Corporate Social Responsibility Activities, Risk Taking and Firm Value - Focusing on Corporate Governance -

In this paper, we investigate the effect of Corporate Social Responsibility (CSR) on risk taking in Indonesia. We hand collect CSR and other corporate governance data from 2016-2017 for publicly listed firms on the Indonesian Stock Exchange (IDX). The results, based on 820 firm-year observations, suggest that CSR activity is negatively related to corporate’s risk. This means the presence of CSR activity is positively perceived by stakeholders. Therefore, it reduces operating and market risks of the company. Also, we test for endogeneity and the main findings remain similar.

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Corporate Social Responsibility Proposals and Firm Valuation

International Journal of Financial Studies ◽

10.3390/ijfs9030045 ◽

2021 ◽

Vol 9 (3) ◽

pp. 45

Author(s):

Pyung Kun Chu

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Firm Value ◽

Causal Effect ◽

Firm Valuation ◽

Public Companies ◽

Shareholder Proposals ◽

The Board Of Directors ◽

Corporate Social

Corporate social responsibility (CSR) is a topic which has recently been attracting an increasing amount of attention with respect to corporate operations, and shareholder proposals on CSR are also one of the main types of proposals at firms’ annual shareholder meetings. However, even though the frequency of CSR proposals at annual meetings is comparable to other types of shareholder proposals, the approval rate of CSR proposals is significantly lower than that of other types of proposals, meaning that most CSR proposals are not recommended by the annual meeting to the board of directors for further approval. Motivated by this stylized fact, this study investigates the value of the submission of CSR shareholder proposals. Using a regression discontinuity design with shareholder proposal data of US public companies between 2006 and 2019, this study examines the importance of shareholders’ interest in CSR for firm valuation. Interestingly, while the CSR proposals themselves are typically not approved, the submission of CSR proposals by shareholders at annual meetings matters for the value impact of other types of shareholder proposals. More specifically, the causal effect of approving a corporate governance proposal on shareholder value is significantly positive only if the corporate governance proposal is voted together with a CSR proposal at the same meeting, i.e., the presence of CSR proposals is important for firm value through its interrelations with corporate governance proposals. This shows that the submission of CSR shareholder proposals has significant value implications, even if the CSR proposals themselves are not approved at annual meetings.

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Corporate governance and corporate social responsibility interface: a case study of private equity

Corporate Governance ◽

10.1108/cg-11-2019-0348 ◽

2020 ◽

Vol 20 (4) ◽

pp. 703-717 ◽

Cited By ~ 1

Author(s):

Virgo Süsi ◽

Krista Jaakson

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Firm Value ◽

Private Equity ◽

Resource Dependence Theory ◽

Medium Size ◽

Content Type ◽

Corporate Social

Purpose This paper aims to explore why private equity (PE) cares about corporate social responsibility (CSR) of its investees given their relatively short investment time-horizon and how it designs corporate governance (CG) bundle to achieve both financial and CSR goals of the private firms it invests in. Design/methodology/approach Case study design is applied to get deeper insights on the why and how questions posed. Analysis is based on triangulation of secondary data and in-depth interviews with both PE and their investee firms. Findings The authors find that long-term sustainability supported by CSR increases firm value. They also outline specific CG bundle that the PE uses to achieve both its financial and CSR goals. CG mechanisms appeared to reflect agency theory, but even more resource dependence theory. Practical implications The outlined CG bundle could be used as a template for all types of private firm owners to improve both financial and CSR performance of the firm. Originality/value The paper adds to fragmented area of CG and CSR interface. The authors specifically focus on several under-researched contexts of this interface: private small and medium size firms (SMEs), emerging markets and PE investors.

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Corporate Governance, Corporate Social Responsibility and Firm Value: An Analysis from the Agency Problem and Value Enhancement Perspectives

10.16980/jitc.13.5.201710.407 ◽

2017 ◽

Vol 13 (5) ◽

pp. 407-425

Author(s):

Yun-Sik Kang ◽

◽

Kyeong-Woo Wee ◽

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Firm Value ◽

Agency Problem ◽

Corporate Social

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Corporate Social Responsibility, Corporate Governance, and Managerial Risk-Taking

SSRN Electronic Journal ◽

10.2139/ssrn.2438177 ◽

2014 ◽

Cited By ~ 3

Author(s):

Mohamed Ayadi ◽

Martin I. Kusy ◽

Minyoung Pyo ◽

Samir Trabelsi

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Risk Taking ◽

Managerial Risk ◽

Corporate Social

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The roles of cost of capital, corporate governance, and corporate social responsibility in improving firm value: evidence from Indonesia

Investment Management and Financial Innovations ◽

10.21511/imfi.16(4).2019.03 ◽

2019 ◽

Vol 16 (4) ◽

pp. 28-36 ◽

Cited By ~ 1

Author(s):

Kartika Hendra Titisari ◽

M. Moeljadi ◽

Kusuma Ratnawati ◽

Nur Khusniyah Indrawati

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Firm Value ◽

Cost Of Capital ◽

Corporate Sustainability ◽

Corporate Image ◽

Negative Effect ◽

Corporate Social ◽

The Impact

Corporate governance (CG) and corporate social responsibility (CSR) are important subjects for corporate sustainability that affect firm value (FV). At the same time research results in several countries provide diverse empirical evidence. This study analyzes the impact of corporate governance (CG) and corporate social responsibility (CSR) on firm value (FV) through the cost of capital (CoC) in public companies of Indonesia. The research sample includes 27 companies that publish sustainability reports and corporate governance reports, with an observation period from 2010 till 2016. This study presents the analysis of three firm value proxies (Tobin’s q (TQ), Price Earnings Ratio (PER), and Price to Book Value (PBV)). Results of hypotheses testing using Partial Least Squares (PLS) show that CG and CSR have both direct and indirect effects on FV. These findings are consistent for all three firm value assessments. According to direct testing, CG has a negative effect on FV, while CSR has a positive effect. The CoC acts as a mediating variable in this relationship. The CG and CSR have a negative effect on CoC, while CoC has a negative effect on FV. The findings show that CG and CSR can improve the company performance and corporate image internally and externally, thereby increasing the investors` confidence, and companies have the opportunity to obtain inexpensive funding sources that can reduce CoC. A decrease in CoC can increase profitability and have an impact on FV increasing.

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Pengaruh Mekanisme Tata Kelola Perusahaan yang Baik, Pengungkapan Tanggung Jawab Sosial Perusahaan, dan Pengembalian atas Penggunaan Asset Terhadap Nilai Perusahaan

Jurnal Riset Mahasiswa Akuntansi ◽

10.21067/jrma.v6i1.4214 ◽

2020 ◽

Vol 6 (1) ◽

Author(s):

Anggi Adinda Setiarini ◽

Sulistyo Sulistyo ◽

Rita Indah Mustikowati

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Firm Value ◽

Stock Exchange ◽

Descriptive Analysis ◽

Return On Assets ◽

Corporate Social Responsibility Disclosure ◽

Good Corporate Governance ◽

Corporate Social

This study aims to determine the effect of good corporate governance mechanisms, corporate social responsibility disclosure, and return on assets to firm value. The population used in this study is a publicly listed banking company listed on the Indonesia Stock Exchange in the 2014-2015 period and the sample determination method used was purposive judgment sampling. Samples obtained were 42 companies. Data analysis techniques used are descriptive analysis, classic assumption test, multiple linear regression test, and hypothesis testing. This study found that simultaneously the mechanism of good corporate governance, corporate social responsibility disclosure, and return on assets affect the value of the company. Partially, this study found that the mechanism of good corporate governance that was proxied by the board of directors (DD), board of commissioners (DK), managerial ownership (KM), return on assets (ROA) influenced the company value, while institutional ownership (IC) and corporate social responsibility (CSR) does not affect the company's value

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The Mediating effect of Corporate Social Responsibility and Dividend Policy on the Effect of Corporate Governance Mechanism on Firm Value among Publicly Listed Companies in the Philippines

International Journal of Engineering and Advanced Technology - Regular Issue ◽

10.35940/ijeat.f1121.0886s19 ◽

2019 ◽

Vol 8 (6S) ◽

pp. 602-605

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Firm Value ◽

The Philippines ◽

Mediating Effect ◽

Governance Mechanism ◽

Governance Mechanisms ◽

Corporate Governance Mechanism ◽

Corporate Social

— Corporate social obligation has become an vital part of commercial company exercise during the last decade or so. In fact, many businesses dedicate a phase of their annual reports and company internet web sites to CSR activities, illustrating the importance they attach to such sports. On the opposite hand, Good company governance exercise has a number of observable outcomes on economic results of the company. Corporate governance recommendations are strongly associated with income quality or the quantity to which the firm’s disclosed economic basic performance reflects its right performance. This have a look at investigates in the main the mediating effect of Corporate Social Responsibility and Dividend Policy on the impact of corporate governance mechanism on firm value amongst publicly listed organizations inside the Philippines. It examined forty seven publicly indexed businesses inside the Philippines for a four-yr period from 2013 to 2016. A structural equation modeling (SEM) approach changed into used for the evaluation. Results show that Corporate Social Responsibility does not act as a mediating variable with regards to company governance mechanisms to firm rate. It manner that CSR does now not act as a variable so one can give a boost to corporation governance mechanisms that during developing the charge of the commercial enterprise corporation. Also, dividend coverage does no longer act as mediating variable at the effect of enterprise governance mechanisms on company value. Finally, the end result confirmed that there is a terrible but large effect of dividend price on business enterprise value.

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