scholarly journals The Effectiveness of Internal Control and Corporate Social Responsibility: Evidence from Chinese Capital Market

2018 ◽  
Vol 10 (11) ◽  
pp. 4006 ◽  
Author(s):  
Xiao Li ◽  
Chunmei Zheng ◽  
Gang Liu ◽  
Muhammad Sial
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Internal Control ◽  
Economic Transition ◽  
Transition Period ◽  
Practical Importance ◽  
Principal Agent ◽  
Positive Role ◽  
Corporate Social

From the perspective of the effectiveness of internal control, according to the Stakeholder Theory, Principal-Agent Theory and Reputation Theory, this paper analyzes comparatively the influences of internal control on the assumption of corporate social responsibility (SCPS) from the accrual basis, and the fulfillment of corporate social responsibility (CSRF) from the cash flow system respectively. Using a sample of 1767 firms listed in China between 2011 and 2016, we find that effective internal control has significantly promoted enterprises to assume social responsibilities. Meanwhile, effective internal control substantially improves the fulfillment of corporate social responsibility. This study overcomes the current situation that the two concepts of assumption and fulfillment of corporate social responsibility have not been distinguished in previous literature. We suggest that, in the economic transition period, the positive role of internal control in corporate governance should be promoted to protect the legitimate rights and interests of stakeholders; the adverse impact of the principal-agent relationship between shareholders and management on corporate governance should be avoided, building high-quality internal control; enterprises achieve steady and sustainable development process by the positive reputation value and robust external monitoring mechanism. This research is of practical importance to strengthen the subsequent construction of the internal control system and the long-term practice of corporate social responsibility.

scholarly journals Impacts of Firm Performance on Corporate Social Responsibility Practices: The Mediation Role of Corporate Governance in Ethiopia Corporate Business

2021 ◽  
Vol 13 (17) ◽  
pp. 9717
Author(s):  
Ma Ying ◽  
Gashaw Awoke Tikuye ◽  
He Shan
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Structural Equation ◽  
Business Models ◽  
Amhara Region ◽  
Positive Role ◽  
Corporate Social ◽  
Corporate Business

In today’s globalized economy, the corporate company faces ever-increasing competitive and social pressures. This paper aims to identify the impacts of firms’ performance on corporate social responsibility practices using the mediating roles of corporate governance evidence from Ethiopia’s corporate business. The impacts of firms’ performance on CSR and corporate governance as a mediator variable were studied using a sample of TIRET corporate companies, in the Amhara region, Ethiopia. The structural equation model and multiple regression analysis were estimated and tested using 21 corporate companies. The derived model reveals how corporate governance mediates the favorable relationship between CSR and firm performance. The result indicates that a firm’s performance is the most significant influencing factor on CSR among the impacts examined in this study. Corporate governance has a positive role in serving as a legitimacy source for CSR practice. This study discusses the significance of results-based resource theory and presents the conclusion and implications. To solve the gaps in firm performance, return on asset, debts on capital structure, and governance, the corporate firms should identify unproductive enterprises and outsource non-core values. To overcome the existed inefficiency difficulties, this study proposed that corporate enterprises should be restructured, rebranded, reconsider their business models, and acquire technology-based firms. This paper contributes to CSR literature in the context of emerging economies. Firms, policymakers, and practitioners may take steps to improve CSR practice. In general, we conclude that in Ethiopia, including in the Amhara region, socially responsible corporate enterprises are more likely to be successful, and vice versa.

scholarly journals Corporate governance systems and sustainability: CSR as a factor of convergence between outsider and insider systems

2016 ◽  
Vol 14 (1) ◽  
pp. 139-150 ◽  
Author(s):  
Daniela M. Salvioni ◽  
Simona Franzoni ◽  
Francesca Gennari
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Internal Control ◽  
Capital Mobility ◽  
Social Risk ◽  
Governance Systems ◽  
Sustainable Value ◽  
Corporate Social ◽  
And Control

In an era of increasing capital mobility and globalisation, the growing integration of financial markets seems to be a key factor of corporate governance convergence. One of the most striking differences between corporate governance systems of different countries is the dissimilarity in the firms’ ownership and control that exists across countries. According to the degree of ownership and control, corporate governance systems can be distinguished in outsider systems (characterised by wide dispersed ownership) and insider systems (characterised by concentrated ownership). The transition from a governance approach founded on the shareholder view and oriented to the optimization of economic performance to a policy founded on the stakeholder view and oriented to the appreciation of the interdependence among economic, social and environmental responsibility, seems to be a factor of de facto convergence between outsider and insider systems of corporate governance. The main finding of this chapter is that the effective integration of CSR, sustainability and leadership makes easier the convergence between insider and outsider corporate governance systems. Leadership starts at board level. Corporate social responsibility (CSR) and sustainability require good corporate governance, grounded on stakeholder engagement, fairness, transparency and accountability. All these principles are related with more externally focused boards and determine a governance approach directed to the growth of sustainable value. In light of the above, this chapter will consider how the social responsibility and the role of the leaders (CEOs, Board of Directors, managers, etc.) can determine a governance approach directed to the growth of sustainable value over time. This is possible through the exploitation of opportunities and the economic and social risk management with which the companies should compete. The achievement of sustainability leadership requires significant changes in the operational guidelines and critical factors for company’s success and it imposes the improvement of the internal control systems intended to provide essential support for responsible governance. Therefore, leadership aiming at sustainability (regardless of the corporate governance system) requires CSR to be transferred from top management to the entire organisation, increasing the ability to manage complexity with respect to articulated goals. So, the corporate social responsibility, if properly realized, tends to be a factor of substantial convergence between the different existing systems of corporate governance.

IMPLEMENTASI KINERJA KEUANGAN TERHADAP NILAI SPIRITUALITAS PRIBADI

2012 ◽  
Vol 16 (3) ◽  
pp. 332
Author(s):  
Whedy Prasetyo
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Annual Report ◽  
Main Concern ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
The Relationship ◽  
Personal Spirituality

Development of financial performance in the application of Good Corporate Governance and Corporate Social Responsibility which affects the values of honesty private individuals, in order to be able to run the accountability, value for money, fairness in financial management, transparency, control, and free of conflicts of interest (independence). The main concern in this study is focused on achieving value personal spirituality through the financial performance and capabilities of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) in moderating the relationship with the financial performance of value personal spirituality. This study is a descriptive verifikatif. The unit of analysis in this study was 15 companies in Indonesia with a policy that has been applied through the concept since January of 2008 until now, with the support of the annual report of the company, the company's financial statements, company reports to the disclosure of Good Corporate Governance and Corporate Social Responsibility in the annual report. Overall reports published successively during the years 2008-2011. The results of this study indicate financial performance affects the value of personal spirituality, and for variable GCG obtained results that could moderate the relationship of financial performance to the value of personal spirituality. But for the disclosure of CSR variables obtained results can’t moderate the relationship with the financial performance of personal spirituality.

scholarly journals CSR Disclosure on Earnings Management with the Presence of Women in the GCG Structure

2020 ◽  
Vol 15 (2) ◽  
pp. 293
Author(s):  
Alit Wahyuningsih ◽  
Ni Ketut Rasmini
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Purposive Sampling ◽  
Good Corporate Governance ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Sustainability Report

ABSTRAK Penelitian ini bertujuan untuk memperoleh bukti empiris mengenai pengaruh pengungkapan Corporate Social Responsibility pada manajemen laba dengan keberadaan wanita dalam mekanisme Good Corporate Governance sebagai variabel moderasi. Metode penentuan sampel yang digunakan adalah purposive sampling dengan kriteria perusahaan yang terdaftar dalam indeks LQ45 di Bursa Efek Indonesia dan menerbitkan laporan tahunan serta laporan keberlanjutan (sustainability report) berturut-turut selama periode 2013-2017. Jumlah sampel yang digunakan dalam penelitian ini sebanyak 40 sampel. Metode dokumentasi digunakan untuk mengumpulkan data. Teknik analisis data yang digunakan yaitu Moderated Regression Analysis. Penelitian ini menyimpulkan bahwa pengungkapan Corporate Social Responsibility berpengaruh positif pada manajemen laba. Keberadaan wanita dalam komite audit yang mewakili proksi dari variabel keberadaan wanita dalam mekanisme Good Corporate Governance mampu memperlemah pengaruh pengungkapan Corporate Social Responsibility pada manajemen laba. Hasil penelitian ini sejalan dengan teori hipotesis biaya politik yang menyatakan bahwa perusahaan yang memiliki biaya politik yang tinggi cenderung akan melakukan manajemen laba. Kata Kunci: manajemen laba, pengungkapan corporate social responsibility, good corporate governance

Corporate governance, corporate social responsibility and corporate performance

2010 ◽  
Vol 16 (5) ◽  
pp. 641-655 ◽  
Author(s):  
Chi-Jui Huang
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Positive Impact ◽  
Social Performance ◽  
Outside Directors ◽  
Asian Economy ◽  
Corporate Social

AbstractPrevious research has analyzed and debated corporate governance (CG) and corporate social responsibility (CSR) independently. This paper aims to empirically explore the interrelationship between CG, CSR, financial performance (FP) and Corporate Social Performance (CSP) using a sample of 297 electronics companies operating in Taiwan, a newly industrialized Asian economy. The results show that a CG model which includes independent outside directors and which has specific ownership characteristics has a significantly positive impact on both FP and CSP, whereas FP itself does not influence CSP. The presence of independent outside directors in the firm has the greatest impact on the social performance of the firm's worker, customer, supplier, community and society dimensions. Government shareholders enhance a firm's social performance extraordinarily because government shareholders will be more likely to request that companies fulfill their social responsibilities. Only government shareholders positively and significantly relate to a firm's environmental performance. Furthermore, foreign institutional stockholders help to increase worker and supplier performance by paying more attention to employee policies and supply chain relationships. Finally, independent outside directors, foreign institutional stockholders and domestic financial institutional stockholders are shown to improve financial performance.

Faktor-Faktor Yang Mempengaruhi Tax Avoidance Dengan Profitabilitas Sebagai Varibel Intervening

IJAcc ◽  
2020 ◽  
Vol 1 (2) ◽  
pp. 120-131
Author(s):  
Imam Aji Santoso ◽  
Hendriyati Haryani ◽  
Wyne Febrianti
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Good Corporate Governance ◽  
Corporate Social

Penelitian ini bertujuan untuk mendapatkan bukti empiris dan rasional mengenai pengaruh pengungkapan corporate social responsibility (CSR), good corporate governance (GCG), dan karakteristik perusahaan terhadap tax avoidance dengan profitabilitas sebagai variabel intervening, pada perusahaan sektor industri dasar dan kimia yang terdaftar di Bursa Efek Indonesia. Metode yang digunakan dalam penelitian ini adalah metode analisis regresi linier berganda dengan bantuan smart PLS. Penelitian ini didasari dari penelitian yang sudah dilakukan sebelumnya. Penelitaan ini lakukan untuk mengetahui apakah hasil penelitian terdahulu dengan penelitian sekarang masih sama atau beda. Hasil penelitian menunjukan bahwa secara simultan, variabel corporate social responsibility, good corporate governance, dan karakteristik perusahaan terhadap tax avoidance dengan profitabilatas sebagai variabel intervening, berpengaruh signifikan dan positif. Peneliti disini menemukan beberapa perbedaan hasil dengan peneliti yang terdahulu atau sebelumnya, Hasil penelitian ini diharapkan dapat dimanfaatkan oleh pembaca sebagaimana semestinya. Bahkan bisa dilakukan penelitian lebih lanjut atas hasil yang sudah saya teliti.

Do Negative Corporate Social Responsibility Events Signal Financial Misreporting? — Empirical Finding from Taiwan

2021 ◽  
Vol 24 (01) ◽  
pp. 2150004
Author(s):  
Ching-Lung Chen ◽  
Hann-Pyng Wang ◽  
Hung-Shu Fan ◽  
Shiu-Chieh Chiu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Cash Flow ◽  
Financial Reporting ◽  
Internal Control ◽  
Empirical Finding ◽  
Internal Controls ◽  
Control Rights ◽  
Cash Flow Rights ◽  
Corporate Social

This study examines whether negative corporate social responsibility events (NCSRs) signal potential firm misreporting and pending financial reporting restatements. Without formal opinions on the effectiveness of internal controls over financial reporting in Taiwan, we hypothesize NCSRs can represent and/or signal a firm’s internal control weakness, which may in turn result in poor financial reporting. Note that the concern with controlling owners expropriating wealth through ineffective internal controls is given important weight by investors and regulators. We further examine whether the signaling function of NCSRs is more pronounced in contexts with a serious agency problem, such as is found in the high divergence of control and cash flow rights case (denoted as high excess control rights) in Taiwan. Empirical results indicate that, as conjectured, incidence of NCSRs is positively associated with the likelihood of reporting restatements. Further evidence reveals that this result is particularly pronounced in the high divergence of control and cash-flow rights subsample test. We demonstrate several diagnostic tests and show the results are robust in various specifications.

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