds to the literature by including both market-based return measures and risk in the examination of the relationship between corporate reputation and financial performance.

scholarly journals The Effect of Good Corporate Governance and Corporate Social Responsibility Disclosure on Financial Performance with the Company’s Reputation as Moderating

2020 ◽  
Vol 5 (8) ◽  
pp. 205-212
Author(s):  
Hermawati . ◽  
Mediaty . ◽  
Yohanis .
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Reputation ◽  
Corporate Social Responsibility Disclosure ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

This study aims to analyze the effect of good corporate governance and corporate social responsibility disclosure on financial performance with the company's reputation as a moderating variable. The population of this study were 20 state-owned companies listed on the BEI. This study uses purposive sampling technique and produces 16 companies with observation years, namely 2014-2019. The analysis technique used to analyze data is Moderated Regression Analysis (MRA). The results showed that good corporate governance does not affect financial performance, disclosure of corporate social responsibility affects financial performance, corporate reputation does not moderate the relationship of good corporate governance to financial performance and corporate reputation does not moderate the relationship of corporate social responsibility disclosure on financial performance.

IMPLEMENTASI KINERJA KEUANGAN TERHADAP NILAI SPIRITUALITAS PRIBADI

2012 ◽  
Vol 16 (3) ◽  
pp. 332
Author(s):  
Whedy Prasetyo
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Annual Report ◽  
Main Concern ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
The Relationship ◽  
Personal Spirituality

Development of financial performance in the application of Good Corporate Governance and Corporate Social Responsibility which affects the values of honesty private individuals, in order to be able to run the accountability, value for money, fairness in financial management, transparency, control, and free of conflicts of interest (independence). The main concern in this study is focused on achieving value personal spirituality through the financial performance and capabilities of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) in moderating the relationship with the financial performance of value personal spirituality. This study is a descriptive verifikatif. The unit of analysis in this study was 15 companies in Indonesia with a policy that has been applied through the concept since January of 2008 until now, with the support of the annual report of the company, the company's financial statements, company reports to the disclosure of Good Corporate Governance and Corporate Social Responsibility in the annual report. Overall reports published successively during the years 2008-2011. The results of this study indicate financial performance affects the value of personal spirituality, and for variable GCG obtained results that could moderate the relationship of financial performance to the value of personal spirituality. But for the disclosure of CSR variables obtained results can’t moderate the relationship with the financial performance of personal spirituality.

Using Internal Control As A Moderator Relationship Between Factor Of Financial Engineering AND Financial Performance In IRAQI Banks

2019 ◽  
Vol 118 (10) ◽  
pp. 197-215
Author(s):  
Iman Muayad Merie Al_Khero ◽  
Sharul Effendy Bin Janudin ◽  
Azam Abdelhakeem Khalid
Keyword(s):  
Financial Performance ◽  
Internal Control ◽  
Financial Engineering ◽  
The Relationship

This paper aims to examines the relationship between the factors of financial engineering and financial engineering by using internal control (IC) as a moderator in Iraq banks

Sign in / Sign up

Export Citation Format

Share Document