scholarly journals Corporate Social Responsibility and Cost of Equity: Literature Review and Suggestions for Future Research

2020 ◽  
Vol 2 (3) ◽  
pp. 1
Author(s):  
Renato Garzón-Jiménez ◽  
Ana Zorio-Grima
Keyword(s):  
Literature Review ◽  
Listed Companies ◽  
Future Research ◽  
Cost Of Equity ◽  
Socially Responsible ◽  
Theoretical Approaches ◽  
Wide Range ◽  
New Ideas ◽  
Corporate Social ◽  
The Cost

Listed companies have become increasingly aware not only of the importance of being socially responsible but also about reporting their initiatives in this field. Existing research has investigated many of the impacts of the sustainable profile of companies on a wide range of financial dimensions. The link between the cost of equity and sustainability is extremely timely as it can have great potential in reinforcing good practices regarding sustainable engagement amongst listed companies, which can also be regarded as trendsetters by other types of companies and institutions. This paper presents a thorough literature review of 22 articles focused on the link between sustainability and the cost of capital. The main contribution of this study is the broad scope of the literature review not only regarding the number of papers revised but also the provided details and their systematisation, such that future researchers in the field can easily identify the references regarding, for instance, different theoretical approaches. The methodologies that have been used to test the hypotheses as well as how the cost of equity is proxied by the different authors is presented together with the independent variables for measuring the sustainable profile of companies as well as the control variables. Our literature review also pays special attention to the different regional settings where research has examined the link between the cost of equity and sustainability and presents new ideas for studies in the field in order to open up future avenues for research.

scholarly journals Director Networks and Cost of Equity Capital: Based on “Busy Director Hypothesis” Analysis

2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Sai Qiu ◽  
Xin Sun
Keyword(s):  
Listed Companies ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Financing Decisions ◽  
Negative Effect ◽  
New Ideas ◽  
The Cost ◽  
The Relationship ◽  
Negative Regulatory Role

This paper uses the data of Shanghai and Shenzhen A-share-listed companies from 2008 to 2018 to construct the director networks as an indicator to explore the relationship between the company’s director networks and the cost of equity capital and the influence of nature of property rights and the ownership structure on the aforementioned relationship. The research results demonstrate that director networks cannot effectively reduce the cost of equity capital. This conclusion verifies the “busy director hypothesis.” With the increase in the director networks centrality, the increase in the cost of equity capital in non-state-owned listed companies is more significant compared with state-owned listed companies; equity concentration plays a significant negative regulatory role in the director networks centrality and affects the cost of equity capital. Compared with the networks centrality of independent director, the networks centrality of nonindependent director has a stronger negative effect on the cost of equity capital. This article broadens the perspective of corporate governance research and provides new ideas for listed companies to make financing decisions.

scholarly journals Which Corporate Social Responsibility Performance Affects the Cost of Equity? Evidence from Korea

2019 ◽  
Vol 11 (10) ◽  
pp. 2947 ◽  
Author(s):  
Youngkyung Ok ◽  
Jungmu Kim
Keyword(s):  
Environmental Management ◽  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Cost Of Equity ◽  
Socially Responsible ◽  
Responsible Management ◽  
Corporate Social ◽  
The Cost

This study analyzes the effect of corporate social responsibility activities on the cost of equity in Korea. We find that firms with better corporate social responsibility (CSR) performance generally exhibit cheaper equity financing. Considering three dimensions of CSR separately, we find that a higher “socially responsible management” significantly reduces the cost of equity by 1.13%-1.37% per annum and “Corporate governance” activity also marginally affects the cost of equity, while “environmental management” has no impact. Our result is robust in controlling for systematic risk, size, leverage ratio, and the number of analysts. These results imply that enhancing socially responsible management and corporate governance can increase firm value in Korea, but environmental management is not relevant for firm values. Putting differently, investors tolerate a lower return from firms with more CSR activities, because they expect them to provide sustainable incomes. Future researches can extend our approach to examining the effect on the cost of debt and cost of capital.

scholarly journals An explanatory study of the use of e-mail investor communication by South African listed companies

2016 ◽  
Vol 18 (1) ◽  
Author(s):  
Roelof Baard ◽  
George Nel
Keyword(s):  
Listed Companies ◽  
Future Research ◽  
Contact Method ◽  
Interactive Communication ◽  
Handling Performance ◽  
Corporate Websites ◽  
Use Of Social Media ◽  
Almost All ◽  
The Cost ◽  
E Mail

Background: Although research shows that almost all listed companies have corporate websites with dedicated investor relations (IR) sections that enable companies to ‘push’ information to investors, it was argued that such an asymmetrical approach to communication is insufficient for companies wishing to exercise good IR. The purpose of this study was to test the effectiveness of the Internet to act as a mechanism to achieve more interactive communication between companies and investors.Objectives: The objectives of the study were to measure the responsiveness, timeliness and relevance of companies’ responses to e-mail requests, and to test for the determinants (size, market-to-book ratio, profitability, leverage and liquidity) thereof.Method: The mystery investor approach and a content analysis were used to study the e-mail handling performance of companies. The associations between company-specific characteristics were statistically tested.Results: It was found that the e-mail handling performance of companies in this study was poor compared with previous studies. Significant relationships between company size and responsiveness and relevance, and between market-to-book ratio and relevance were reported, as well as between the contact method used to request information and relevance and the use of social media and timeliness.Conclusion: Specific areas where companies could improve their investor communications were identified. The need for further research was discussed to explain some of the relationships found, as well as those not found, in contrast to what was expected. Future research is warranted to examine the relationship between the e-mail handling performance of companies and information asymmetry and the cost of equity of companies.

scholarly journals Personality trait differences across types of entrepreneurs: a systematic literature review

2021 ◽  
Author(s):  
Florentine U. Salmony ◽  
Dominik K. Kanbach
Keyword(s):  
Literature Review ◽  
Personality Traits ◽  
Systematic Literature Review ◽  
Empirical Studies ◽  
Academic Research ◽  
Future Research ◽  
Rural Farmers ◽  
Start Up ◽  
Wide Range ◽  
Research Integration

AbstractThe personality traits that define entrepreneurs have been of significant interest to academic research for several decades. However, previous studies have used vastly different definitions of the term “entrepreneur”, meaning their subjects have ranged from rural farmers to tech-industry start-up founders. Consequently, most research has investigated disparate sub-types of entrepreneurs, which may not allow for inferences to be made regarding the general entrepreneurial population. Despite this, studies have frequently extrapolated results from narrow sub-types to entrepreneurs in general. This variation in entrepreneur samples reduces the comparability of empirical studies and calls into question the reviews that pool results without systematic differentiation between sub-types. The present study offers a novel account by differentiating between the definitions of “entrepreneur” used in studies on entrepreneurs’ personality traits. We conduct a systematic literature review across 95 studies from 1985 to 2020. We uncover three main themes across the previous studies. First, previous research applied a wide range of definitions of the term “entrepreneur”. Second, we identify several inconsistent findings across studies, which may at least partially be due to the use of heterogeneous entrepreneur samples. Third, the few studies that distinguished between various types of entrepreneurs revealed differences between them. Our systematic differentiation between entrepreneur sub-types and our research integration offer a novel perspective that has, to date, been widely neglected in academic research. Future research should use clearly defined entrepreneurial samples and conduct more systematic investigations into the differences between entrepreneur sub-types.

The development of corporate social responsibility in accounting research: evidence from Indonesia

2019 ◽  
Vol 15 (5) ◽  
pp. 671-688
Author(s):  
Juniati Gunawan ◽  
SeTin SeTin
Keyword(s):  
Corporate Social Responsibility ◽  
Literature Review ◽  
Social Responsibility ◽  
Global Reporting Initiative ◽  
Future Research ◽  
Content Type ◽  
Accounting Research ◽  
Study Results ◽  
Csr Disclosure ◽  
Corporate Social

Purpose The purpose of this paper is to analyze accounting research developments in the area of corporate social responsibility (CSR) in Indonesia for the period 2012-2016. The focus of CSR literature review is on disclosures and not to examine CSR activities or programs. Design/methodology/approach This study applied a descriptive approach to provide evidence on the major variables that have been examined in CSR research and what is the measurement used to measure CSR disclosures. The CSR research development was traced through mapping articles published in the international journal with the subject of category accounting (Schimago Journal rank quartile Q3 and Q4), and national journal (national accredited accounting journals, as well as the proceedings of National Symposium on Accounting [NSA]). A total of 5,971 articles were reviewed and resulted in 31 Indonesian CSR articles in accounting which are dominated by quantitative methods (93.5 per cent), and as many as 28 articles were analyzed. Findings The analyses result showed that (1) 75 per cent of CSR research were in the areas of financial accounting and capital markets, followed by tax accounting and corporate governance; (2) The most widely used variable associated with CSR was financial performance; which (3) More than 80 per cent of the CSR research used annual reports as the source of data with only 19.23 per cent using sustainability reports; (4) 65.38 per cent of the CSR disclosure measurement referred to used other CSR disclosure lists, other than the Global Reporting Initiative (GRI). Research limitations/implications The study results are important as a basis for future studies to provide a platform for the analysis to cover the gap between CSR studies in the academic and business areas for not only Indonesia but also other countries. Comparative studies between countries will be essential for future research to provide empirical evidence on the development of CSR research in accounting fields. Practical implications The study provides comprehensive pictures in how CSR disclosures have been analyzed in academic area so that practitioners in business field are able to understand the results on which variables are associated with CSR. Further, the practitioners could enhance their CSR implementations and reports to gain the utmost benefits for their business. Originality/value This study is considered as the first CSR literature review analyzed in accounting research publications. As CSR topics have been emerging developed in many field of studies, reviewing this topic in the accounting area resulted interesting findings. These findings are useful for not only Indonesia but also other countries. Further, this study provides platform to fill many gaps for future research in the topic of CSR in accounting field.

scholarly journals Corporate Board Committees and Corporate Outcomes: An International Systematic Literature Review and Agenda for Future Research

2021 ◽  
pp. 2150001 ◽  
Author(s):  
Mohammed A. Alhossini ◽  
Collins G. Ntim ◽  
Alaa Mansour Zalata
Keyword(s):  
Literature Review ◽  
Empirical Evidence ◽  
Systematic Literature Review ◽  
Current Knowledge ◽  
Future Research ◽  
Applied Theory ◽  
Corporate Board ◽  
Theoretical Frameworks ◽  
Wide Range ◽  
The Individual

This paper comprehensively reviews the current body of international accounting literature regarding advisory/monitoring committees and corporate outcomes. Specifically, it synthesizes, appraises, and extends current knowledge on the (a) theoretical (i.e., economic, accounting/corporate governance, sociological and socio-psychological) perspectives and (b) empirical evidence of the observable and less visible attributes at both the individual and committee levels and their link with a wide range (financial/non-financial) of corporate outcomes. Using the systematic literature review method, 304 articles from 59 journals in the fields of accounting and finance that were published between January 1992 and December 2018 are reviewed. The main findings are as follows. First and theoretically, agency theory is the most dominant applied theory/studies with no application of theory at all (descriptive), while the application of integrated theoretical frameworks is lacking in the reviewed articles. Secondly, the existing empirical evidence focusses excessively on (a) monitoring instead of advisory committees and (b) observable rather than less visible committee attributes. Thirdly, scarcity of cross-country studies along with methodological limitations relating to measurement inconsistencies, insufficiency of variables, and dominance of quantitative studies, among others, are identified. Finally, promising future research avenues are outlined.

scholarly journals CSR in Management Sciences: Is It “a Road to Nowhere”?

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 198
Author(s):  
Andrzej Janowski
Keyword(s):  
Environmental Management ◽  
Corporate Social Responsibility ◽  
Literature Review ◽  
Social Responsibility ◽  
Impact Factor ◽  
State Of The Art ◽  
Future Research ◽  
Management Journal ◽  
Extensive Analysis ◽  
Corporate Social

Over the years, the idea of corporate social responsibility has attracted the interest both of practitioners and researchers. While a discourse has occurred in the context of the meaning of Corporate Social Responsibility (CSR), there is no extensive analysis of the latest contributions. To address this gap, three objectives have been formulated for the purpose of this paper: to analyse development trends in CSR definitions, to assess the applicability of scientific efforts in the above-mentioned area and to demonstrate future research opportunities and threats based on the state-of-the-art in CSR. An organized literature review and bibliometric methods have been proposed based on 55 articles published in the “Corporate Social Responsibility and Environmental Management Journal”, the top ranked periodical with the highest Impact Factor, from its beginnings to January 2021. This research provides a clear overview of the recent CSR trends that are present in the literature, by pinpointing those works that refer to significant characteristics and indicate future trajectories of CSR in a managerial practical context, particularly important for the effectiveness of future CSR-oriented organizational activities. This paper summarises the existing CSR-related knowledge and constitutes the first attempt to investigate the process of the creation and development of the corporate social responsibility concept from its origins to its contemporary multidimensionality.

scholarly journals Corporate Social Responsibility and Corporate Financial Performance: An Empirical Literature Review

2021 ◽  
pp. 1-32
Author(s):  
Sonia Boukattaya ◽  
Zyed Achour ◽  
Zeineb Hlioui
Keyword(s):  
Corporate Social Responsibility ◽  
Literature Review ◽  
Social Responsibility ◽  
Financial Performance ◽  
Social Impact ◽  
Empirical Literature ◽  
Future Research ◽  
Corporate Financial Performance ◽  
Content Analysis Method ◽  
Corporate Social

This study aims to present a literature review of recent studies on the relationship between environmental, social and governance (ESG) performance, corporate social responsibility (CSR) and corporate financial performance (CFP) and to provide a path for future researches. Using content analysis method, a total of 88 papers published in renowned journals, over the period 2015-2021, were selected in the review. Several findings have been made: first, the majority of researches have focused on the CSR’s “social impact” hypothesis on CFP; the reverse relationship seems to have been overlooked. Second, the contested results are likely to be attributable both to differences in research contexts and CSR’ laws but also to biases relating to the operationalization of CSR concept and CFP proxies retained. Finally, several arguments are advanced arguing for an indirect link between CSR and CFP. Future research should, therefore, pay attention to the different contingent variables that are likely to affect the studied relationship.

scholarly journals PENGARUH BIAYA CORPORATE SOCIAL RESPONSIBILITY (CSR COST) BERDASARKAN MOTIF KEUANGAN, MOTIF ETIKA, DAN MOTIF ALTRUISTIK TERHADAP CORPORATE FINANCIAL PERFORMANCE

2017 ◽  
Vol 9 (1) ◽  
Author(s):  
Markus Djohan Utama ◽  
Devica Pratiwi
Keyword(s):  
Quantitative Research ◽  
Stock Exchange ◽  
Financial Statement ◽  
Future Research ◽  
Altruistic Motive ◽  
Financial Motive ◽  
Spss Software ◽  
Corporate Social ◽  
The Cost ◽  
Positive Effect

This research aimed to determine the effect of CSR cost that the company paid for community, social, environment, etc. based on financial motive, ethic motive and altruistic motive simultaneously or partial, on the ROE and ROS of company.The research is quantitative research with the help of IBM SPSS Software 21 version with regression analysis. Population of this research is manufactured company listed on the Indonesia Stock Exchange (BEI) in the period 2011-2014. Samples were collected by purposive sampling method and 10 companies are used for this research.The result of the test is CSR cost based on ethic motive have a positive significant effect on ROE and ROS (sig. &lt; 0,05). However, both CSR cost based on financial motive and altruistic motive have no-significant effect on ROE and ROS (sig. &gt; 0,05). For the future research, the researcher recommend that the company which listed on Indonesia Stock Exchange are more transparent and detailed information on the CSR include the activities, the CSR target, the cost that company spend and all the other data about CSR. Then, the company which do the CSR investment and transparent with the CSR report can attract other potential investor for the company, so that can make a positive effect on the financial statement.<br />Keywords: CSR Motive, Financial Motive, Ethic motive, Altruistic Motive

scholarly journals Corporate social responsibility of the Port of Gdynia

2018 ◽  
Vol 57 ◽  
pp. 01017
Author(s):  
Hanna Klimek ◽  
Janusz Dąbrowski
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Socially Responsible ◽  
Competitive Edge ◽  
The Past ◽  
The Social ◽  
Wide Range ◽  
Sea Ports ◽  
Corporate Social ◽  
And Storage

Corporate social responsibility (CSR) is a tool used by companies to establish positive relations with their surroundings and gain a competitive edge. This also relates to centres providing services, such as seaports. In the past, these served as loading/off-loading and storage stations as well as ship terminals. At present, they have become versatile complexes administering land and infrastructure as well as playing host to numerous enterprises which offer a wide range of services to carriers and freight forwarders. Not only individual businesses but also entire port service hubs can, or even should, be socially responsible nowadays. The topic of this research is the social responsibility of sea ports. This article will discuss the social responsibility of the Port of Gdynia. The objective is to present socially responsible actions taken by Gdynia Port Authority SA and the largest port operators and to assess the progress made on the implementation of CSR there.

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