scholarly journals Corporate Social Responsibility, Corporate Life Cycle, and Dividend Policy

2020 ◽  
Vol 27 (2) ◽  
pp. 101
Author(s):  
Eman Abdel-Wanis
Keyword(s):  
Corporate Social Responsibility ◽  
Life Cycle ◽  
Social Responsibility ◽  
Growth Stage ◽  
Dividend Policy ◽  
Business Environment ◽  
Life Cycles ◽  
Corporate Life Cycle ◽  
Corporate Social ◽  
The Impact

The aim of this paper is to investigate the impact of corporate social responsibility(CSR) on dividend policy through corporate life cycle (CLC) as a mediator using pathanalysis for 308 firms-observation for 80 non-financial firms during the period from 2014to 2017 using smart PLS (partial least square). This paper explores the impact of the socialresponsibility on the dividends policy and explores the role of each life cycle in this effecton dividends. The results show that firms in their growth stage are positively associatedwith CSR, while firms in stage of decline are less likely to invest in CSR. High CSR firmsmay use dividend policy to reduce the agency problems related to overinvestment in CSR.Results refer to corporate life cycle isn't influenced by dividends. The results show thatcorporate life cycles play an important role in enhance the relationship CSR and dividendpolicy especially in the growth stage in in the Egyptian business environment

scholarly journals Effects of Corporate Life Cycle on Corporate Social Responsibility: Evidence from Korea

2018 ◽  
Vol 10 (10) ◽  
pp. 3794 ◽  
Author(s):  
Woo Lee ◽  
Seung Choi
Keyword(s):  
Corporate Social Responsibility ◽  
Life Cycle ◽  
Social Responsibility ◽  
Growth Stage ◽  
Life Cycle Stage ◽  
Strategic Decisions ◽  
Csr Strategies ◽  
Corporate Life Cycle ◽  
Resource Hypothesis ◽  
Corporate Social

Few studies examine how firms make strategic decisions over time. In this study, we test whether a firm undertakes corporate social responsibility (CSR) activities as a function of its life-cycle stage. Drawing on prior CSR research that finds ethical concerns and opportunistic behavior to be two key motivations that underpin CSR activities, we hypothesize that firms in their growth stage are positively associated with CSR, while firms in stage of decline are less likely to invest in CSR. The empirical findings of our study—derived by leveraging a sample of South Korean listed firms—are consistent with these predictions. We further find that in the growth stage, group-affiliated firms are more engaged in CSR than are unaffiliated firms. Given that affiliated firms can share the resources of other group-member firms, this evidence supports the slack resource hypothesis. Overall, our results indicate that firms have different CSR strategies, depending on their life-cycle stage.

Does corporate social responsibility affect dividend policy? Empirical evidence in the French context

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olfa Ben Salah ◽  
Anis Ben Amar
Keyword(s):  
Corporate Social Responsibility ◽  
Panel Data ◽  
Social Responsibility ◽  
Dividend Policy ◽  
Least Squares Method ◽  
Positive Impact ◽  
Alternative Measure ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to focus on the impact of corporate social responsibility (CSR) on dividend policy in the French context. In addition, the authors seek to determine if the individual components of CSR influence dividend policy. Design/methodology/approach This study uses panel data methodology for a sample of French non-financial firms between 2008 and 2018. Generalized least squares method is used to estimate the models. Findings Using panel data methodology for a sample of 825 observations for the period 2008–2018, this study finds a positive impact of CSR practices on dividend policy. The authors also find that individual components of CSR positively influence dividend policy. To check the robustness of the results, this study further runs a sensitivity tests, including an alternative measure of dividend policy, all of which confirm the findings. Practical implications This study has examined the impact of CSR on dividend policy in France and may have implications for regulatory, investors, analysts and academics. First, the involvement in CSR best practices encourages companies to pay more dividends to investors. Therefore, investors are more motivated to invest in socially responsible firms than socially irresponsible firms. Second, given the association of CSR with the quality of accounting information and financial markets, regulators should step up recommendations relating to the different societal dimensions of CSR. Originality/value While little previous work has focused on the causal link between CSR and dividend policy, this research is the first, to the authors’ knowledge, to have looked at the impact of CSR on dividend policy in France.

scholarly journals Conceptual Framework Performance Contributor from Internal Organizations of Corporate Social Responsibility Activities

2021 ◽  
Vol 2 (1) ◽  
pp. 67
Author(s):  
Gogor Arif Handiwibowo ◽  
Rini Puji Astuti ◽  
Rita Ambarwati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Conceptual Framework ◽  
Environmental Sustainability ◽  
Business Environment ◽  
Business Organizations ◽  
Performance Factors ◽  
For Profit ◽  
Corporate Social ◽  
The Impact

In this 20th century era, the business environment is more demanding that a business organization not only have a profit orientation. However, aspects of the impact on the environment and surrounding communities must also receive adequate attention in line with the increasing quantity and quality of business organizations. The concept of sustainable development is proposed to be a concept that tries to provide a balanced effect between financial performance factors, community welfare factors and environmental sustainability factors. In balancing the three factors above, CSR (Corporate Social Responsibility) activities of business organizations are expected to be the answer to the stigma that business organizations are only looking for profit. This paper will describe several hypotheses as well as a conceptual framework of factors originating from internal business organizations that have an impact on the performance of CSR activities. There are four factors that are proposed to be a hypothesis from the internal organization that must be fulfilled so that CSR activities show their performance. The four factors are fulfilment of human resources, fulfilment of the business organization's strategic vision, fulfilment of operating system implementation, and fulfilment of the business organization's financial capability.

Corporate social responsibility and firm’s performance: empirical evidence

2017 ◽  
Vol 13 (2) ◽  
pp. 390-406 ◽  
Author(s):  
Samuel Famiyeh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Business Environment ◽  
Equation Modeling ◽  
Competitive Performance ◽  
Content Type ◽  
Operational Capabilities ◽  
Overall Performance ◽  
Corporate Social ◽  
The Impact

Purpose The concept of corporate social responsibility (CSR) has emerged over the past 30 years to occupy a significant role in certain aspects of the organizational theory. The purpose of this paper is to examine the impact of CSR and firm’s operational competitive performance in terms of cost, quality, flexibility and delivery, as well as the overall performance, from a developing country’s environment. Design/methodology/approach Structural equation modeling was used to study the relationship between CSR, competitive operational capabilities and the overall organizational performance using a survey of informants. Findings Using data from firms in Ghana, the work demonstrates that CSR initiative by firms will have a positive relationship with firm’s operational competitive performance in terms of cost, quality, flexibility and delivery performance, as well as overall performance. Furthermore, the study demonstrates that competitive operational capabilities in terms of cost and flexibility will lead to firms’ overall performance from the Ghanaian business environment, whereas delivery and quality seems to have no positive effect on overall performance. Research limitations/implications The results indicate the relevance and the implications of CSR initiatives on firms’ performance in a developing country such as Ghana. Specifically, the results indicate that when organizations invest in CSR initiatives, they are likely to achieve cost reductions, improved quality, flexibility, improved delivery and overall performance. Practical implications The research shows how CSR initiatives can enhance firm’s operational competitive performance and overall performance. Originality/value The work illustrates and provides some insights and builds on the literature in the area of CSR in a developing country’s environment.

scholarly journals Board characteristics and corporate social responsibility disclosure in the Jordanian banks

2016 ◽  
Vol 12 (1-1) ◽  
pp. 84-100 ◽  
Author(s):  
Mohammad Ahid Ghabayen ◽  
Nor Raihan Mohamad ◽  
Norsiah Ahmad
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Business Environment ◽  
Low Level ◽  
Board Characteristics ◽  
Corporate Social Responsibility Disclosure ◽  
Female Director ◽  
Corporate Social ◽  
The Impact

This paper aims to examine the impact of board characteristics on the level of corporate social responsibility disclosure (CSRD) in the Jordanian banking sector for a sample of 147 banks/years during a period of 10 years (2004-2013). A checklist consisting of 100 items is developed to measure the disclosure level and the result indicates a relatively low level of disclosure in Jordanian banks. Multiple regression analysis is employed to examine the developed hypotheses. The results indicated that the larger board size and higher level of disclosure are correlated. However, low level of disclosure is associated to higher proportion of independent directors and institutional directors. In addition, female director is found to negatively affect the level of disclosure. This study has filled some of the previous studies’ gaps; the study is conducted in a new business environment. Besides, previous CSRD’s studies have not considered some of the board characteristics such as institutional directors. Thus this study investigates their impacts on the level of CSRD. In addition, this study provides some guidelines for the future works. Furthermore, the findings of this study might be interested to several groups of shareholders and stakeholders such as government, regulators, potential investors and CSR agencies.

Does corporate social responsibility extend firm life-cycles?

2018 ◽  
Vol 56 (11) ◽  
pp. 2408-2436 ◽  
Author(s):  
Feng Jui Hsu
Keyword(s):  
Corporate Social Responsibility ◽  
Life Cycle ◽  
Social Responsibility ◽  
Cash Flow ◽  
Cash Holdings ◽  
Life Cycles ◽  
Content Type ◽  
Firm Life Cycle ◽  
Hump Shape ◽  
Corporate Social

Purpose The purpose of this paper is to assess US-based firms from 2005 to 2015 to determine whether firms with better corporate social responsibility (CSR) performance will allocate capital through their life-cycle to better maintain or extend total assets. Design/methodology/approach Kinder, Lydenberg, Domini Research & Analytics social performance rating scores were used to measure CSR performance in an initial sample of 19,707 firm-year observations. Firms are first classified into stages including introduction, growth, maturity, and decline, and use multiclass linear discriminant analysis, the Dickinson classification scheme (Dickinson, 2011), and the ratio of retained earnings to total assets (RETA) as life-cycle proxies. Life-cycle was formulated based on a broad set of accounting data sourced from Compustat. Various corporate characteristics from the CRSP database were used to classify all sample firms into five equal groups based on their CSR performance. Findings A firm’s equity and debt issuance assume a hump shape over the life-cycle under CSR practice, and higher-CSR firms face fewer significant issues as they mature; payout, RETA, and free cash flow decreased from high-CSR performance firms to low-CSR performance firms; and cash holdings also exhibit a hump shape over the life-cycle and higher-CSR practices are associated with significantly lower cash holdings. Originality/value CSR performance is a useful predictor for forecasting firm life-cycle and superior CSR performance ensures efficient capital allocation throughout firm life-cycle. Furthermore, CSR practice is an indicator of firm life-cycle sustainability and indicates a firm’s future cash flow patterns.

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