scholarly journals Corporate Social Responsibility Disclosure and Stock Price Crash Risk: Evidence from China

2019 ◽  
Vol 11 (2) ◽  
pp. 448 ◽  
Author(s):  
Jingwen Dai ◽  
Chao Lu ◽  
Jipeng Qi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Information Disclosure ◽  
Stock Price ◽  
Crash Risk ◽  
Significant Difference ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

We take Chinese A-share listed companies in years 2010–2015 as a sample to examine the relationship between Corporate Social Responsibility (CSR) information disclosure and stock price crash risk using the fixed effect model. The results show that: (1) There is an inverted U-shaped nonlinear relationship between CSR information disclosure and stock price crash risk. That is, as the CSR information disclosure level increases, the CSR information disclosure first aggravates and then reduces the stock price crash risk; (2) under different disclosure motives, there is a significant difference in the impact of CSR information disclosure on stock price crash risk. There is still an inverted U-shaped relationship between mandatory CSR information disclosure and stock price crash risk, but not for the semi-mandatory and voluntary disclosure; (3) the academic independent director has a positive adjustment effect on the relationship between CSR information disclosure and stock price crash risk, while the institutional investor has a negative adjustment effect on the relationship between CSR information disclosure and stock price crash risk. The research is of great significance for promoting the fulfillment of CSR, improving corporate governance and stabilizing the capital market.

scholarly journals How Do Corporate Social Responsibility and Corporate Governance Affect Stock Price Crash Risk?

2020 ◽  
Vol 13 (2) ◽  
pp. 30 ◽  
Author(s):  
Ahmed Imran Hunjra ◽  
Rashid Mehmood ◽  
Tahar Tayachi
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Price ◽  
Negative Impact ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Crash Risk ◽  
Corporate Social ◽  
The Impact

We investigate the impact of corporate social responsibility (CSR) and corporate governance on stock price crash risk in manufacturing sector of India and Pakistan. We collect data of nine years from 2010 to 2018 from DataStream of 353 manufacturing firms. We apply the Generalized Method of Moments (GMM) to the analysis of the data. We find that when firms actively engage in CSR activities, they lead to reduced stock price crash risk. We further find that managerial ownership has a significant positive impact on stock price crash risk, while board size and CEO duality show a significant and negative impact on stock price crash risk.

Corporate social responsibility and stock price crash risk

2016 ◽  
Vol 42 (10) ◽  
pp. 963-979 ◽  
Author(s):  
Ming-Te Lee
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Price ◽  
Crash Risk ◽  
Least Squares Regression ◽  
Content Type ◽  
Empirical Results ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to test opposing views of the relationship between corporate social responsibility (CSR) and stock price crash risk in a major Asian emerging stock market. Design/methodology/approach This paper suggests an endogenous relationship between CSR and stock price crash risk. Hence, this paper uses two-stage least squares regression analysis to address the bias and inconsistency associated with endogeneity issues. Moreover, previous studies argue that the level of effectiveness of corporate governance significantly affects firm-specific stock price crash risk. Thus, this paper further divides the overall sample into two sub-samples according to the median of the corporate governance index. Furthermore, this paper investigates the impact of CSR on stock price crash risk under corporate governance. Findings The empirical results show that CSR significantly mitigates Taiwanese stock price crash risk. This finding is consistent with the notion that socially responsible Taiwanese firms commit to a higher standard of transparency and engage in less bad news hoarding, thus reducing crash risk. The empirical results also show that CSR has a more pronounced effect in mitigating crash risk for Taiwanese firms with less effective corporate governance. Originality/value The study findings indicate that CSR plays a more important role in reducing crash risk for Taiwanese firms with weak governance mechanisms.

scholarly journals Corporate Social Responsibility and Insider Trading: Evidence from China

2018 ◽  
Vol 10 (9) ◽  
pp. 3163 ◽  
Author(s):  
Chao Lu ◽  
Xuetong Zhao ◽  
Jingwen Dai
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Insider Trading ◽  
Internal Control ◽  
Voluntary Disclosure ◽  
Financial Information ◽  
Mandatory Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Corporate Social Responsibility (CSR) is the obligation of a company to pursue long-term goals, and is an important part of a sustainable society. It is related not only to the survival and sustainable development of the company, but also to the expectations of the public. CSR is an important way for companies to disclose non-financial information. Information disclosure can alleviate information asymmetry effectively, improve the quality of internal control, and affect the occurrence of insider trading. However, the existing research has paid less attention to the impact of non-financial information on CSR and insider trading, as well as the impact of the corporate nature and disclosure motivation on this relationship. This paper takes China’s 2011–2016 Shanghai and Shenzhen A-share listed companies as a sample to study the relationship between CSR and insider trading. The results show the following. (1) CSR and insider trading have a significant negative correlation. (2) From the perspective of the nature of the enterprise, the CSR of non-state-owned enterprises can significantly suppress the occurrence of insider trading, while the relationship is not significant for state-owned enterprises. (3) From the perspective of disclosure motivation, voluntary disclosure can significantly suppress the occurrence of insider trading. However, mandatory disclosure and semi-mandatory disclosure are not significant. The research in this paper is of great significance to encourage enterprises to fulfill their social responsibilities and improve the supervision of illegal insider trading.

Information Disclosure, Social Responsibility, Trust, and Attitude Affect Loyalty to Housing Agents

2016 ◽  
Vol 44 (5) ◽  
pp. 717-726 ◽  
Author(s):  
Chun-Chang Lee ◽  
Yun-Ling Wu ◽  
Wen-Hsin Huang ◽  
Yu-Chen Lee ◽  
Pei-Ru Chen ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Structural Equation Model ◽  
Information Disclosure ◽  
Structural Equation ◽  
Equation Model ◽  
Structural Relationships ◽  
Indirect Impact ◽  
Corporate Social ◽  
The Impact

We applied a linear structural equation model to explore the impact of information disclosure, social responsibility, trust, and attitude on consumers' loyalty to housing agents. Participants were 466 consumers and potential consumers of housing agency industry services, who completed a survey assessing the variables of interest. Results showed that information disclosure had a direct and significant impact on trust, and an indirect impact on trust through the mediator of corporate social responsibility (CSR), and that trust had an indirect and significant impact on loyalty through the mediator of attitude. The structural relationships among information disclosure, CSR, trust, and attitude should be acknowledged when discussing consumers' loyalty to housing agents.

Impact of corporate social responsibility (CSR) awareness, affordability and management system sophistication on CSR performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anura De Zoysa ◽  
Nobyuki Takaoka ◽  
Yuqian Zhang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Management System ◽  
Structural Equation ◽  
Critical Role ◽  
Content Type ◽  
Japanese Firms ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

PurposeThis paper aims to examine the impact of three key factors — corporate social responsibility (CSR) awareness, CSR affordability and CSR management system (CSRMS) sophistication—on the CSR performance of Japanese firms.Design/methodology/approachUsing responses to 36 items developed on the Global CSR standard of ISO26000, two CSR indexes were constructed to assess the CSR management system sophistication and performance of Japanese firms. The relationship between the three key variables (CSR awareness, affordability and management system sophistication) and CSR performance was then examined through a partial least squares (PLS)-based structural equation model. Data were collected through a questionnaire survey of 146 firms.FindingsThe results of the study found a positive relationship between CSR performance and three exogenous variables (CSR awareness, affordability and management system sophistication). Furthermore, the study found that CSRMS sophistication played a mediating role in the relationship between CSR performance and firms' CSR awareness and affordability.Research limitations/implicationsThe study was limited to examining the CSR practices of a major province in Japan, which may hinder the generalisation of the findings to the rest of the country. Moreover, the data used for assessing the variables in this study were self-reported by the participating firms, in addition to being cross-sectional. The findings of this study clarified areas that policymakers, including Japan's business associations–Keidanren and Keizai Doyukai, and other relevant parties need to focus on for further improving CSR performances of Japanese firms.Originality/valueThis study highlights the role CSR awareness, affordability and CSRMS sophistication play in improving CSR performance. On the one hand, it identifies the critical role CSRMS plays in mediating the relationship among CSR performance, awareness and affordability. On the other hand, it advances CSR theory providing insight for practitioners to generate positive CSR outcomes.

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