scholarly journals Corporate Social Responsibility and Financial Performance: A Quantile Regression Approach

2019 ◽  
Vol 11 (13) ◽  
pp. 3717 ◽  
Author(s):  
Nana Liu ◽  
Chuanzhe Liu ◽  
Quan Guo ◽  
Bowen Da ◽  
Linna Guan ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Quantile Regression ◽  
Information Disclosure ◽  
Financial Constraints ◽  
Listed Firms ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
A Share

A prominent claim within the literature is that corporate social responsibility-disclosured firms are fundamentally more resilient to financial shocks, relative to firms that take no corporate social responsibility action. To test this, we examine the impact of corporate social responsibility (CSR) information disclosure on financial constraints (FC). Our sample is composed of A-share publicly listed firms from Shanghai and Shenzhen in China during 2013–2017. We find that CSR disclosure influences negatively financial constraints. The quantile regression results also indicate that the influences would more obvious when a company faces stronger financial constraints. Further, CSR disclosure influences negatively financial constraints in financially opaque firms, and the effect of financial opaque on the relationship strengthens when the company faces great financial constraints. After considering the problems of missing variables and endogenous, changing the level of CSR and FC measurement, using 2SLS and two-step GMM methods, the conclusion is still robust. However, the results should not be generalized, since the sample was based on 434 A-share publicly listed firms for 2013–2017. From the perspective of FC, this study contributes to the literature in the field of CSR and expands the empirical research on the economic consequences of CSR. It also can encourage enterprises to voluntarily disclose social responsibility information and it is of great significance to promote the stable development of the capital market and society.

scholarly journals Can Environmental Corporate Social Responsibility Reduce Firms’ Idiosyncratic Risk? Evidence From China

2020 ◽  
Vol 8 ◽  
Author(s):  
Xiaoran Kong ◽  
Yuying Pan ◽  
Huaping Sun ◽  
Farhad Taghizadeh-Hesary
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Internal Control ◽  
Idiosyncratic Risk ◽  
Listed Firms ◽  
External Monitoring ◽  
Corporate Social ◽  
The Impact ◽  
A Share

Environmental corporate social responsibility (ECSR) can be a strategy to increase the transparency of investment information effectively to alleviate information asymmetry. The purpose of this article is to examine the impact of ECSR on firms’ idiosyncratic risk. Using the data of A-share listed firms in China and data of Rankins CSR Ratings by developing econometrics models, this study documents that ECSR can significantly reduce the firms’ idiosyncratic risk. This result perpetuates after a series of robustness checks. Besides, the results of conditional analyses reveal that the effect of ECSR is more pronounced for state-owned firms and firms with weaker external monitoring mechanisms and low internal control. Moreover, further evidence suggests that firms with high ECSR show a greater tendency to disclose more information, which reduces the information asymmetry and offers linkages from ESCR to firms’ idiosyncratic risk.

scholarly journals Corporate Social Responsibility Information Disclosure and Corporate Fraud—“Risk Reduction” Effect or “Window Dressing” Effect?

2019 ◽  
Vol 11 (4) ◽  
pp. 1141 ◽  
Author(s):  
Haifeng Hu ◽  
Bin Dou ◽  
Aiping Wang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Risk Reduction ◽  
Information Disclosure ◽  
Lower Probability ◽  
Corporate Fraud ◽  
Window Dressing ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

We examine the impact in Chinese capital markets of publishing information on corporate fraud in a corporate social responsibility (CSR) report. We develop and test two competing hypotheses of “risk reduction” and “window dressing”. Based on the listed company’s CSR report, we analyze the effect of CSR disclosure on the commission of corporate fraud, fraud detection and the severity of corporate fraud. The research results show that after controlling for the firms’ characteristics and corporate governance factors, the CSR report’s information disclosures have a significantly negative relation to corporate fraud. Specifically, the CSR report’s publication reduces the information asymmetry between the insiders and the stakeholders, thus decreasing the tendency to commit fraud. Our findings support the risk reduction hypothesis but not the window dressing hypothesis. Further research shows that firms with a good CSR disclosure practice have a lower probability of committing corporate fraud and have fewer types of fraud violations, thereby mitigating the severity of corporate fraud.

A Comparison of CSR Disclosure Guidelines and a Self-Prepared CSR Disclosure Index- A Study of Select Automotive Companies

2015 ◽  
Vol 4 (2) ◽  
Author(s):  
N.K. Gupta ◽  
Shilki Bhatia
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Economic Environment ◽  
Global Reporting Initiative ◽  
The Social ◽  
Regulatory Bodies ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
Voluntary Guidelines

In India, corporate social responsibility and its disclosure got attention during the eighties and have been gaining importance with time in present economic environment, especially after adoption of liberalization, privatization, and globalization (LPG) (Goswami, 2011). Guidelines, principles, and codes are being developed by various regulatory bodies in India and across the globe to increase transparency and accountability about both a companys daily operations and the impact of these operations on society (Tran, 2014) In this paper, the author has studied the CSR guidelines laid down by Global Reporting Initiative G3.1 (GRI-G-3) and The National Voluntary Guidelines by Ministry of Corporate Affairs (NVG-MCA) and has compared them with a self-composed CSR Disclosure Index (CSRDI). The social responsibility initiatives taken by select Indian Automotive Companies have been analyzed and the companies have been rated as per the disclosures made by them. The main focus of the research is to compare the CSR Rankings of companies as per CSRDI with the companies rankings as per GRI-G-3 and NVG-MCA. It was observed that out of 30 sensex companies, Maruti Suzuki and TATA Motors have been the pioneers in contribution towards CSR initiatives. The top five rated companies were TATA Motors, Maruti Suzuki, Mahindra and Mahindra, Hero Motocorp, Bajaj Auto, and Apollo Tyres.

scholarly journals Corporate Social Responsibility Disclosure: Responding to Investors’ Criticism on Social Media

2021 ◽  
Vol 18 (14) ◽  
pp. 7396
Author(s):  
Yuming Zhang ◽  
Fan Yang
Keyword(s):  
Social Media ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Issues ◽  
Media Criticism ◽  
Csr Communication ◽  
Depth Analysis ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

Companies use corporate social responsibility (CSR) disclosures to communicate their social and environmental policies, practices, and performance to stakeholders. Although the determinants and outcomes of CSR activities are well understood, we know little about how companies use CSR communication to manage a crisis. The few relevant CSR studies have focused on the pressure on corporations exerted by governments, customers, the media, or the public. Although investors have a significant influence on firm value, this stakeholder group has been neglected in research on CSR disclosure. Grounded in legitimacy theory and agency theory, this study uses a sample of Chinese public companies listed on the Shanghai Stock Exchange to investigate CSR disclosure in response to social media criticism posted by investors. The empirical findings show that investors’ social media criticism not only motivates companies to disclose their CSR activities but also increases the substantiveness of their CSR reports, demonstrating that companies’ CSR communication in response to a crisis is substantive rather than merely symbolic. We also find that the impact of social media criticism on CSR disclosure is heterogeneous. Non-state-owned enterprises, companies in regions with high levels of environmental regulations, and companies in regions with local government concern about social issues are most likely to disclose CSR information and report substantive CSR activities. We provide an in-depth analysis of corporate CSR strategies for crisis management and show that crises initiated by investors on social media provide opportunities for corporations to improve their CSR engagement.

Comparative analysis of QISMUT+3’s Islamic corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Agung Nur Probohudono ◽  
Astri Nugraheni ◽  
An Nurrahmawati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Statistical Testing ◽  
Content Type ◽  
Islamic Bank ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
Positive Effect

Purpose The purpose of this study is to analyze the impact of corporate social responsibility (CSR) disclosure on the financial performance of Islamic banks across nine countries as major markets that contribute to international Islamic bank assets (Indonesia, Malaysia, Saudi Arabia, UAE, Kuwait, Qatar, Turkey, Bahrain and Pakistan or further will be called QISMUT + 3 countries). Design/methodology/approach Islamic Social Reporting Disclosure Index (ISRDI) is being used as a benchmark for Islamic bank CSR performance that contains a compilation of CSR standard items specified by the Accounting and Auditing Organization for Islamic Financial Institutions. The secondary data is collected from the respective bank’s annual reports and it used the regression analysis techniques for statistical testing. Findings This study found that CSR disclosure measured by ISRDI has a positive effect on financial performance. Almost all ISRDI sub-major categories have a positive effect on financial performance except the “environment” subcategory. The highest major subcategory for ISRDI is the “corporate governance” category (82%) and the “environment” category (13%) is the lowest. For the UAE, Kuwait and Turkey, the ISRDI is positively affected by financial performance and the other countries on this research are not. Originality/value This study highlighted the economic benefits of social responsibility practices as a part of business ethics in nine countries that uphold the value of religiosity. Thus, the development of the results of this research for subsequent research is very wide open.

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.

scholarly journals Board and corporate social responsibility disclosure of multinational corporations

2019 ◽  
Vol 27 (1) ◽  
pp. 77-98 ◽  
Author(s):  
Hanh Thi Song Pham ◽  
Hien Thi Tran
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Multinational Corporations ◽  
Board Independence ◽  
Content Type ◽  
Csr Reporting ◽  
The One ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

Purpose This paper aims to investigate the effects of board model and board independence on corporate social responsibility (CSR) disclosure of multinational corporations (MNCs). Design/methodology/approach The authors developed an empirical model in which CSR disclosure is the dependent variable and board model (two-tier vs one-tier), board independence (a proportion of independent directors on a board) and the interaction variable of board model and board independence together with several variables conventionally used as control variables are independent variables. The authors collated the panel dataset of 244 Fortune World’s Most Admired (FWMA) corporations from 2005 to 2011 of which 117 MNCs use the one-tier board model, and 127 MNCs use the two-tier board model from 20 countries. They used the random-effect regression method to estimate the empirical models with the data they collated and also ran regressions on the alternative models for robustness check. Findings The authors found a significantly positive effect of a board model on CSR disclosure by MNCs. Two-tier MNCs tend to reveal more CSR information than one-tier MNCs. The results also confirm the significant moderating impact of board model on the effect of board independence on CSR disclosure. The effect of board independence on CSR disclosure in the two-tier board MNCs tends to be higher than that in the one-tier board MNCs. The results do not support the effect of board independence on CSR disclosure in general for all types of firms (one-tier and two-tier board). The impact of board independence on CSR disclosure is only significant in two-tier board MNCs and insignificant in one-tier board MNCs. Practical implications The authors advise the MNCs who wish to improve CSR reporting and transparency to consider the usage of two-tier board model and use a higher number of outside directors on board. They note that once a firm uses one-tier model, number of IDs on a board does not matter to the level of CSR disclosure. They advise regulators to enforce an application of two-tier board model to improve CSR reporting and transparency in MNCs. The authors also recommend regulators to continue mandating publicly traded companies to include more external members on their boards, especially for the two-tier board MNCs. Originality/value This paper is the first that investigates the role of board model on CSR disclosure of MNCs.

scholarly journals Pengaruh Corporate Social Responsibility (CSR) Pada Market Value Added (MVA) Perusahaan Manufaktur Dan Pertambangan

2016 ◽  
Vol 6 (2) ◽  
Author(s):  
Rezi Setin Novian ◽  
Santi Novita
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Disclosure ◽  
Value Added ◽  
Market Value ◽  
Social Aspects ◽  
Market Value Added ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Positive Effect

Along with the increase of information disclosure needs by stakeholder, the companies are not only demanded to be responsible for merely economic aspect but also environmental and social aspects. The objective of this research to provide the evidence of the effect of Corporate Social Responsibility (CSR) disclosure to the companies performance using Market Value Added (MVA). The research is using manufacturing and mining companies that listed in Bursa Efek Indonesia (BEI) from the year 2007 to 2011 as samples. The hypothesis was tested using t test and the result of this study is Corporate Social Responsibility (CSR) has positive effect on Market Value Added (MVA).

Does mandatory corporate social responsibility disclosure affect share price responses to earnings announcements? Evidence from China

2021 ◽  
Author(s):  
Peixin Wang ◽  
Haijie Huang ◽  
Edward Lee ◽  
Jirada Petaibanlue
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Announcements ◽  
Share Price ◽  
Accounting Quality ◽  
Exogenous Shock ◽  
Earnings Response Coefficient ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

We utilize the mandatory corporate social responsibility (CSR) disclosure regulation in China as an exogenous shock to evaluate the impact of such disclosures on investors as end-users of accounting information based on the analysis of share price responses to earnings announcements. Specifically, we observe that firms with mandated CSR disclosure experience an increase in earnings response coefficient and a decrease in post-earnings announcement drift. Furthermore, these effects are greater among CSR-sensitive industries, state-owned enterprises, and lower accounting quality firms. Additional analysis also reveals that these effects vary by the quality of CSR disclosure and CSR performance. These findings suggest that CSR disclosure provides incremental information that are useful for investors to assess firms’ future prospects and uncertainties. A broader implication of our study is that mandating CSR disclosure could improve market information efficiency and benefit outside investors.

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