scholarly journals Corporate Social Responsibility and its Nexus with Firm Performance and Institutional Ownership: An Emerging Market Context

2020 ◽  
Vol 6 (2) ◽  
pp. 845-858
Author(s):  
Amna Noor ◽  
Muhammad Farooq ◽  
Mahwish Yamin ◽  
Saleh Nawaz Khan
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Strategic Alliance ◽  
Emerging Market ◽  
Negative Relationship ◽  
Institutional Ownership ◽  
Significant Negative Relationship ◽  
Corporate Social

Either corporate social responsibility (CSR) is paramount for the firms or not, is a matter of  question since long. The present study analyzes this relationship in the context of moderating  role of Institutional ownership (IO). Firm performance is measured through accounting and  market value measures. Leverage, firm age, firm size, and log of sales revenue used as a control  variables. Through applying panel data techniques, findings demonstrate insignificant positive  association between CSR and firm performance. It shows that stakeholder could not assign value  to firms spending as a CSR. This could be the reason that customers are not much aware about  firms CSR activities hence, firms fail to capitalize their spending as an investment. Institutional  Ownership (IO) reveals negative insignificant association with all profitability measures except  Tobin’s Q where this relationship is significant. This significant negative relationship supports  the agency theory and presence of strategic alliance hypotheses between influential institutional  owners and internal management that leads to lower firm performance. The interaction variable  of CSR and IO show positive but insignificant relationship with firm performance by all means. 

scholarly journals Corporate Social Responsibility and Firm Performance: Evidence from an Emerging Market

2017 ◽  
Vol 6 (4) ◽  
pp. 42 ◽  
Author(s):  
Elif Akben Selcuk ◽  
Halil Kiymaz
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Performance ◽  
Emerging Market ◽  
Negative Relationship ◽  
Annual Reports ◽  
Socially Responsible ◽  
Return On Assets ◽  
Corporate Social

This study focuses on the relationship between firm performance and corporate social responsibility (CSR) of firms listed on Borsa Istanbul during the period of 2009-2011. We use content analysis of annual reports/websites of Turkish firms for any socially responsible activities. We find a negative relationship between CSR and financial performance, meaning that firms which disclose more information about CSR initiatives in their annual reports have a lower return on assets. After controlling for debt and size of the firms, we further find that while highly levered firms are less profitable, larger firms have higher profits. Finally, we do not find any significant relationships between research and development expenditures and financial performance.

scholarly journals The role of corporate governance in emerging market: Tax avoidance, corporate social responsibility disclosures, risk disclosures, and investment efficiency

2020 ◽  
Vol 9 (3) ◽  
pp. 8-26 ◽  
Author(s):  
Amrie Firmansyah ◽  
Gitty Ajeng Triastie
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Market ◽  
Tax Avoidance ◽  
Investment Efficiency ◽  
Manufacturing Companies ◽  
Corporate Social ◽  
Risk Disclosures

This study aims to examine the effect of tax avoidance, corporate social responsibility disclosures, and risk disclosures on investment efficiency. This study also examines the role of corporate governance in the association between tax avoidance, corporate social responsibility disclosures, risk disclosures, and investment efficiency. This study uses multiple linear regression with panel data. The sample uses 43 manufacturing companies listed on the Indonesian Securities Exchange from 2014 up to 2017 so that the total sample in this study amounted to 172 firm-years. The result suggests that tax avoidance is negatively associated with investment efficiency. However, corporate social responsibility disclosures and risk disclosures do not affect investment efficiency. Furthermore, another result suggests that corporate governance failed to moderate the effect of tax avoidance on investment efficiency. Besides, corporate governance can weaken the negative influence of corporate social responsibility disclosures on investment efficiency as well as corporate governance drives the negative effect of risk disclosures on investment efficiency.

Corporate social responsibility, innovation capability and firm performance: evidence from SME

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dawit Bahta ◽  
Jiang Yun ◽  
Md Rashidul Islam ◽  
Muhammad Ashfaq
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Performance ◽  
Developing Country ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this paper is to examine corporate social responsibility (CSR) and its effect on small and medium enterprises’ (SMEs) innovation capability and financial performance from the perspective of a developing country. It also aims to explore the role of innovation capability as a mediating factor in the linkage between CSR and SMEs’ financial performance. Design/methodology/approach A questionnaire was distributed among managers/owners of the sampled companies. Using a data set of 402 Eritrean firms and partial least squares structural equation modeling, direct and mediating effects were tested. Findings The result reveals that CSR has a positive and significant effect on the financial performance and innovation capability of SEMs. Besides, innovation capability has a positive and significant effect on the business performance of SMEs. The result also supports a partial mediation effect of innovation capability on the association between CSR and firm performance. Practical implications The findings from this research could enhance the awareness of the entrepreneurs, researchers and policymakers on CSR-SMEs’ relationship and help understand the importance of CSR as a crucial driver mechanism for companies to become more innovative and competitive. Originality/value By empirically examining the relationship between CSR, innovation capability and performance in SMEs, this study contributes to the ongoing scholarly discussion on the linkage between CSR and financial performance. Also, to the best of the authors’ knowledge, no other study investigated the mediating role of innovation capability on the link between CSR activities and firms’ financial performance in SMEs from a developing country perspective, making substantial contributions to research in terms of theory, practice and policy.

scholarly journals Culture, Motivational Attributes and Employees’ Perception towards CSR Practices: Evidence From Pakistan

2019 ◽  
Vol 3 (1) ◽  
pp. 58
Author(s):  
Sultana Jabeen ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Corporate Social Responsibility ◽  
Data Analysis ◽  
Social Responsibility ◽  
Cultural Values ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Survey Questionnaire ◽  
Cultural Framework ◽  
Corporate Social

The purpose of this paper is to analyze the employees–corporate social responsibility (CSR) relationship by studying the influence of two cultural values – collectivism and masculinity –on the formation of CSR perceptions. We adopted theoretical framework proposed by Hur and Kim (2017), in which Hofstede’s cultural framework was proposed to explain the effect of the cultural values on employees’ perceptions of CSR practices with the mediatory role of motivational attributions. To establish this framework empirically on Pakistan, a survey questionnaire was used to collect data from 190 employees’ in Pakistan. Data analysis was performed using SEM and CFA. The results indicate that collectivistic (masculine) values were positively (negatively) related to perceptions of CSR. Furthermore, intrinsic attributions of CSR initiatives mediate the positive relationship between collectivism and CSR perceptions and the negative relationship between masculinity and CSR perceptions. These findings suggest that managers must seek to understand employees’ cultural characteristics and the attributions of CSR motivations in order to engage them in driving CSR practices effectively and displaying a positive image of organization.

Does board gender enhance Palestinian firm performance? The moderating role of corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed W.A. Saleh ◽  
Mohammad A.A. Zaid ◽  
Rabee Shurafa ◽  
Zaharaddeen Salisu Maigoshi ◽  
Marwan Mansour ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Panel Data ◽  
Social Responsibility ◽  
Gender Diversity ◽  
Content Type ◽  
Listed Firms ◽  
Board Gender Diversity ◽  
Corporate Social

Purpose This study aims to examine how the salient board gender diversity among board directors affects firm performance both directly and indirectly, through the role of corporate social responsibility (CSR) in listed firms on the Palestine Stock Exchange over the period 2010–2017. Design/methodology/approach Based on panel data of 384 observations from all firms listed on the Palestine Security Exchange during the period from 2010 to 2017, this study uses panel data regression to examine the effect of the predictors on firm performance. In addition, to mitigate the endogeneity issue, the analysis was repeated by using one-step generalized method of moments. Findings The results show that board gender diversity has a positive and insignificant influence on firm performance. However, under the moderating effect of CSR, the finding turns from positive insignificant to positive significant. Originality/value The study is timely given that gender diversity plays pivotal roles in determining the performance in terms of monitoring and controlling and further willing to engage in social responsibility. The prior research in Palestine has never investigated the effect of board gender diversity. As such, Palestine has not established a legal quota of minimum female representation on boards, and because of it, the country has weak women’s representation among firms. It, therefore, becomes a necessity to examine the influence of board gender diversity on the financial performance of listed firms in Palestine. Besides, the mixed result in previous literature on the board gender diversity and firm performance indicates that there is an indirect effect that needs alternative explanations.

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