scholarly journals The Influence of Corporate Environmental Responsibility on Overinvestment Behavior: Evidence from South Korea

2020 ◽  
Vol 12 (5) ◽  
pp. 1901
Author(s):  
Jaehong Lee ◽  
Eunsoo Kim
Keyword(s):  
South Korea ◽  
Stock Exchange ◽  
Market Competition ◽  
Fiscal Year ◽  
Environmental Responsibility ◽  
Investment Efficiency ◽  
Corporate Environmental Responsibility ◽  
Financial Firms ◽  
Strong Product ◽  
The Relationship

The purpose of this paper is to examine the association between corporate environmental responsibility (CER) activities and investment efficiency as measured by overinvestment, and whether the industry-level competition affects this association. We investigate a sample of 2285 non-financial firms with fiscal year-end in December listed in the Korea Stock Exchange Market for the period of 2013–2018, measuring the investment efficiency by overinvestment model. Using environmental scores from the Korea Corporate Governance Service to measure CER activities, we show that, on average, firms can decrease overinvestment behavior through CER activities in South Korea. Moreover, in firms in a highly competitive market, the negative association between CER activities and overinvestment is pronounced, indicating that strong product market competition are effective in monitoring managerial opportunistic behavior. These results are robust, even after controlling for different setting and alternative CER. These findings also suggest that the relationship between CER and overinvestment appears to be benefit firms that are sound and sustainable and honestly present their financial information.

scholarly journals Accounting Treatment of R&D for Environmentally Responsible Firms: Evidence from South Korea

2020 ◽  
Vol 12 (8) ◽  
pp. 3418
Author(s):  
Suyon Kim ◽  
Jaehong Lee
Keyword(s):  
Environmental Performance ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Positive Association ◽  
Environmental Responsibility ◽  
Alternative Measure ◽  
Corporate Environmental Responsibility ◽  
Commercial Success ◽  
Environmentally Responsible ◽  
The Relationship

The purpose of this paper is to investigate the relationship between corporate environmental responsibility (CER) and R&D accounting treatment. Using firms listed in the Korea Stock Exchange (KSE) market between the years 2014 and 2018, this study not only investigates this relationship but also expands upon CER activities in various aspects, such as environmental performance strategy, environmental performance organization, and environmental shareholders. Furthermore, the positive association between various CER activities and R&D capitalization is significant in a highly competitive market. This relationship is robust with an alternative measure of CER activities and firm-fixed effects. This result implies that firms participating in CER activities focus on sustainable commercial success, unlike other firms.

scholarly journals THE RELATIONSHIP BETWEEN INCOME SMOOTHING AND INVESTMENT EFFICIENCY WITH COMPANIES’ VALUE

2016 ◽  
Vol 1 (11) ◽  
pp. 27
Author(s):  
Mahdi Salehi ◽  
Fatemah Gholami
Keyword(s):  
Stock Exchange ◽  
Statistical Tests ◽  
Income Smoothing ◽  
Fiscal Year ◽  
Investment Efficiency ◽  
Testing Hypotheses ◽  
Spss Software ◽  
Statistical Sample ◽  
Relationship Of ◽  
The Relationship

The main objective of this study is to examine the relationship of income smoothing and investment efficiency with the value of the companies listed on the Tehran Stock Exchange. For this purpose, the companies’ information was analyzed for a financial period from 2008 to 2012 and the statistical sample of the research includes those companies of which the fiscal year ends on March 20th. Suitable statistical tests including regression analysis and the data were analyzed with the help of SPSS software used for collecting data regarding investment for testing hypotheses. Generally, the findings indicated that the value of the income smoother companies was higher than income non-smoother companies’. Additionally, the value of companies with investment efficiency was higher than the value of companies without investment efficiency. Furthermore, the results showed that the value of income smoother companies with investment efficiency was higher than the value of income non-smoother companies with investment efficiency.

Investigating the Relationship Between Ownership Structure and Investment Efficiency in Emerging Markets: Evidence From the Egyptian Stock Market

2018 ◽  
Vol 8 (4) ◽  
pp. 1
Author(s):  
Ahmed Sayed Rashed ◽  
Ebitihj Mostafa Abd ◽  
Esraa Fathi Mohamed Ismail ◽  
Doaa Mohamed Abd El Samea
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Investment Efficiency ◽  
Outside Director ◽  
Director Ownership ◽  
The Relationship

This paper aims to examine the relationship between Ownership Structure Mechanisms (Managerial Ownership, Institutional Ownership, Block holder Ownership and Outside Director Ownership) and Investment Efficiency by using panel data analysis. To investigate this relationship used the multiple regression models. Findings of investigation of 35 firms listed on the Egyptian Stock Exchange in the period 2006 to 2015 by balanced Panel model representative. Results indicated that Managerial Ownership isn’t related with investment efficiency. In contract, institutional ownership, block holder ownership and outside director ownership have a negative relationship with investment efficiency. In addition, the researcher found that control variables (Firm size, Debt ratio, Tobin’s Q) not related to investment efficiency. These findings imply that the Majority of Egyptians firms relies on institutional without individual ownership and then reduces much of possible from agency problems and decreasing information asymmetry and facilitating the monitoring of investment decisions.

scholarly journals Impact of Corporate Environmental Responsibility on Investment Efficiency: The Moderating Roles of the Institutional Environment and Consumer Environmental Awareness

2019 ◽  
Vol 11 (17) ◽  
pp. 4512 ◽  
Author(s):  
Shihong Zeng ◽  
Yujia Qin ◽  
Guowang Zeng
Keyword(s):  
Institutional Environment ◽  
Environmental Awareness ◽  
Environmental Responsibility ◽  
Investment Efficiency ◽  
Human Beings ◽  
Corporate Environmental Responsibility ◽  
The Sustainable Development ◽  
Chinese Listed Companies ◽  
The Government ◽  
The Impact

The increasingly serious destruction of the natural environment represents a great threat to the sustainable development of human beings and the earth. Under pressure from the government and public opinion, companies must assume environmental responsibility; however, there is no conclusion on whether corporate environmental responsibility is beneficial to companies. From the perspective of investment efficiency, this paper collects panel data from Chinese listed companies from 2011 to 2016 to discuss the impact of corporate environmental responsibility on investment efficiency and the moderating role of the institutional environment and consumer environmental awareness. The results show that corporate environmental responsibility can significantly positively affect investment efficiency, but this effect is not a short-term effect; it needs time to play a role. Second, in regions with a good institutional environment, corporate environmental responsibility has a more significant impact on improving investment efficiency. Finally, with the improvement of consumer environmental awareness, companies that assume environmental responsibility can address underinvestment. The research in this paper supports stakeholder theory, indicating that corporate environmental responsibility is not “selfless dedication”. In addition, the research results of this paper are robust and not subject to endogenous influences.

The impact of corporate environmental responsibility strategy on brand sustainability

2018 ◽  
Vol 9 (3) ◽  
pp. 366-394 ◽  
Author(s):  
Chengzhi Long ◽  
Jing Lin
Keyword(s):  
Competitive Advantage ◽  
Empirical Evidence ◽  
Two Dimensions ◽  
Environmental Responsibility ◽  
Brand Value ◽  
Corporate Environmental Responsibility ◽  
Content Type ◽  
Chinese Context ◽  
The Impact ◽  
The Relationship

PurposeThough enormous research studies were conducted on corporate environmental responsibility (CER), few of them could empirically justify how CER helps to improve firm’s competitive advantage and firms are still hesitant to incorporate CER with their business strategy at present. The purpose of this paper is to theoretically and empirically explore how the CER strategy could help the firm to gain competitive advantage in Chinese context, particularly in terms of achieving brand sustainability (BS).Design/methodology/approachIn this study, 310 listed companies in China were chosen as research sample. First, the CER strategies were classified into developing eco-friendly products, adopting EMAS or other eco-management, enhancing the impact of CER through value chain and charitable CER. Second, BS is constructed as two dimensions, i.e. resource-acquisition and consumer impact. Accordingly, this paper analyzed the relationship between CER and BS with regression model analysis, taking account of several moderating and control variables.FindingsThe results indicate that CER strategies have positive effect on BS. Among all CER strategies, developing eco-friendly products and charitable CER undertakings are the most effective ones to promote BS performance. Also, the paper found that the length of time in adopting CER strategy moderates the effect of CER on BS. The empirical evidence proves that CER strategies could enhance the brand value in terms of BS and help the company to gain competitive advantage.Research limitations/implicationsFirst, most of our samples are of the state-owned enterprises, so our assumption might not be applicable to other types of business. Second, corporate social responsibility (CSR) communication is an important factor in the relation between CSR and corporate performance, but it is not taken into account in this study. Third, the difference in industries and ownership in this research is out of concern.Practical implicationsAs this paper has provided empirical evidence to reveal the effectiveness of different CER strategies, firms in China could be more motivated to undertake CER not only for the sake of environment but also for their brand value and competitive advantage. More importantly, this paper could be a valuable reference for the firms in China to choose suitable and effective CER strategies, as proved in this study, to gain competitive advantage in the market.Originality/valueAt first, while public environmental awareness has improved gradually, we introduce the BS concept to explain how the CER strategies affect CCA. This approach gives us another perspective to highlight the relationship between these two constructs. Second, we conducted our research from practical perspective to explore how to apply the CER undertakings as the company’s strategy. Third, we conducted our empirical research in Chinese context, which will enrich the theoretical CER and CSR literature.

scholarly journals The Relationship between Corporate Environmental Responsibility and Firm Performance: A Moderated Mediation Model of Strategic Similarity and Organization Slack

2019 ◽  
Vol 11 (12) ◽  
pp. 3395 ◽  
Author(s):  
Van Thac Dang ◽  
Ninh Nguyen ◽  
Xiangzhi Bu ◽  
Jianming Wang
Keyword(s):  
Firm Performance ◽  
Past Research ◽  
Moderated Mediation ◽  
Environmental Responsibility ◽  
Organizational Slack ◽  
Mediation Model ◽  
Business Managers ◽  
Corporate Environmental Responsibility ◽  
Moderated Mediation Model ◽  
The Relationship

There has been growing interest among business managers and academics in corporate environmental responsibility (CER), which represents a company’s focus on its long-term sustainability and society. Past research, however, has reported inconsistent and mixed results with regard to the link between CER and firm performance. This study, therefore, proposes and validates a moderated mediation model of strategic similarity and organizational slack to better explain the relationship between CER and firm performance. Data were obtained from 260 listed firms in China from 2015 to 2017, resulting in 780 firm-year observations. Multivariate data analysis indicates that strategic similarity mediates the relationship between CER and firm performance. Furthermore, organizational slack moderates the relationship between CER and strategic similarity and the indirect effect of CER on firm performance through strategic similarity. The findings of this study provide insights for business managers attempting to understand and enhance the quality of their decision making regarding CER. Importantly, business managers should engage in CER activity and pursue strategic similarity to deal with pressure from stakeholders while following the competitive speed of competitors in the marketplace.

scholarly journals Hubungan Pengukuran Nilai Wajar dan Penyajian Kembali Laporan Keuangan:

2019 ◽  
Vol 1 (1) ◽  
pp. 181-197
Author(s):  
Rahmat Riandi ◽  
Nurzi Sebrina ◽  
Vanica Serly
Keyword(s):  
Logistic Regression ◽  
Empirical Evidence ◽  
Stock Exchange ◽  
Financial Sector ◽  
Fair Value ◽  
Financial Firms ◽  
Binomial Logistic Regression ◽  
The Relationship ◽  
Fair Value Measurements

This research aims to find empirical evidence regarding the relationship between the measurements of fair value with restatement. The population in this research is the entire financial sector companies were listed on the Indonesia stock exchange (BEI) in 2014-2017. The testing in this research was conducted using binomial logistic regression. The result shows that the fair value measurements does not affect accounting restatement. Size and leverage does not affect a restatement. For further research could consider the sample by comparing the measurement of fair value on financial firms with non-financial companies. For further research could use other variables that might affect a restatement

scholarly journals Effect of Leverage on Real Earnings Management: Evidence from Korea

2020 ◽  
Vol 12 (6) ◽  
pp. 2232
Author(s):  
Ana Belen Tulcanaza-Prieto ◽  
Younghwan Lee ◽  
Jeong-Ho Koo
Keyword(s):  
Earnings Management ◽  
Stock Price ◽  
Positive Relationship ◽  
Financial Statements ◽  
Least Square ◽  
Real Earnings Management ◽  
Fiscal Year ◽  
Financial Firms ◽  
The Relationship

This study examines how leverage affects real earnings management (REM) in non-financial firms listed on the Korea Composite Stock Price Index from 2010 to 2018 by employing total, short-term, and long-term debt ratios (i.e., leverage) as independent variables and four REM metrics as dependent variables. We find a significant positive relationship between leverage and REM in suspicious firms, whereas the effect of leverage is insignificant in non-suspicious firms. We also find that the positive relationship between both variables is stronger in the second half of the fiscal year, which shows the prevalence of the seasonality of REM, as managers collect high-frequency financial information during this period. These findings are consistent with those in the literature that managers increase firm leverage and REM activities to reduce their probability of being discovered, since financial statements in the interim quarters are not often audited. Our study complements the literature by introducing quarterly data to identify clearly REM activities and detect the strongest effect on the relationship between REM and leverage. Moreover, our results from the two-stage least square (2SLS) regression analysis are consistent with our previous findings.

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