Testing Value Relevance of Corporate Social Responsibility: Evidence from Korean Retail Firms

2019 ◽  
Vol 2019 (7) ◽  
pp. 347-352
Author(s):  
Sam-Ho SON ◽  
Jeong-Hwan LEE
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Value Relevance ◽  
Corporate Social

scholarly journals The Value Relevance of Corporate Social Responsibility: Focusing on Donation Expenditure

2016 ◽  
Vol 12 (8) ◽  
pp. 1
Author(s):  
Gee Jung Kwon
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Value Relevance ◽  
Time Lag ◽  
Cash Flows ◽  
Research Hypothesis ◽  
Lag Effect ◽  
Future Value ◽  
Corporate Social

<p>This paper investigates the value relevance of corporate social responsibility. In particular, the paper examines the time lag value relevance of donation expenditure on firm value over the period of 2000–2014 in the listed Korean stock markets. Through empirical analysis, the paper provides evidence that donation expenditure has a significant effect on future firm value.</p><p>The empirical results of this paper support research hypothesis 1 (donation expenses have an effect on firm value) and research hypothesis 2 (donation expenses have a time lag effect on firms’ future value). In particular, the results show that donation expenses have an effect on firm value and the time lag interval is from two to 12 years. These results suggest that donation expenses can be regarded as assets that have potential for firms’ future cash flows.</p><p>The empirical evidence of this paper suggests there should be debate on whether the accounting treatment of donations should be changed in Korean accounting practices. </p>

scholarly journals Analisis Relevansi Nilai Informasi Akuntansi Dengan Pengungkapan Corporate Social Responsibility Sebagai Variabel Pemoderasi

2021 ◽  
Vol 15 (2) ◽  
pp. 79-86
Author(s):  
Indhung Listyaningrum ◽  
Katika Hendra Titisari ◽  
Siti Nurlaela
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Price ◽  
Banking Sector ◽  
Value Relevance ◽  
Hypothesis Test ◽  
Accounting Information ◽  
Book Value ◽  
Csr Disclosure ◽  
Corporate Social

This research was aimed to examined and analyzed the value relevance of accounting information by disclosured of Corporate Social Responsibility (CSR) as a moderating variabel in banking sector companies. The population of this research was by 11 banking companies registered on the BEI (Bursa Efek Indonesia) in the period of 2015 -2018. From the population, reasearcher found 44 samples by used purposive sampling method. The hypothesis test of this research used multiple linear regression by Moderated Regression Analysis (MRA) approach. The independent variables of this research were earning and book value. CSR as an independen variable and moderating variable. While the dependent variable was the stock price. The result of this research was to indicated that the earning and book value were relevance to the value of accounting information. While CSR disclosure as an independent variable and moderating variable didn’t have relevance to the value of accounting information. The moderating result of CSR disclosure weren’t able to substantiated the earning and book value.

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.

Value-Relevance of Corporate Social Responsibility: Evidence from Short Selling

2016 ◽  
Vol 28 (2) ◽  
pp. 29-52 ◽  
Author(s):  
Archana Jain ◽  
Pankaj K. Jain ◽  
Zabihollah Rezaee
Keyword(s):  
Corporate Social Responsibility ◽  
Standard Deviation ◽  
Social Responsibility ◽  
Value Relevance ◽  
Investment Decisions ◽  
Short Selling ◽  
Return On Assets ◽  
Return On Equity ◽  
Short Sellers ◽  
Corporate Social

ABSTRACT We examine whether short sellers, as informed investors, take into consideration corporate social responsibility (CSR) performance and disclosure in the areas of environmental, social, and governance (ESG) sustainability in making investment decisions. We find that firms' market value and future financial performance, measured by price per share, return on equity, and return on assets, are lower, whereas operating risk, measured by the standard deviation of return on equity and the standard deviation of return on assets, is higher for firms with low composite ESG scores. We detect a negative association between ESG scores and short selling, indicating that short sellers avoid firms with high ESG scores and tend to target firms with low ESG scores. We conclude that investors consider firms' ESG scores as value relevant in making investment decisions and thus management should integrate CSR into strategic decisions and corporate reporting. JEL Classifications: G32; M40.

scholarly journals The Relationsip Between Corporate Social Responsibility Through Financial Reporting Quality

2022 ◽  
Vol 2 (3) ◽  
pp. 134-143
Author(s):  
Rizalnur FIRDAUS ◽  
Tio Arriela DOLOKSARIBU ◽  
Nova Dwi HERNANIK
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Significant Relationship ◽  
Value Relevance ◽  
Reporting Quality ◽  
Manufacturing Companies ◽  
Corporate Social ◽  
The Impact

This study aims to examine the impact of Corporate Social Responsibility on the Quality of Financial Reporting in manufacturing companies in Indonesia. The research sample consisted of 75 manufacturing companies that were observed from 2017 to 2019. This study uses a regression data panel to test the effect of Corporate Social Responsibility (CSR) which is calculated by using a dummy variable on the Quality of Financial Reporting (FRQ) which uses a measure consisting of value relevance (VR), acrual quality (AQ) and earning persistence (EP). The results of research on manufacturing companies in Indonesia indicate that there is a positive and significant relationship between Corporate Social Responsibility and value relevance. The results of research on manufacturing companies in Indonesia indicate that there is a positive and significant relationship between Corporate Social Responsibility and accrual quality. The results of research on manufacturing companies in Indonesia show that there is a positive and significant relationship between Corporate Social Responsibility and earning persistence.

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