CSR Disclosure and Investor Behavior: A Proposed Framework and Research Agenda

2017 ◽  
Vol 30 (2) ◽  
pp. 37-53 ◽  
Author(s):  
Katrin Gödker ◽  
Lasse Mertins
Keyword(s):  
Investment Decision ◽  
Investor Behavior ◽  
Corporate Disclosure ◽  
Individual Investor ◽  
Market Participants ◽  
Related Information ◽  
Investment Decision Making ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Future Work

ABSTRACT How market participants respond to corporate disclosure forms an important cornerstone in many areas of accounting and finance research. This article synthesizes behavioral research on how an increasingly important type of corporate disclosure, namely corporate social responsibility (CSR) disclosure, affects investor behavior. Structuring the extant accounting and finance literature, we derive a holistic framework that consolidates observed drivers of investors' information processing and resulting investment decision making when confronted with CSR disclosure. We identify both disclosure and individual investor characteristics that determine investor behavioral response to disclosed CSR-related information. Drawing on the proposed framework, we pinpoint knowledge gaps in the literature and provide guidelines for further research. Fundamental issues for future work include the decoupling of specific behavioral drivers through innovative measurement, the reliable identification of causal effects, and the incorporation of investors' social interactions.

scholarly journals International Real Estate Review

2020 ◽  
Vol 23 (4) ◽  
pp. 505-536
Author(s):  
Tsoyu Calvin Lin ◽  
◽  
Shih-Hsun Hsu ◽  
Keyword(s):  
Real Estate ◽  
House Prices ◽  
Investment Decision ◽  
Registration System ◽  
Market Participants ◽  
Related Information ◽  
Investment Decision Making ◽  
Number Of Visits ◽  
Future Policy ◽  
Actual Price

Taiwan launched the actual price registration system for real estate transactions in 2012. Real estate–related information, for e.g., prices, area and location, can be obtained through a search on this platform. Most market participants, including potential buyers and sellers, obtain property information before making their transaction decision. If the search behavior can be transferred into supply or demand action, then the number of visits to a website can be used as a leading indicator of price changes or transaction volume. This study has collected the number of visits to the actual price registration system in New Taipei City in Taiwan and other macro-economic variables from 2014 to 2019 and applied a model with vector auto-regression with exogenous variables (VARX) for empirical analysis. We find two important results in our analysis: 1. the transaction volume significantly leads house prices and the number of visits to this system in most districts, and 2. the number of visits leads transaction volume only in the district with a very good transportation system and infrastructures, and leads the house prices only in districts that have affordable house prices or deemed to be a “good value”. This is the first empirical study done after Taiwan launched the actual price registration system. Governments in other countries can launch similar systems and market participants can apply the findings of this study to their future policy and investment decision making process.

scholarly journals Behavioral Issues for Sustainable Investment Decision-Making: A Literature Review

2016 ◽  
Vol 12 (1) ◽  
pp. 1 ◽  
Author(s):  
Andrea Tomo ◽  
Giovanni Landi
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Managerial Decision ◽  
Behavioral Issues ◽  
Responsible Behavior ◽  
Thomson Reuters ◽  
Investment Decision Making ◽  
Decision Making Processes ◽  
Sustainable Investment ◽  
Corporate Social

The aim of this work is to understand the role of the Environmental, Social and Governance (ESG) paradigm in the corporate assessment by investors and the use of this paradigm as guide for managerial decision-making process by corporations. A review of the international literature is provided using five different couples of keywords on Thomson Reuters ISI Web of Knowledge research engine. The literature production increased only after the 2007 crisis and the median year of the results is 2011, thus highlighting just a recent attention to themes as ethics and corporate social responsibility. Main limitations are related to the classic limitations of literature reviews, as the choice of number and type of keywords and journals, the resulting selection of studies, the choice of relevant outcomes and the interpretation, generalization and application of results. The study provides both theoretical and practical implications: a complete review of contributions on the theme is provided; then, some insights in investors and corporations behaviors through the ESG lens, thus suggesting a more ethical and responsible behavior in investment decision-making processes.

scholarly journals Hubungan Kausalitas antara Kinerja Sosial dan Ekonomi Perusahaan

TRIKONOMIKA ◽  
2013 ◽  
Vol 12 (1) ◽  
pp. 93
Author(s):  
Paulina Permatasari
Keyword(s):  
Economic Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Corporate Disclosure ◽  
Corporate Social Reporting ◽  
Report Analysis ◽  
Causality Relationship ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Slack Resource

The purpose of this study is to investigate the causality of relationship between the corporate economic performance and corporate social performance and also to get a picture about disclosure of Corporate Social Reporting (CSR) performance of companies in Indonesia that have deployed and published Standalone Sustainability Reports, and/or has disclosed Social and Environmental Responsibility or Sustainability in Annual Report, and the company website. The variables used to measure corporate economic performance are company size, profitability, leverage, and growth. The corporate social performance is measured by using an CSR disclosure index. The Causality relationship between corporate economic and social performance is based on the Slack Resource Theory and Good Management Theory. As the pilot study, a sample of 34 companies listed on JSX is taken using stratified random sampling method with 2010 data as the focus of the report analysis. The result of this study shows that there’s no significant relationship between Corporate Economic and Corporate Social Performance. The study also shows the low level of corporate disclosure of CSR.

scholarly journals CSR disclosure in response to major airline accidents: a legitimacy-based exploration

2016 ◽  
Vol 7 (1) ◽  
pp. 26-43 ◽  
Author(s):  
Petros Vourvachis ◽  
Thérèse Woodward ◽  
David G. Woodward ◽  
Dennis M Patten
Keyword(s):  
Annual Report ◽  
Annual Reports ◽  
Corporate Disclosure ◽  
Content Type ◽  
Social Legitimacy ◽  
Airline Accidents ◽  
Major Airlines ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Practical Implications

Purpose – The purpose of this paper is to contribute to the literature investigating disclosure reactions to legitimacy threats by analyzing the corporate social responsibility (CSR) disclosure reactions to catastrophic accidents suffered by major airlines. Design/methodology/approach – The authors use content analysis to examine changes in annual report disclosure in response to four separate airline disasters. The authors adopt two classification schemes and two measurement approaches to explore these changes. Findings – The authors find that for three events the organizations appear to have responded with considerable increases in CSR disclosure that are consistent with attempts of legitimation. For one of the events examined, the authors find no disclosure response and suggest that this could be due to the company’s unwillingness to accept responsibility. Research limitations/implications – The study’s focus on major airlines that have suffered an accident with available annual reports in English meant that other companies had to be excluded from the analysis. Practical implications – The findings demonstrate the use of the annual report as a legitimation tool and further highlight the need for greater transparency and comparability across publications. Originality/value – The paper adds to the scarce literature examining corporate disclosure reactions following threats to their social legitimacy.

scholarly journals ANALYSIS OF CONSIDERATIONS IN CSR ASPECT TOWARDS INCENTIVE TAX OF PT MASPION III IN SIDOARJO JAWA TIMUR (An Empirical Study of CSR at PT. Maspion III Sidoarjo)

2019 ◽  
Vol 3 (04) ◽  
Author(s):  
Bayu Adi ◽  
Moh Afrizal Miradji
Keyword(s):  
Corporate Social Responsibility ◽  
Public Relations ◽  
Social Responsibility ◽  
Business Strategy ◽  
Investment Decision ◽  
Business Value ◽  
Income Taxes ◽  
Permanent Establishment ◽  
Investment Decision Making ◽  
Corporate Social

CSR has developed into part of the company's business strategy, mainly related to the functions of marketing, public relations, and investment-decision making (Subagyo, 2018). PT. Maspion III in CSR activities has developed into a part of the company's business strategy. in the taxation aspect at PT. Maspion III is one of the important factors that is considered by an organization in designing its CSR program to produce CSR programs that can add business value as well as tax favorable. Whereas on the other hand Maspion III spent funds for its CSR program based on Act Number 36 of 2008 which has regulated the treatment of Income Taxes on expenses or costs incurred in the context of Corporate Social Responsibility (CSR). Provisions regarding this matter are regulated in Article 6 paragraph (1) letters I, j, k, l, and m, in which it is stressed that the amount of taxable income for permanent establishment of permanent establishment), which in fact is reduced in Article 1 PP 93 of the year 2010, for the expenditure of Corporate Social Responsibility (CSR) which can be deducted by a certain%. While for PT. Maspion III for its CSR Program exceeds the provisions of 5%. Therefore, to be able to produce CSR programs that can produce business value programs as well as tax favorable, it is better if the taxpayer considers the taxation aspects when designing his CSR program. Keywords: CSR Aspect Considerations, CSR Tax Incentives, CSR draft, Law

scholarly journals FACTORS INFLUENCING INVESTMENT DECISION MAKING IN SWIFTLET RANCHING INDUSTRY: THE CASE OF GUA MUSANG AND JOHOR BAHRU

2019 ◽  
Vol 4 (16) ◽  
pp. 27-38
Author(s):  
Fatin F. Ya’acob ◽  
Mohd Shahwahid Haji Othman ◽  
Rabiatul Munirah Alpandi ◽  
Siti Mariam Mellisa Abdullah ◽  
Mohd Hafiz Ghazali
Keyword(s):  
Decision Making ◽  
Structural Equation ◽  
Investment Decision ◽  
Investor Behavior ◽  
Bird Nest ◽  
First Order ◽  
Factors Influencing ◽  
Equation Modelling ◽  
Investment Decision Making ◽  
Determining Factors

The edible bird nest industry is an entry point project under the Malaysian Transformation Plan. The number of swiftlet houses has increased three and a half folds from 2011 to 2016 but with this trend swiftlet houses, failure ranged from 70 to 80 percent. This study focuses on understanding the investors’ behavior in this industry and on determining factors that are influencing their investment decision. The basic framework of analysis is the investor behavior theory by applying for the formative first order Partial Least Squares-Structural Equation Modelling model. The data collected from 180 ranchers randomly interviewed from two districts namely Johor Bahru and Gua Musang. The result revealed that heuristic is a first decision construct that has the highest impact on investment decision making followed by market, herding and prospect decision construct.

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