Nonfinancial Disclosure and Analyst Forecast Accuracy: International Evidence on Corporate Social Responsibility Disclosure

2012 ◽  
Vol 87 (3) ◽  
pp. 723-759 ◽  
Author(s):  
Dan S. Dhaliwal ◽  
Suresh Radhakrishnan ◽  
Albert Tsang ◽  
Yong George Yang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Forecast Accuracy ◽  
Data Availability ◽  
Financial Disclosure ◽  
Analyst Forecast ◽  
Nonfinancial Information ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Relationship

ABSTRACT We examine the relationship between disclosure of nonfinancial information and analyst forecast accuracy using firm-level data from 31 countries. We use the issuance of stand-alone corporate social responsibility (CSR) reports to proxy for disclosure of nonfinancial information. We find that the issuance of stand-alone CSR reports is associated with lower analyst forecast error. This relationship is stronger in countries that are more stakeholder-oriented—i.e., in countries where CSR performance is more likely to affect firm financial performance. The relationship is also stronger for firms and countries with more opaque financial disclosure, suggesting that issuance of stand-alone CSR reports plays a role complementary to financial disclosure. These results hold after we control for various factors related to firm financial transparency and other potentially confounding institutional factors. Collectively, our findings have important implications for academics and practitioners in understanding the function of CSR disclosure in financial markets. Data Availability: The data are publicly available from the sources identified in the paper.

scholarly journals Corporate Social Responsibility and Firm Financial Performance: A Case of SME’s Sector in Pakistan.

2020 ◽  
Vol 1 (2) ◽  
pp. 62-74
Author(s):  
Waqas Ahmad WATTO ◽  
Daniel T H MANURUNG ◽  
Komang Adi Kurniawan SAPUTRA ◽  
Syed Gulam MUSTAFA
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Organizational Performance ◽  
Innovation Performance ◽  
Integrative Model ◽  
Data Set ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Relationship

The paper assesses its relationship with firm innovation and Organizational performance in a single integrative model by using spss data set of 53 Pakistani SME’s firms. A questionnaire of self-administrative is developed to collect the data. Researcher personally visits of different SME’s firms and collect the data from manager of SME’s firms. The research use 275 questionnaire is distributed in different SME’s sector. In this study the statistical techniques of data analysis are used to investigate and find out the relationship among the Firm performance and the other factors. SPSS version16 is used for reliability analysis, descriptive statistics, regression analysis, correlation analysis, to check either modal is good fit or not. Our results supports a partial mediation effect of innovation performance on the relationship between corporate social responsibility and firm performance, meanwhile the effect of corporate social responsibility on firm performance shrinks upon the adding of innovation performance to the model. The findings may help to understand how corporate social responsibility is an important driver mechanism for companies to be more inventive, proficient and effective.

scholarly journals THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON ISLAMIC BANKING PERFORMANCE IN MALAYSIA

2021 ◽  
Vol 3 (8) ◽  
pp. 01-15
Author(s):  
Nur Hanisah Razali ◽  
Nizam Jaafar ◽  
Ismail Ahmad
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Future Research ◽  
Socially Responsible ◽  
Firm Financial Performance ◽  
Effect Regression ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Corporate Social Responsibility (CSR) activities can lead the company to gain better recognition from citizens and investors. CSR has become one of the added values for a company in increasing competition from global and domestic. However, there are some critics who contend that the CSR benefits surpass the actual cost and some also claim that for the company to be socially responsible is too expensive. Therefore, the objective of this study is to determine the relationship between Corporate Social Responsibility (CSR) impacts on the Islamic Banks' financial performance, specifically in Malaysia. This study used Fixed Effect Regression Model to achieve the objectives of this study. The independent variables used to determine CSR comprise of environment, community, and workplace and marketplace expenditure ratio. Meanwhile, to measure the financial bank performance that is the dependent variable, Return on Asset (ROA) is used in this study. Based on this model, the researcher concluded that CSR’s elements which are environment, community, and marketplace have significant impacts on banks financial performance. This is consistent with Stakeholder Theory which states that the firm financial performance is determined by external stakeholders. In order to enhance the study future research may segregate the focus of the study specifically on Islamic Bank or conventional banking. Future research may also conduct research on the different industries.

How does corporate social responsibility influence firm financial performance?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sourour Ben Saad ◽  
Lotfi Belkacem
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Capital Structure ◽  
Financial Performance ◽  
Content Type ◽  
Firm Financial Performance ◽  
Structure Channel ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Relationship

Purpose This paper has three main purposes. First, this paper aims to study the effect of corporate social responsibility (CSR) on firm financial performance. Second, this study aims to examine how mandatory CSR disclosure impacts financial performance. Further, this paper aims to investigate the intervening role of capital structure decisions on the relationship between CSR and financial performance. Design/methodology/approach Based on a sample of French non-financial listed companies over the period 2006–2017, this study uses structural equations modeling and a difference-in-differences approach to highlight these effects. Findings This paper finds that CSR has a significant positive association with financial performance. In addition, although the mandate does not require firms to spend on CSR, the socially responsible firms experience an increase in profitability subsequent to the mandate. Finally, this study argues and finds evidence that the relationship between CSR and financial performance is mediated through the capital structure channel. Originality/value This paper contributes to the literature in several ways. First, the study provides a new research stream by examining the effect of mandatory CSR disclosure on firm financial performance. Second, is to knowledge the first to examine whether and how CSR affects financial performance through the capital structure channel.

Effects of Corporate Social Responsibility on Corporate Financial Performance: A Competitive-Action Perspective

2015 ◽  
Vol 44 (3) ◽  
pp. 1097-1118 ◽  
Author(s):  
Kwang-Ho Kim ◽  
MinChung Kim ◽  
Cuili Qian
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Financial Performance ◽  
Socially Responsible ◽  
Firm Financial Performance ◽  
Competitive Action ◽  
Using Data ◽  
Corporate Social ◽  
The Relationship

We attempt to provide a more nuanced view of the relationship between corporate social responsibility (CSR) and firm financial performance using a competitive-action perspective. We argue that competitive action should be considered as an important contingency that determines the effects of CSR activities on firm financial performance. Using data for 113 publicly listed U.S. firms in the software industry between 2000 and 2005, we found that socially responsible activities (positive CSR) enhance firm financial performance when the firm’s competitive-action level is high, whereas socially irresponsible activities (negative CSR) actually improve firm financial performance when the competitive-action level is low. By introducing competitive action as an important contingency, this study contributes to the literature on CSR and strategic management.

Corporate social responsibility and future financial performance

2018 ◽  
Vol 13 (3) ◽  
pp. 351-371 ◽  
Author(s):  
Mahdi Salehi ◽  
Mahmoud Lari DashtBayaz ◽  
Sohila Khorashadizadeh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Emerging Market ◽  
Return On Assets ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Future ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between corporate social responsibility (CSR) expenditures and firm financial performance in an emerging market. Design/methodology/approach The authors examine the hypotheses by performing panel data analysis on a sample of 159 companies listed on the Tehran Stock Exchange during 2010–2015. Findings The findings suggest that the investment in CSR initiatives is significantly and positively associated with firm financial performance as proxied by changes in return on assets. Moreover, the findings confirm a positive and significant association between CSR expenditures and firm financial performance as proxied by both the future changes in return on assets and the future changes in operating cash flows scaled by total assets. Originality/value The present study has examined the relationship between CSR and firm financial performance in a country where, to the authors’ knowledge as in most other developing markets, such a relationship has not been a subject of empirical research. Besides, the use of a three-dimensional measure of financial performance, primarily considering research undertaken in an emerging market, as a valuable contribution may be observed.

scholarly journals Corporate Social Responsibility Engagement, Economic Policy Uncertainty, and Firm Financial Performance

1970 ◽  
Vol 37 (2) ◽  
pp. 1-21
Author(s):  
Bruce Walters ◽  
Sammy Muriithi ◽  
Otis Gilley
Keyword(s):  
Economic Policy ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Policy Uncertainty ◽  
Strategic Decisions ◽  
Economic Policy Uncertainty ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Relationship ◽  
Csr Engagement

The link between corporate social responsibility (CSR) engagement and firmfinancial performance has been examined in a variety of contexts. We extend thislink to an understudied but important context for strategic decisions: environmentaluncertainty. We draw on stakeholder theory to investigate the potential moderatinginfluence of an increasingly important measure of environmental uncertainty –economic policy uncertainty (EPU), on the CSR-performance relationship. Paneldata analysis of 484 firms using KLD data and the Compustat/Capital IQ databasereveal that EPU appears to moderate the relationship between CSR and financialperformance. Moreover, supplemental analysis reveals that this moderatedrelationship varies when considering individual components of CSR. Implicationsfor both research and practice are suggested regarding managers’ emphases amongvarious CSR initiatives in times of high policy uncertainty.

scholarly journals The impact of corporate social responsibility on firm performance: Evidence form a MENA country

2014 ◽  
Vol 12 (1) ◽  
pp. 761-774 ◽  
Author(s):  
Mohamed A. K. Basuony ◽  
Reham I. Elseidi ◽  
Ehab K. A. Mohamed
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Performance ◽  
Organization Performance ◽  
Cross Sectional ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

This paper investigates the effect of corporate social responsibility (CSR) on organization performance. It uses cross sectional data from non-financial companies in Egypt that derived from the Kompass Egypt data base. Regression analysis was used to explain the relationship and the effect of CSR on organization financial performance. The findings of this study found that there is a positive and significant effect of CSR on firm performance. Also, all CSR dimensions have significant relationship with firm financial performance. Furthermore, one of the conclusions of this study is that larger and older firms have a positive effect on financial performance (profitability) which will lead to enhance use of better CSR practice

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