The impact of corporate social responsibility on earnings quality in UK listed firms

A business committed to CSR activities can establish a favourable reputation in the market hence this reputation can be used to mislead the market by making them rely on the financial reporting of the organisation. This study aimed to investigate the relationship between CSR and earnings quality for firms listed on FTSE 350. Besides, it aimed to explore the impact of CSR on the motivation of the management to improve the earnings quality or manage earnings. The research has applied LSDV regression and OLS regression on the data collected from 217 firms listed on the FTSE 350. The respective regression models applied by keeping earnings quality as a dependent variable and range of independent variables such as CSR, SIZE, GROWTH, LEVERAGE and ROA. Besides, the correlation coefficient has also been calculated despite, the result could not reveal the nature of the relationship between the variables hence regression model was applied. The results have revealed no relationship between earnings quality and CSR in the case of LSDV regression model. The same has been observed for the OLS model however, there exists a relatively significant relationship between earnings quality and LEVERAGE. Similar findings recorded for earnings quality and GROWTH.

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Exploring the Impact of Ownership Structure on Earnings Predictability: Insights from Japan

Indian Journal of Corporate Governance ◽

10.1177/0974686216666453 ◽

2016 ◽

Vol 9 (2) ◽

pp. 97-121

Author(s):

Mohammed Mehadi Masud Mazumder

Keyword(s):

Ownership Structure ◽

Earnings Quality ◽

Insider Ownership ◽

Listed Firms ◽

Reporting Practices ◽

Corporate Reporting ◽

Earnings Predictability ◽

Institutional Shareholders ◽

The Impact ◽

The Relationship

Using a very recent data over the period from 2007 to 2012 (sample period 2001–2012), this study estimates the relationship between ownership structure and earnings predictability in Japanese listed companies. In particular, this study investigates how three important categories of ownership (i.e., domestic institutional, foreign and insider ownership) are associated with earnings predictability in Japanese listed firms. The results show that higher domestic institutional (financial) ownership is associated with greater earnings predictability. The findings support the argument that institutional shareholders especially financial institutions ensure effective monitoring over corporate reporting practices which lead to better earnings quality. In sharp contrast, this study finds that incremental foreign institutional ownership in Japanese listed firms is associated with lower earnings predictability. Such finding is contrary to the oversimplifying assumption that increasing cross-border shareholdings is always associated with better earnings quality. This study demonstrates interesting insights regarding the impact of ownership structure on earnings predictability which surely carry significance for Japanese corporate policymakers and future researchers.

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The Impact of Climate Change on Agriculture in Morocco: An Econometric Study

Journal of Environmental and Agricultural Studies ◽

10.32996/jeas.2020.1.2.4 ◽

2020 ◽

Vol 1 (2) ◽

pp. 19-28

Author(s):

Faycel Tazigh

Keyword(s):

Climate Change ◽

Linear Regression ◽

Regression Model ◽

Multiple Linear Regression ◽

Linear Regression Model ◽

Multiple Linear Regression Model ◽

Independent Variables ◽

Temperature And Precipitation ◽

The Impact ◽

The Relationship

This paper aims to analyze the relationship that may exist between climate change and cereal yield in Morocco. In order to study this correlation between variables, we used the most common form of regression model which is the multiple linear regression model. There are two main uses of multiple linear regression model. The first one is to quantify the weight of impact that the independent variables had on the dependent variable. The second use is to predict not only the relationship that may found between variables but also their impacts. In our case, we have chosen temperature and precipitation as an independent variables and cereal yield as dependent variable.

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Does Corporate Social Responsibility Affect the Financial Performance of the Manufacturing Sector? Evidence from an Emerging Economy

Sustainability ◽

10.3390/su11041182 ◽

2019 ◽

Vol 11 (4) ◽

pp. 1182 ◽

Cited By ~ 6

Author(s):

Jacob Cherian ◽

Muhammad Umar ◽

Phung Thu ◽

Thao Nguyen-Trang ◽

Muhammad Sial ◽

...

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Return On Assets ◽

Board Size ◽

Independent Variables ◽

Corporate Social ◽

The Impact ◽

The Relationship

The present study analyzed the impact of corporate social responsibility (CSR) reporting on the financial performance of Indian companies. It used secondary data from 50 manufacturing companies over the period of fiscal years 2011 to 2017. The results suggested that there exists a significant relationship between the performance of Indian companies and their CSR. The CSR not only improves the firm’s social value and reputation but also improves profitability and performance. According to the results, return on assets is significantly determined by corporate governance, customers, products, number of employees, and board size. The customer has a negative impact on return on assets (ROA). The relationship between return on equity and independent variables is the same as the relationship between ROA and independent variables. Corporate governance and product positively impact ROE, but the relationship between customers, number of employees, and board size are negative. Corporate governance and product positively impact return on capital employed (ROCE), but the relationship between customer and the number of employees is negative. Education has positive impact on profit after tax (PAT) and profit before tax (PBT), but the PAT relationship between environments is negative. Corporate governance and product positively impact PBT. In general, we concluded that in India, socially responsible corporations perform better and vice versa.

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CSR disclosures and profit persistence: evidence from India

International Journal of Emerging Markets ◽

10.1108/ijoem-03-2020-0246 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Dinesh Jaisinghani ◽

Amritjot Kaur Sekhon

Keyword(s):

Negative Relationship ◽

Content Type ◽

Listed Firms ◽

Total Community ◽

Dynamic Panel Regression ◽

Different Dimensions ◽

Csr Disclosure ◽

Corporate Social ◽

The Impact ◽

The Relationship

PurposeThe purpose of the present study is to analyze the impact of corporate social responsibility (CSR) disclosures on firms' profitability and its persistence.Design/methodology/approachThe study has been conducted for listed firms operating in India from 2008 to 2017. Content analysis has been utilized to estimate the CSR disclosures score. Further, dynamic panel regression has been utilized to estimate the relationship between CSR disclosures and profit persistence.FindingsThe results confirm positive profit persistence for Indian companies. The results further show that different dimensions of CSR disclosure have differential impact on firms' profitability. CSR dimensions concerning total community development and product-related disclosures have a positive relationship, whereas dimensions related to environmental and customer-related disclosures have a negative relationship with financial performance. The results also indicate that CSR disclosures are significantly related to profit persistence.Originality/valueThe study is first of its kind that analyzes the impact of CSR disclosure on profit persistence for Indian companies. The results can provide useful implications for managers and regulators in terms of formulation of overall CSR policies.

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ERP Systems and Earnings Quality: The Impact of Dominant Shareholdings in China

Journal of Emerging Technologies in Accounting ◽

10.2308/jeta-51547 ◽

2016 ◽

Vol 13 (2) ◽

pp. 49-69

Author(s):

Songsheng Chen ◽

Ling Harris ◽

Jiao Lai ◽

Wenying Li

Keyword(s):

Financial Reporting ◽

Earnings Quality ◽

Discretionary Accruals ◽

Erp Systems ◽

Absolute Value ◽

Listed Firms ◽

Enterprise Resources Planning ◽

Post Test ◽

The Absolute ◽

The Impact

ABSTRACT Using a sample of ERP adopters among Chinese publicly listed firms and a one-group pre- and post-test design, this study examines the impact of dominant shareholdings on the relationship between Enterprise Resources Planning (ERP) systems and earnings quality. We use the absolute value of discretionary accruals as a proxy for earnings quality. We predict and find that as the dominant shareholdings increase, Chinese firms show a decrease in the absolute value of total discretionary accruals after ERP implementations. Furthermore, we find that after ERP implementations, discretionary short-term accruals decrease with higher dominant shareholdings, while discretionary long-term accruals increase with higher dominant shareholdings. Our study contributes to research and practice by documenting that dominant shareholdings in China can influence the impact of ERP implementations on earnings quality, suggesting that dominant shareholdings may induce dominant shareholders' self-serving incentives to influence firms' financial reporting via ERP implementations.

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Capital Structure and Earnings per Share: An Empirical Analysis of Indian Corporate Sector

International Journal of Financial Management ◽

10.21863/ijfm/2015.5.3.013 ◽

2015 ◽

Vol 5 (3) ◽

Cited By ~ 1

Author(s):

Harvinder Singh Mand ◽

Manjit Singh

Keyword(s):

Capital Structure ◽

Empirical Analysis ◽

Corporate Sector ◽

Independent Variables ◽

Earnings Per Share ◽

Panel Data Regression ◽

Data Regression ◽

The Impact ◽

The Relationship ◽

The Empirical Analysis

This paper intends to measure the impact of capital structure on EPS (earnings per share) in Indian corporate sector. Fifteen control variables along with capital structure have been selected to know their impact on EPS. Panel data regression has been applied to establish the relationship among dependent and independent variables. It is found from the empirical analysis that the relation of capital structure with EPS has been statistically insignificant in Indian corporate sector among all specific industries except telecommunication industry. The results are consistent with Modigliani-Miller approach.

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Corporate Social Responsibility and Financial Reporting Quality:Evidence from Restatements

Accounting and the Public Interest ◽

10.2308/api-19-010 ◽

2020 ◽

Author(s):

Yi-Hung Lin ◽

Hua-Wei (Solomon) Huang ◽

Mark E. Riley ◽

Chih-Chen Lee

Keyword(s):

Financial Reporting ◽

Negative Relationship ◽

Reporting Quality ◽

Financial Statements ◽

Financial Statement ◽

Financial Reporting Quality ◽

Csr Reporting ◽

Corporate Social ◽

Reporting Environment ◽

The Relationship

We find a negative relationship between aggregate CSR scores and the probability that firms restated financial statements over the period 1991-2012. We then break that period into three sub-periods in order to determine whether the relationship holds for all three sub-periods. During the sub-periods of 1991-2001 and 2002-2005, the negative CSR score - restatement probability relationship holds. The negative relationship disappears in the 2006-2012 sub-period. Additional analyses indicate CSR scores are significantly higher in the 2006-2012 sub-period, suggesting the disappearance of the relationship between aggregate CSR scores and financial statement quality may relate to changes in CSR assessments and the CSR reporting environment. Our findings update the literature linking CSR scores and financial reporting quality and identify the need for further research as to the reasons the link between these constructs disappeared.

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Be Aware of Burnout! The Role of Changes in Academic Burnout in Problematic Facebook Usage among University Students

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph18158055 ◽

2021 ◽

Vol 18 (15) ◽

pp. 8055

Author(s):

Katarzyna Tomaszek ◽

Agnieszka Muchacka-Cymerman

Keyword(s):

Regression Coefficient ◽

Population Sample ◽

Cross Sectional ◽

Academic Burnout ◽

Independent Variables ◽

Social Motive ◽

Explained Variance ◽

The Impact ◽

The Relationship

Most previous research has examined the relationship between FB addiction and burnout level by conducting cross-sectional studies. Little is known about the impact of changes in burnout on FB addiction in an educational context. Through a two-way longitudinal survey of a student population sample (N = 115), this study examined the influence of changes in academic burnout over time and FB motives and importance (measured at the beginning and the end of the semester) on FB intrusion measured at the end of the academic semester. The findings show that: (1) increases in cynicism and in FB motives and importance significantly predicted time2 FB intrusion; (2) FB importance enhanced the prediction power of changes in the academic burnout total score, exhaustion and personal inefficacy, and reduced the regression coefficient of changes in cynicism; (3) the interaction effects between FB social motive use and changes in academic burnout, as well as between FB importance and personal inefficacy and exhaustion, accounted for a significant change in the explained variance of time2 FB intrusion. About 20–30% of the variance in time2 FB intrusion was explained by all the examined variables and by the interactions between them. The results suggest that changes in academic burnout and FB motives and importance are suppressive variables, as including these variables in the regression model all together changed the significance of the relationship between independent variables and FB intrusion.

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The Impact of Weather and Seasons on Falls and Physical Activity among Older Adults with Glaucoma: A Longitudinal Prospective Cohort Study

Sensors ◽

10.3390/s21103415 ◽

2021 ◽

Vol 21 (10) ◽

pp. 3415

Author(s):

Hursuong Vongsachang ◽

Aleksandra Mihailovic ◽

Jian-Yu E ◽

David S. Friedman ◽

Sheila K. West ◽

...

Keyword(s):

Physical Activity ◽

Older Adults ◽

Fall Prevention ◽

Regression Models ◽

Activity Promotion ◽

Injurious Fall ◽

Multivariable Regression ◽

Multivariable Regression Models ◽

The Impact ◽

The Relationship

Understanding periods of the year associated with higher risk for falling and less physical activity may guide fall prevention and activity promotion for older adults. We examined the relationship between weather and seasons on falls and physical activity in a three-year cohort of older adults with glaucoma. Participants recorded falls information via monthly calendars and participated in four one-week accelerometer trials (baseline and per study year). Across 240 participants, there were 406 falls recorded over 7569 person-months, of which 163 were injurious (40%). In separate multivariable regression models incorporating generalized estimating equations, temperature, precipitation, and seasons were not significantly associated with the odds of falling, average daily steps, or average daily active minutes. However, every 10 °C increase in average daily temperature was associated with 24% higher odds of a fall being injurious, as opposed to non-injurious (p = 0.04). The odds of an injurious fall occurring outdoors, as opposed to indoors, were greater with higher average temperatures (OR per 10 °C = 1.46, p = 0.03) and with the summer season (OR = 2.69 vs. winter, p = 0.03). Falls and physical activity should be understood as year-round issues for older adults, although the likelihood of injury and the location of fall-related injuries may change with warmer season and temperatures.

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CSR Committees and Their Effect on ESG Performance in UK, France, Germany, and Spain

Sustainability ◽

10.3390/su11185077 ◽

2019 ◽

Vol 11 (18) ◽

pp. 5077 ◽

Cited By ~ 4

Author(s):

Elisa Baraibar-Diez ◽

María D. Odriozola

Keyword(s):

Financial Performance ◽

Reporting Quality ◽

Panel Data Models ◽

Listed Firms ◽

Independent Variables ◽

Social Governance ◽

Multidisciplinary Nature ◽

Governance Models ◽

The Uk ◽

Corporate Social

The multidisciplinary nature of a corporate social responsibility (CSR) committee reflects the commitment as well as the expectations and demands of diverse stakeholders. So far, CSR committees have been mainly considered as variables of control in larger corporate governance models and independent variables that determine CSR or environmental, social, and governance (ESG) disclosure and its reporting quality. However, the effect on corporate performance has been biased to financial performance, so the potential of the analysis of the effect it may have on different facets of non-financial performance has not been exploited. Which it should, since it can be a fundamental tool to achieve sustainability. The objective of this contribution is to test whether companies with a CSR committee not only leads to higher economic scores, but also to higher ESG (environmental, social, governance) scores. To do this, we used regression panel data models in 197 listed firms in Spain, France, Germany, and the UK during the period 2005–2015 including the perspective of European organizations and completing the extant studies in US-based samples. Our results showed that 90% of companies in the sample had a CSR committee in 2014, and that those companies had significantly different ESG scores than those without a CSR committee. Having a CSR committee also triggered better non-financial performance when considering the four scores and the four countries independently (except for the economic scores in Spain). These results have great implications for practitioners, reflecting the importance of promoting these tools in an organization to enhance non-financial performance and sustainability.

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