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 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 Financial Flexibility - A Synthesis of Literature Review

2019 ◽  
Vol 9 (1) ◽  
pp. 245
Author(s):  
Rashidul Islam ◽  
Man Wang ◽  
Leo Vashkor Dewri
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Financial Crisis ◽  
Social Responsibility ◽  
Balance Sheet ◽  
Z Score ◽  
Financial Flexibility ◽  
Corporate Social ◽  
The Relationship

Financial flexibility has engrossed considerable interest of researcher over the last three decades. It is considered as most critical element of capital structure decision. The objectives of this research are to synthesize the existing literature on financial flexibility and find the literature gap. First, we show the relationship between theories and financial flexibility from existing literature and discuss the relationship between cash holding, leverage, payout policy and impact on firm performance during and after financial crisis. Second, we discuss how off balance sheet instruments impact on leverage and financial flexibility. We also discuss the relationship between corporate governance, corporate social responsibility and financial flexibility. We evidence from existing literature that financial flexibility has positive relationship on investment and firm performance during and after financial crisis. In addition to that we conclude that the off balance sheet instrument financing is increasing abnormally, and it has effect on debt policy and financial flexibility that yet to be studied verified. We further document from the current literature that corporate social responsibility and corporate governance may also widen financial flexibility in the US market but no significant researcher addressed these issues in the developed markets. While using Altman’s Z-Score for measuring financial flexibility it is unable to accommodate off balance sheet items therefore market demands for adjusted Z-Score.

scholarly journals Corporate Social Responsibility and Firm Performance in China’s Manufacturing: A Global Perspective of Business Models

2021 ◽  
Vol 13 (4) ◽  
pp. 2388
Author(s):  
Qianqian Hu ◽  
Tianlun Zhu ◽  
Chien-Liang Lin ◽  
Tiejun Chen ◽  
Tachia Chin
Keyword(s):  
Developing Countries ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Business Models ◽  
Manufacturing Firms ◽  
Global Perspective ◽  
Internet Technology ◽  
Digital World ◽  
Corporate Social

In a globalized and digital world, manufacturing firms have used internet technology to conduct value appropriation (VA). However, during the COVID-19 crisis, export-led manufacturing firms around the world, particularly those in developing countries, have been forced to lay off workers and cope with VA-related problems, and serious survival problems have resulted in critical corporate social responsibility (CSR)-related challenges. Whereas limited research has discussed relevant issues in nonwestern contexts, we adopt a global perspective of business model and transactional cost theory, aiming to fill this gap by investigating the mechanisms among different dimensions of CSR implementation, firm performance, and VA herein. Based on a sample of listed Chinese manufacturing firms, the results show that the CSR technique dimension is negatively related to firm performance, that the CSR content dimension is positively related to firm performance, and that VA positively moderates the relationships of all three CSR dimensions to firm performance. The main contribution here is providing a more comprehensive understanding of how different CSR dimensions reflect firms’ multiple ethical behaviors, which influence their sustainable performance, respectively, thus enriching the existing knowledge of CSR studies in a new digital era riddled with uncertainties and complexities. We also offer practical implications for other export-led manufacturing firms in developing countries facing turbulent times.

scholarly journals Analisis Pengaruh Corporate Governance, Corporate Social Responsibility, dan Corporate Financial Performance terhadap Perusahaan Indeks Kompas100 (The Influence Analysis of Corporate Governance, Corporate Social Responsibility, and Corporate Financial Performance to Companies in Kompas100 Index)

2015 ◽  
Vol 5 (1) ◽  
pp. 74-85
Author(s):  
Annisa Putri Caesari ◽  
Abdul Kohar Irwanto ◽  
Muhammad Syamsun
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Corporate Financial Performance ◽  
Operational Activities ◽  
Corporate Social ◽  
The Relationship

The main objective of a company in running its operational activities is to maximize profit. Apart from that, the company is also obliged to provide maximum contribution to the community. To accommodate the objectives and obligations, the company may apply a system called Corporate Governance (CG). The company can also implement Corporate Social Responsibility (CSR) as its significant step in contributing to the community. The implementation of CG and CSR is related because CSR is a consequence of CG implementation. In addition to CG and CSR are interconnected, CG and CSR are also interconnected with Corporate Financial Performance (CFP). Through the implementation of CG, the company can improve CFP. The relationship between CSR and CFP can be associated positively or negatively. The research was conducted on 100 companies listed in Kompas100 index to determine the influence of CG to CSR, influence of CG to CFP, influence CSR to CFP, and influence of CG to the CFP with CSR as a moderating variable. Structural equation modeling (SEM) analysis was used to determine the relationship of these three variables. The results showed that CG influenced positively to CSR, but influenced negatively to CFP. Likewise, CSR influenced negatively to CFP. Due to the negative influence of CG to CFP and CSR to CFP, CG also influenced negatively to the CFP through the disclosure of CSR as moderating variable.Keyword: corporate governance, corporate social responsibility, corporate financial performance, Indeks Kompas100

scholarly journals Corporate social responsibility policies and value creation: does corporate governance and profitability mediate that relationship?

2019 ◽  
Vol 16 (2) ◽  
pp. 270-280 ◽  
Author(s):  
Josua Tarigan ◽  
Saarce Elsye Hatane ◽  
Linneke Stacia ◽  
Deborah Christine Widjaja
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Value Creation ◽  
Structural Equation ◽  
Deep Understanding ◽  
Value Added ◽  
Strong Relationship ◽  
Good Corporate Governance ◽  
Corporate Social

With a purpose to give a deep understanding relating to the manifestation of social responsibilities practices among Indonesian companies, this paper reflects the relationship of corporate social responsibility (CSR), corporate profitability (CP), value creation (VC) and good corporate governance (GCG). Kinder, Lydenberg, and Domini’s (KLD) measurement approach is used in this study to measure the social responsibility practices, as this gives cross-border analysis of social responsibility. Corporate profitability captures return on assets, which is accounting-based measurement, whereas value creation explains the economic value added, which is shareholder-based measurement. Structural Equation Model (SEM) analysis is conducted for Indonesian listed companies, which appeared in Corporate Governance Perception Index (CGPI). The empirical result suggests that CSR serves as a tool in assisting shareholders value and performance. Accordingly, firms should incorporate CSR practices to enhance its strategic investment and sustain a strong relationship with its stakeholders. Subsequently, management should also take concern of having good corporate governance in order to improve company’s performance by supervising and monitoring of the company’s operation, ensure the fulfillment to the stakeholder’s interest. This paper presents fresh insights into applications of corporate social responsibility principles and corporate governance in Indonesian context that has not received systematic attention and consideration in the literature.

scholarly journals Pengaruh Corporate Social Responsibility Terhadap Kinerja Perusahaan Dengan Good Corporate Governance Sebagai Variabel Moderasi Pada Perusahaan Manufaktur Di Bursa Efek Indonesia Periode 2015-2017

2020 ◽  
Vol 12 (1) ◽  
pp. 123-136
Author(s):  
Tiopan Naek ◽  
Lauw Tjun Tjun
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Random Sampling ◽  
Linear Regression Analysis ◽  
Simple Random Sampling ◽  
Manufacturing Companies ◽  
Good Corporate Governance ◽  
Corporate Social

Abstrak Penelitian ini bertujuan untuk menganalisis pengaruh corporate social responsibility terhadap kinerja perusahaan dengan good corporate governance sebagai variabel moderasi. Penelitian ini memakai metode pengambilan sampel secara probabilitas random sederhana (simple random sampling). Sampel diambil dari 40 perusahaan manufaktur yang listing di Bursa Efek Indonesia pada periode 2015 - 2017. Uji hipotesis menggunakan analisis regresi linier berganda. Didapat bahwa pengaruh good corporate governance yang memoderasi corporate social responsibility terhadap kinerja perusahaan adalah sebesar 18.8%.  Kata Kunci: Corporate Social Responsibility, Good Corporate Governance, dan Kinerja Perusahaan   Abstract This study aims to analyze the effect of Corporate Social Responsibility on Firm Performance with Good Corporate Governance as a moderating variable. This study uses a simple random sampling method. Samples were taken from 40 manufacturing companies listed on the Indonesia Stock Exchange in the 2015-2017 period. Test the hypothesis using multiple linear regression analysis. It was found that the effect of Good Corporate Governance that moderates Corporate Social Responsibility on Firm performance is 18.8%. Keywords: Corporate Social Responsibility, Good Corporate Governance, and Firm Performance

The Impact of Firm Performance and Corporate Governance on Corporate Social Responsibility

2020 ◽  
pp. 266-288
Author(s):  
Souhaila Kammoun ◽  
Sahar Loukil ◽  
Youssra Ben Romdhane Loukil
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Negative Impact ◽  
Vital Role ◽  
Organizational Legitimacy ◽  
Annual Reports ◽  
Corporate Governance Mechanisms ◽  
Corporate Social

Based on the behavioral aspect of the governance theory, this chapter explores the effect of the firm performance and corporate governance (CG) on corporate social responsibility (CSR) engagement by investigating their causal effects. Using annual reports of a large and extensive sample of French firms for the year 2014‐2016, we find that firm performance significantly improves that firm's social responsibility, but it has a significant and negative impact when we consider corporate government as a contingency factor. The results show that the existence of institutional administrator is in favor of CSR while it is the inverse effect when we consider the other independent administrators. However, we fail to find any significant impact of administrator's expertise. Our results suggest that pressures exerted by outsiders and corporate governance mechanisms influence CSR practices. Overall, our study implies that corporate governance attributes play a vital role in ensuring organizational legitimacy through CSR. The study findings should be of interest to regulators and policy makers.

scholarly journals The Moderating Role of Corporate Social Responsibility in the Association of Internal Corporate Governance and Profitability; Evidence from Pakistan

2021 ◽  
Vol 18 (11) ◽  
pp. 5830
Author(s):  
Jihai Lu ◽  
Sohail Ahmad Javeed ◽  
Rashid Latief ◽  
Tao Jiang ◽  
Tze San Ong
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Social Problems ◽  
Audit Quality ◽  
Industrial Sector ◽  
Least Square ◽  
Corporate Social

At present, climate and other environmental problems are arising because of the development of the industrial sector at a large level. The industrial sector is supposed to be a major cause of climate change problems that lead to global warming. Therefore, corporate social responsibility (CSR) with the help of corporate governance is an imperative approach to control these social problems. Consequently, in the context of the organizational and management theory, agency theory, and the stakeholder theory, this study focuses on important factors of internal corporate governance such as chief executive officer (CEO) power, the board size, independence, ownership concentration, managerial ownership, and audit quality for improving the profitability of firms. Moreover, this study considers corporate social responsibility as a controlling and moderating factor for firm performance and internal corporate governance. We employed ordinary least square (OLS) for endogeneity testing, fixed effect (FE), generalized method of moments (GMM), and feasible generalized least square (FGLS) on data of Pakistani firms for the period of 2010–2019. The results of this study demonstrate the following outcomes: firstly, all internal corporate governance factors are positively linked with firm performance; secondly, corporate social responsibility (CSR) is the most valuable tool for improving profitability. Importantly, this study suggests that all internal corporate governance factors are positively linked with firm performance because of the interactive role of corporate social responsibility (CSR). This study practically contributes to the literature by suggesting the imperative role of corporate social responsibility (CSR) for internal corporate governance, which may help to reduce climate and social problems.

Sign in / Sign up

Export Citation Format

Share Document