scholarly journals Financial Crisis and Accounting Information: The Need for Corporate Social Responsibility in Accounting Profession

2010 ◽  
Vol XIII (Issue 3) ◽  
pp. 39-62
Author(s):  
Monica ◽  
Nicolae ◽  
Ludovica Breban
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Crisis ◽  
Social Responsibility ◽  
Accounting Information ◽  
Accounting Profession ◽  
Corporate Social

Corporate Social Responsibility Exposure and Performance of Mutual Funds

2019 ◽  
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Crisis ◽  
Social Responsibility ◽  
Mutual Funds ◽  
Stock Return ◽  
Fund Performance ◽  
A Value ◽  
Performance Patterns ◽  
And Performance ◽  
Corporate Social

The authors study the performance consequences of exposure to corporate social responsibility (CSR) through stock holdings for mutual funds. Using a large sample of US domestic mutual funds, they find that funds overweighting low-CSR stocks outperform funds underweighting them by 1.7% to 2.6% annually. This outperformance, however, reverses during the 2008-2009 financial crisis. They also find similar performance patterns among stocks. An equal-weighted high-minus-low CSR stock return spread can explain the CSR-based fund performance spread, whereas a value-weighted spread cannot. These results are consistent with the interpretation that low-CSR funds overweight low-CSR small-cap stocks that offer high returns to investors who are averse to low-CSR investments. Investors tend to avoid low-CSR stocks due to either social norms against these stocks or risk of underperformance of these investments when overall trust in corporations suffers a negative shock (such as during a financial crisis).

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.

The relationship between corporate social responsibility and corporate reputation in a turbulent environment: Spanish evidence of the Ibex35 firms

2015 ◽  
Vol 15 (4) ◽  
pp. 563-575 ◽  
Author(s):  
José Luis Fernández Sánchez ◽  
Ladislao Luna Sotorrío ◽  
Elisa Baraibar Diez
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Crisis ◽  
Social Responsibility ◽  
Corporate Reputation ◽  
Content Type ◽  
Current Financial Crisis ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

Purpose – The purpose of this study is to provide more knowledge about the model to generate reputation and its relationship in the long term with companies’ strategy of social responsibility. Particularly, research is done to test whether there is a positive effect of firms’ social behaviour (corporate social responsibility [CSR]), analysing differences of intensity and consistency, on their corporate reputation (CR) and whether the current financial crisis is a factor that has changed the relationship between both variables (moderator factor). Design/methodology/approach – This study uses a sample of 26 Spanish large firms of the Ibex35 index and covers an eight-year period from 2004 to 2011. To test the hypotheses of this research, a fixed-effects model was estimated using moderating regression analysis. Findings – The results obtained show that, for the Spanish Ibex35 companies, CSR practices according to their consistency have a significant positive effect on CR and in turbulent environments, as in the current financial crisis, it has had a significant positive influence on the CSR-CR relationship. Originality/value – Although a substantial number of empirical studies have examined the relationship between firms’ strategy and their performance, only a few of them have analysed the impact of the external environment on this relationship, whereby there is a need for longitudinal studies with different economic scenarios to achieve better knowledge of the CSR–CR relationship.

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