scholarly journals Sustainability performance: It’s impact on risk and value of the firm

2016 ◽  
Vol 14 (1) ◽  
pp. 278-286 ◽  
Author(s):  
Untung Haryono ◽  
Rusdiah Iskandar ◽  
Ardi Paminto ◽  
Yana Ulfah
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Regulatory Compliance ◽  
Equation Modeling ◽  
Short Term ◽  
Good Corporate Governance ◽  
Corporate Social

This study aims to analyze the relationship between the sustainability performances (corporate social performance, good corporate governance, and financial performance) and the risk as well as the value of the company. Employing the data from publicly listed mining firms in Indonesia and structural equation modeling to examine the hypotheses, we find that the corporate social performance improvement can be served to increase the corporate financial performance. Implementation of good corporate governance may contribute to improve financial performance and reduce the risk of the company. In short term, investors will appreciate the social and environmental responsibility undertaken by the company only if its implementation can contribute to the improvement of the company’s financial performance. In long term, social and environmental performance improvements made by the company will be able to increase the value of the company directly. Investors consider companies that apply the principles of good corporate governance not just as regulatory compliance, so that it can provide benefits for improving corporate performance and value of the company, in the short term and long term.

Corporate governance, corporate social responsibility and corporate performance

2010 ◽  
Vol 16 (5) ◽  
pp. 641-655 ◽  
Author(s):  
Chi-Jui Huang
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Positive Impact ◽  
Social Performance ◽  
Outside Directors ◽  
Asian Economy ◽  
Corporate Social

AbstractPrevious research has analyzed and debated corporate governance (CG) and corporate social responsibility (CSR) independently. This paper aims to empirically explore the interrelationship between CG, CSR, financial performance (FP) and Corporate Social Performance (CSP) using a sample of 297 electronics companies operating in Taiwan, a newly industrialized Asian economy. The results show that a CG model which includes independent outside directors and which has specific ownership characteristics has a significantly positive impact on both FP and CSP, whereas FP itself does not influence CSP. The presence of independent outside directors in the firm has the greatest impact on the social performance of the firm's worker, customer, supplier, community and society dimensions. Government shareholders enhance a firm's social performance extraordinarily because government shareholders will be more likely to request that companies fulfill their social responsibilities. Only government shareholders positively and significantly relate to a firm's environmental performance. Furthermore, foreign institutional stockholders help to increase worker and supplier performance by paying more attention to employee policies and supply chain relationships. Finally, independent outside directors, foreign institutional stockholders and domestic financial institutional stockholders are shown to improve financial performance.

scholarly journals Does corporate social performance lead to better financial performance? Evidence from Turkey

Green Finance ◽  
2021 ◽  
Vol 3 (4) ◽  
pp. 463-481
Author(s):  
Hakan KURT ◽  
◽  
Xuhui Peng ◽  
Keyword(s):  
Financial Performance ◽  
Corporate Strategy ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Positive Role ◽  
Stakeholder Perspective ◽  
Short And Long Term ◽  
Corporate Social ◽  
The Impact

<abstract> <p>In the past two decades, research on the relationship between corporate social performance (CSP) and corporate financial performance (CFP) has seen considerable growth; however, evidence from Turkey remains scarce, and the results are not uniform. To address this lack, this study investigates the impact of CSP on CFP from the perspective of stakeholder theory. Following the investigation of 47 publicly listed companies from the BIST Corporate Governance Index (XKURY) in the period 2014–2018. The results demonstrate that CSP positively affects CFP in both the short and long term. This study addresses the lack of Turkish experience, and the results indicate that CSP is an intangible resource in corporate strategy that can improve the competitive power of Turkish enterprises. Furthermore, the study emphasizes the positive role of CSP in short-term and long-term CFP in the Turkish context from the stakeholder perspective. The results have implications for Turkish policymakers regarding the rational use of corporate social responsibility (CSR) to promote economic development and insights for Turkish enterprises in terms of gaining stakeholders' trust and improving investors' valuation through the strategic use of CSR to achieve long-term, sustainable development of enterprise competitiveness and finance.</p> </abstract>

scholarly journals Corporate Social Performance and Use of Debt: an Examination of Australian Companies

2021 ◽  
Vol 15 (4) ◽  
pp. 4-27
Author(s):  
Subba Reddy Yarram ◽  
Josie Fisher
Keyword(s):  
Conflict Resolution ◽  
Stakeholder Theory ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Negative Association ◽  
Short Term ◽  
Listed Firms ◽  
Australian Context ◽  
Corporate Social

This study examines whether the corporate social performance (CSP) activities of firms influence the structure of debt in the Australian context. Long-term debt is often associated with higher monitoring by lenders, which suggests that firms may benefit from using long-term debt strategically. Short-term debt arises from regular business dealings with a number of primary stakeholders such as customers, suppliers, employees and lenders. We propose in this study that businesses that are committed to improving CSP outcomes may reduce use of short-term debt contributing to building sustainable long-term relationships with the primary stakeholders. We therefore investigate whether firms that prioritise CSP favour long-term debt or short-term debt. Using a sample of Australian Securities Exchange (ASX) listed firms, this study finds that the level of CSP is not associated with long-term debt use, but there is a significant negative association between CSP and the short-term debt usage. This finding suggests that firms with stakeholder-friendly policies reduce their use of short-term debt rather than long-term debt. The reduced use of short-term debt helps resolve possible conflicts between the primary stakeholders and a firm, thus this study presents evidence supporting stakeholder theory and conflict-resolution hypothesis.

Employees and Corporate Social Performance

2009 ◽  
pp. 327-333
Author(s):  
Punit Arora
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Employment Relations ◽  
Stakeholder Relationships ◽  
Stakeholder Influence ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Over 30 years of research on the relationship between corporate social performance (CSP) and financial performance (FP) has yielded no conclusive results. Researchers have tried to legitimize (or discredit) social performance on the basis of its surmised impact on corporate profitability. However, the empirical evidence on the topic has been as divisive as the theoretical propositioning. By reviewing the theory and evidence on the topic, this article puts forth four intertwined propositions that could be confounding these results: failure to consider the impact of corporate governance, lumping together all sorts of expenditures under the rubric of social performance, failure to consider the stakeholder relationships, and above all, not accounting for the past reputation and stakeholder influence capacity of the firm. In particular, we contend that it is the employment relations that run like a common thread among these factors and hold the key to the dynamics of CSP-FP link.

Corporate governance, corporate social responsibility and corporate performance

2010 ◽  
Vol 16 (5) ◽  
pp. 641-655 ◽  
Author(s):  
Chi-Jui Huang
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Positive Impact ◽  
Social Performance ◽  
Outside Directors ◽  
Asian Economy ◽  
Corporate Social

AbstractPrevious research has analyzed and debated corporate governance (CG) and corporate social responsibility (CSR) independently. This paper aims to empirically explore the interrelationship between CG, CSR, financial performance (FP) and Corporate Social Performance (CSP) using a sample of 297 electronics companies operating in Taiwan, a newly industrialized Asian economy. The results show that a CG model which includes independent outside directors and which has specific ownership characteristics has a significantly positive impact on both FP and CSP, whereas FP itself does not influence CSP. The presence of independent outside directors in the firm has the greatest impact on the social performance of the firm's worker, customer, supplier, community and society dimensions. Government shareholders enhance a firm's social performance extraordinarily because government shareholders will be more likely to request that companies fulfill their social responsibilities. Only government shareholders positively and significantly relate to a firm's environmental performance. Furthermore, foreign institutional stockholders help to increase worker and supplier performance by paying more attention to employee policies and supply chain relationships. Finally, independent outside directors, foreign institutional stockholders and domestic financial institutional stockholders are shown to improve financial performance.

scholarly journals Voluntary social performance disclosure and firm profitability of South African listed firms: Examining the complementary role of board independence and managerial ownership

2021 ◽  
Vol 24 (1) ◽  
Author(s):  
Frank Sampong ◽  
Na Song ◽  
Gilbert K. Amoako ◽  
Kingsley O. Boahene
Keyword(s):  
Corporate Governance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Executive Directors ◽  
Listed Firms ◽  
Complementary Role ◽  
Firm Profitability ◽  
Corporate Social

Background: There is growing literature promoting corporate governance mechanisms as important elements that could mitigate the inconclusive findings within the corporate social performance and firm profitability research. A key theoretical assumption within the extant literature that provides support for this proposition is that corporate social performance and firm profitability are organisational outcomes in the presence of good corporate governance.Aim: Firstly, the aim is to re-investigate voluntary social performance disclosure (SPD) and long-term profitability association from the perspective of international standards, using the Global Reporting Initiative G3.1 guidelines. Secondly, to examine the joint moderating effect of board independence and managerial ownership (MO) on the voluntary SPD and profitability nexus.Setting: The South Africa institutional setting, where recent corporate governance regimes require firms to voluntarily make corporate governance related disclosures on both shareholder-and stakeholder-related information is used as the study context.Method: Utilising manually extracted data of listed firms, over the period 2010 to 2015, the generalised least square regression and seemingly unrelated regression (with a 1-year lag as the main independent variable) are used to examine the stated hypotheses.Results: We found a positive association between voluntary SPD and long-term profitability. We also found that the presence of non-executive directors positively moderates the association between voluntary SPD and long-term profitability. Thirdly, the proportion of MO significantly positively moderates the association between voluntary SPD and long-term profitability. Lastly, the complementary role of the presence of non-executive directors and the proportion of MO significantly positively moderates the association between voluntary SPD and long-term profitability.Conclusion: This study finds support for scholarly theoretical arguments that organisational outcomes are largely possible in the presence of good corporate governance, which has a long-term implication for firms’ shareholder wealth maximisation. This study contributes to the ongoing research examining the notion of substitutive versus complementary effects of governance mechanisms, and a growing research literature on corporate social responsibility (CSR) disclosure from the perspective of international standardisation. This study therefore makes far-reaching contributions to the corporate governance and social responsibility literature in an African context.

The sensitivity of corporate social performance to corporate financial performance: A “time-based” agency theory perspective

2020 ◽  
pp. 031289622091719
Author(s):  
Bum-Jin Park ◽  
Ki-Hoon Lee
Keyword(s):  
Financial Performance ◽  
Agency Theory ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Managerial Incentives ◽  
Jel Classification ◽  
Corporate Financial Performance ◽  
Managerial Ownership ◽  
Corporate Social

This study focuses on micro-level phenomena and time issues that have been traditionally neglected in both corporate governance and corporate social responsibility research. Drawing on agency theory concerning time-based managerial incentives (i.e. short term and long term), we investigate which managerial incentives for compensation drive the sensitivity of corporate social performance ( CSP) to corporate financial performance ( CFP). Using data for publicly listed Korean firms, we found a significant and positive relationship between CSP and CFP, with this relationship strengthened in firms with high managerial ownership but insignificant in those with high earnings-based compensation. Furthermore, we found that the interaction effects of CSP and high earnings-based compensation on CFP become positive in firms with high managerial ownership, indicating that the sensitivity between CSP and CFP is driven by long-term managerial incentives. JEL Classification: M12, M14, G35

Developing a consumer relationship model of corporate social performance

2018 ◽  
Vol 35 (5) ◽  
pp. 543-554 ◽  
Author(s):  
Vicki Blakney Eveland ◽  
Tammy Neal Crutchfield ◽  
Ania Izabela Rynarzewska
Keyword(s):  
Corporate Social Performance ◽  
Social Performance ◽  
Shared Values ◽  
Consumer Involvement ◽  
Equation Modeling ◽  
Complex Nature ◽  
Content Type ◽  
Relationship Model ◽  
Corporate Social

Purpose This paper aims to address the complex nature of social performance (CSP/CSR) in building a trust-based consumer relationship. The relative and aggregate influence of corporate functional performance, corporate social performance (CSP) and shared values within a trust-based customer–brand relationship and their impact on behavioral loyalty in the forms of retention, referral and ease of voice are empirically tested. Design/methodology/approach Respondents were recruited to participate in a study on ice cream shop preferences. Structural equation modeling was used to simultaneously test the effects of independent variables on dependent variables. Findings Shared values mediate the effect that CSP has on trust and all loyalty behaviors. Trust has a significant influence on one behavior:retention. Research limitations/implications The findings may be specific by industry, product type or consumer involvement. Further tests should be performed with varying levels of each. Practical implications Millennial consumers expect organizations/brands to engage in CSR activities, and, because of increased CSP reporting, are aware of an organization’s CSR efforts. If the CSP does not reflect the customer’s value system (shared values), the long-term relationship can be impacted negatively. Firms must strategically consider the values communicated by their CSR activities to build and care for long-term relationships with their target consumer. Originality/value This research is the first to integrate and test a comprehensive consumer relationship model of CSP.

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.

scholarly journals Faktor-faktor yang Mempengaruhi Kinerja Keuangan Perusahaan BUMN yang Terdaftar di Bursa Efek Indonesia Periode 2015-2019

2021 ◽  
Vol 5 (1) ◽  
pp. 99
Author(s):  
Riris Kharisma ◽  
Kartika Hendra Titisari ◽  
Suhendro Suhendro
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Sampling Method ◽  
Secondary Data ◽  
Test Method ◽  
Company Size ◽  
Good Corporate Governance ◽  
Corporate Social

This study aims to determine the effect of good corporate governance, corporate social responsibility, leverage and company size on the financial performance of state-owned companies listed on the IDX. The data in this study use secondary data. The population in the study of all BUMN companies listed on the IDX for the 2015-2019 period. The sample used in this study was 9 samples of BUMN companies listed on the IDX for the 2015-2019 period, with the sampling method using purposive sampling method. The test method in this study uses multiple linear regression test. The results show that good corporate governance, leverage and company size affect the financial performance of BUMN companies listed on the IDX for the 2015-2019 period, on the other hand, corporate social responsibility does not affect the financial performance of BUMN companies listed on the IDX for the 2015-2019 period. had no effect on the financial performance of BUMN companies listed on the IDX for the 2015-2019 period.

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