scholarly journals Corporate Social Responsibility and the Value of Cash Holdings: Evidence from the Korean Stock Market

2021 ◽  
Vol 13 (22) ◽  
pp. 12689
Author(s):  
Hyunjung Choi ◽  
Haeyoung Ryu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
South Korea ◽  
Emerging Economies ◽  
Cash Holdings ◽  
Strict Regulation ◽  
Internal Funds ◽  
Corporate Social ◽  
The Impact ◽  
Corporate Cash Holdings

This study examines the impact of a company’s performance in terms of corporate social responsibility (CSR) on investors’ perceptions of corporate cash holdings in South Korea. The study postulates that, in emerging markets, such as South Korea, companies’ CSR activities are often implemented strategically by the management. In emerging economies, companies’ cash holdings are not subject to strict regulation of external capital providers. Hence, companies raise cash easily and manage cash holdings at their discretion, often resulting in agency problems between the management and shareholders. The study’s results reveal that capital market investors negatively perceive the cash holdings of companies actively engaged in CSR. Investors do not expect the cash held by such companies to increase their corporate value. In other words, companies may use internal funds rather than debt for financing CSR activities.

Does corporate social responsibility transparency mitigate corporate cash holdings?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Hendijani Zadeh ◽  
Michel Magnan ◽  
Denis Cormier ◽  
Ahmad Hammami
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Lower Cost ◽  
Value Relevance ◽  
Negative Relationship ◽  
Cash Holdings ◽  
Ordinary Least Squares ◽  
Content Type ◽  
Corporate Social ◽  
Corporate Cash Holdings

PurposeThis article aims to explore whether a firm's corporate social responsibility (CSR) transparency alleviates a firm's cash holdings.Design/methodology/approachCSR transparency ratings encompass both the quantity and the quality of CSR practices, as validated by Bloomberg. While based upon firm-specific disclosure, transparency ratings impound additional information gathered independently by Bloomberg and thus bridge the gap between CSR disclosure and CSR performance. The authors use ordinary least squares estimators, and the authors concentrate on a panel of S&P 500 index companies over the period of 2012–2018 to examine the effect of CSR transparency on corporate cash holdings.FindingsThe authors document that a higher level of CSR transparency induces a lower level of corporate cash holdings. Additional results imply that this negative relationship is more pronounced for firms suffering from high information asymmetry, with low financial reporting quality and for those with weak governance. Further analyses document that higher CSR transparency can help firms to enjoy lower cost of debt and to be less financially constrained, enabling high CSR transparent firms to obtain external financing more easily and at a lower cost, thus lowering the need to hoard cash. Ultimately, the study findings suggest that CSR transparency increases the market value relevance of an additional dollar in cash holdings.Originality/valueThe authors contribute to both research streams of CSR and corporate cash holdings as they provide evidence about the influence of CSR transparency as a monitoring and insurance-like mechanism on corporate cash holdings.

The Effect of Internal Corporate Social Responsibility on Job Satisfaction: An Empirical Study on Jordanian Pharmaceutical Companies

2020 ◽  
Vol 8 (2) ◽  
pp. 112
Author(s):  
Sura Altheeb ◽  
Kholoud Sudqi Al-Louzi
Keyword(s):  
Job Satisfaction ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Quantitative Research ◽  
Skills Development ◽  
Future Research ◽  
Pharmaceutical Companies ◽  
Corporate Social ◽  
The Impact ◽  
Positive Results

The current research investigates the impact of internal corporate social responsibility on job satisfaction in Jordanian pharmaceutical companies. Quantitative research design and regression analysis were applied on a total of 302 valid returns that were obtained in a questionnaire based survey from 14 pharmaceutical companies among employees, supervisors and managers. The results showed that internal corporate social responsibility was significantly related to job satisfaction and three of its dimensions, namely working conditions, work life balance and empowerment contributed significantly to job satisfaction, whereas employment stability and skills development had no contribution. This study implies that Jordanian pharmaceutical companies have to try their best to promote and facilitate internal corporate social responsibility among their employees in an effort to improve their job satisfaction, which will eventually yield positive results for the company as a whole. In light of these results, the research presented many recommendations for future research; the most important ones were the application of this study in other sectors, cultures, and countries, and using of multi method for collecting data.

Corporate Social Responsibility and Earnings Management: The Moderating Role of Family Ownership

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Asif Saeed ◽  
Aijaz Mustafa Hashmi ◽  
Attiya Yasmin Javid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Family Firms ◽  
Negative Impact ◽  
Stock Exchange ◽  
Least Square ◽  
Family Ownership ◽  
Corporate Social ◽  
The Impact

This study aims to explore the impact of family ownership on the relationship among corporate social responsibility (CSR) and earning management (EM) in Pakistan. Data is collected from nonfinancial listed firms on Pakistan Stock Exchange (PSE) for the period 2009-2017. Our results of pooled ordinary least square regression indicate that CSR has significant negative impact on EM. Furthermore, results also indicate that association between CSR and EM is moderated by family ownership. Family firms which perform CSR activities are less involved in EM as compare to nonfamily firms perform CSR activities. This variation in behavior of EM in family and non-family firms can possibly be explained by socioemotional wealth theory. Keywords: Corporate Social Responsibility, Earnings Management, Family Ownership

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.

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