scholarly journals DOES CORPORATE SOCIAL RESPONSIBILITY REDUCE INFORMATION ASYMMETRY?: EMPIRICAL EVIDENCE FROM PAKISTAN

2021 ◽  
Vol 9 (3) ◽  
pp. 934-950
Author(s):  
Naeem Khan ◽  
Qaisar Ali Malik ◽  
Ahsen Saghir ◽  
Muhammad Aslam ◽  
Muhammad Husnain
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Financial Sector ◽  
Equity Market ◽  
Annual Data ◽  
Asymmetry Of Information ◽  
Corporate Social ◽  
Corporate Level ◽  
Level Government

Purpose: The work empirically investigates the effect of corporate social responsibility (CSR) on information asymmetry (IA). Methodology: For analysis, the study uses annual data ranging from 2007 to 2017, collected from the published reports of companies registered at the Pakistani equity market comprising the non-financial sector. An unbalanced panel of 257 companies with 2383 observations is analyzed using the generalized methods of moment (GMM) technique. Main findings: In line with stakeholder's theory, results disclose a negative association between the variable of CSR and IA. It suggests that investing in CSR-related activities will reduce the asymmetry of information among managers and shareholders. Application of the study: Findings of the study uncover the benefits of CSR in relation to IA that must be considered while formulating any strategy both at the governmental and corporate level. Government should facilitate corporations that engage in CSR work while firms must include CSR in their policy-making as it can significantly reduce information asymmetry. Novelty/ originality of the study: This study provides a deep analysis in the form of behavioural association and the effect of CSR practices on information asymmetry in the context of the Pakistani non-financial sector. The study endorses the concept of CSR practices for the reduction of information asymmetry in Pakistani firms.

Where, When, and Who: Corporate Social Responsibility and Brand Value—A Global Panel Study

2021 ◽  
pp. 000765032110193
Author(s):  
Shawn Pope ◽  
Jimi Kim
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Fixed Effects ◽  
Panel Study ◽  
Brand Value ◽  
Industrial Sectors ◽  
Identity Match ◽  
Corporate Social ◽  
The Relationship ◽  
Corporate Level

According to surveys of companies, branding is one of the main objectives of their corporate social responsibility (CSR). With advantageous data from Brand Finance, we address three contextual factors that may condition the relationship between CSR and brand value. First, we hypothesize that the relationship between CSR and brand value obtains across major world regions and industrial sectors (“the convergence thesis”). Second, we hypothesize that the relationship has weakened with time, as companies have had increasing difficulty using CSR to differentiate their brands in a sea of CSR-espousing competitors (“the crowding out thesis”). Third, we hypothesize that the relationship between CSR and brand value is weaker where a brand’s identity is different from that of its corporate owner, which may make it difficult for observers to readily link (corporate-level) CSR with its potential (lower level) brand beneficiaries (“the identity-match thesis”). We support these hypotheses with random-effects, fixed-effects, and instrumental-variable regressions before ending with contributions, limitations, implications, and potential next steps.

scholarly journals Can Environmental Corporate Social Responsibility Reduce Firms’ Idiosyncratic Risk? Evidence From China

2020 ◽  
Vol 8 ◽  
Author(s):  
Xiaoran Kong ◽  
Yuying Pan ◽  
Huaping Sun ◽  
Farhad Taghizadeh-Hesary
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Internal Control ◽  
Idiosyncratic Risk ◽  
Listed Firms ◽  
External Monitoring ◽  
Corporate Social ◽  
The Impact ◽  
A Share

Environmental corporate social responsibility (ECSR) can be a strategy to increase the transparency of investment information effectively to alleviate information asymmetry. The purpose of this article is to examine the impact of ECSR on firms’ idiosyncratic risk. Using the data of A-share listed firms in China and data of Rankins CSR Ratings by developing econometrics models, this study documents that ECSR can significantly reduce the firms’ idiosyncratic risk. This result perpetuates after a series of robustness checks. Besides, the results of conditional analyses reveal that the effect of ECSR is more pronounced for state-owned firms and firms with weaker external monitoring mechanisms and low internal control. Moreover, further evidence suggests that firms with high ECSR show a greater tendency to disclose more information, which reduces the information asymmetry and offers linkages from ESCR to firms’ idiosyncratic risk.

scholarly journals Using CSR to mitigate information asymmetry in the banking sector

2015 ◽  
Vol 10 (4) ◽  
pp. 316-329 ◽  
Author(s):  
Andreea Semenescu ◽  
Cătălin Valeriu Curmei
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Empirical Study ◽  
Information Asymmetry ◽  
Banking Sector ◽  
Limited Dependent Variable ◽  
Financial Soundness ◽  
Banking Institution ◽  
Corporate Social

Abstract The paper examines the power of corporate social responsibility to reduce information asymmetry and to act as a marketing instrument in the banking sector. Trust is the most important asset of a bank. Therefore, banks are motivated to use the most effective instruments to diminish information asymmetry with their stakeholders. The fact that cash disbursements in CSR actions are not directed towards shareholders makes them more valuable signals to other stakeholders regarding the financial soundness of the bank. The empirical study conducted based on limited dependent variable models supports the effectiveness of the CSR as marketing instrument in banking. It reveals the circumstances associated to a higher probability of an active CSR policy conducted by a banking institution. The results support the hypothesis that in the banking sector CSR is perceived as an instrument which helps stakeholders reduce information asymmetry. As marketing instrument, CSR contributes to increasing the tangibility of the banking products, decreasing their perceived variability and thus making them more attractive for the clients and allowing for differentiation between competitors.

scholarly journals STRENGTHENING ABG COOPERATION IN WOMEN EMPOWERMENT THROUGH CORPORATE SOCIAL RESPONSIBILITY (CSR)

2018 ◽  
Vol 1 (1) ◽  
pp. 46
Author(s):  
Riany Nurwulan ◽  
Ine Mariane
Keyword(s):  
Corporate Social Responsibility ◽  
Local Government ◽  
Social Responsibility ◽  
Women Empowerment ◽  
Field Observations ◽  
Qualitative Descriptive ◽  
Corporate Social ◽  
Depth Interviews ◽  
Descriptive Method ◽  
Level Government

This study aims to analyze the implementation of Corporate Social Responsibility CSR) in the perspective of academic, business, and government (government) cooperation by PT. Telkom, Indonesia Tbk in District Kiaracondong Bandung. The research used qualitative descriptive method. The informants were chosen purposively which included representatives of companies, recipient communities, and local government apparatus. Data collection techniques were conducted through a series of in-depth interviews, field observations and documentary studies. The study found that CSR implementation through the empowerment of women in the process involves elements of academia and local government, so that the implementation shows the success and impact on the benefits felt by the community as reflected in the empowerment index .. Based on the results of the study recommended that the company establish cooperation also with the district level government, 

scholarly journals A study on Taiwanese corporate social responsibility and ownership structures

2012 ◽  
Vol 9 (3) ◽  
pp. 111-122 ◽  
Author(s):  
Shihwei Wu ◽  
Fengyi Lin ◽  
Chiaming Wu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Ownership Structure ◽  
Family Firms ◽  
Earnings Quality ◽  
Ownership Structures ◽  
Professional Managers ◽  
Corporate Social ◽  
The Relationship

This study develops several models to examine the relationship between the corporate social responsibility (CSR) and the ownership structure of Taiwanese firms. Our results suggest that firms which are controlled by professional managers, government-owned, or collectively-owned would like to undertake serious efforts to integrate the CSR into various aspects of their companies. Due to Asia firm’s culture, family firms might be more reluctant to put efforts on CSR activities. We also report that there is a positive relationship between (a) the CSR and financial performance and (b) the CSR and earnings quality. This study suggests that the ownership structures are found to have effects on the CSR and the CSR could also decrease the information asymmetry between managers and investors.

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