scholarly journals How government withdrawal affects corporate social performance?

2022 ◽  
Vol 25 (1) ◽  
pp. 136-146
Author(s):  
Farman Ullah Khan ◽  
Junrui Zhang ◽  
Sajid Ullah ◽  
Muhammad Usman ◽  
Shahid Ali
Keyword(s):  
Social Engagement ◽  
Corporate Social Performance ◽  
Developing Economies ◽  
Social Performance ◽  
Negative Relationship ◽  
State Ownership ◽  
Political Connection ◽  
Policy Makers ◽  
Listed Firms ◽  
Corporate Social

This study aims to investigate whether government withdrawal affect corporate social responsibility (CSR) performance, and how CEO’s political connection moderates its relationship. We use sample data from Chinese listed firms over the 2010 to 2015 period to test our hypotheses. We find that decrease in state ownership through government withdrawal tends to negatively affect firms’ CSR performance, but the CEO’s political connection weakens its negative relationship and increases the firm’s likelihood towards CSR activities. Our findings imply that firm’s social engagement mainly result from high governmental involvement, and usually from political connections, because such firms are subject to close scrutiny by stakeholders and thus are more likely to improve social performance. Moreover, this research provides important implications to policy makers regarding the social outcomes of government withdrawal and the usefulness of firms’ political connection in developing economies like China. Este estudio tiene como objetivo investigar si la retirada del gobierno afecta al rendimiento de la responsabilidad social corporativa (RSC), y cómo la conexión política del CEO modera su relación. Utilizamos los datos de una muestra de empresas chinas que cotizan en bolsa durante el período 2010-2015 para comprobar nuestras hipótesis. Encontramos que la disminución de la propiedad estatal a través de la retirada del gobierno tiende a afectar negativamente a los resultados de RSC de las empresas, pero la conexión política del CEO debilita su relación negativa y aumenta la probabilidad de la empresa hacia las actividades de RSC. Nuestras conclusiones implican que el compromiso social de las empresas se debe principalmente a la alta participación gubernamental, y normalmente a las conexiones políticas, porque estas empresas están sometidas a un estrecho escrutinio por parte de las partes interesadas y, por lo tanto, es más probable que mejoren sus resultados sociales. Además, esta investigación ofrece importantes implicaciones para los responsables políticos en relación con los resultados sociales de la retirada del gobierno y la utilidad de la conexión política de las empresas en economías en desarrollo como China.

scholarly journals Stakeholder ratings and corporate financial performance: Socially responsible for what?

2013 ◽  
Vol 10 (4) ◽  
pp. 94-116 ◽  
Author(s):  
Daniela Venanzi
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Stakeholder Management ◽  
Social Performance ◽  
Negative Relationship ◽  
Corporate Financial Performance ◽  
Socially Responsible ◽  
Listed Firms ◽  
Key Stakeholders ◽  
Corporate Social

This paper aims at empirically supporting, in a cross-country and cross-industry analysis, the instrumental role of stakeholder management by adopting a disaggregated approach to the corporate social performance measurement. By using a sample of 250 European industrial listed firms, from 10 European countries, in the period 2001-2003, we find the following evidence: i) the firm is not socially responsible towards all stakeholders, but invests more in key-stakeholders, those who are (perceived as) more influential on its business and have a more valuable impact on its financial performance; ii) a null or weak significance of the relationship between corporate social performance (CSP) and corporate financial performance (CFP) in the whole sample hides highly significant opposite relationships in two separate sub-samples (i.e. firms with positive and negative relationship, respectively): the sign of the CSP-CFP link cannot be expected to be univocal, since the marginal reward-cost equilibrium of social investment is firm-specific.

scholarly journals Ownership Reduction in State-Owned Enterprises and Corporate Social Responsibility: Perspective from Secondary Privatization in China

2019 ◽  
Vol 11 (4) ◽  
pp. 1008 ◽  
Author(s):  
Farman Khan ◽  
Junrui Zhang ◽  
Muhammad Usman ◽  
Alina Badulescu ◽  
Muhammad Sial
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Research Question ◽  
State Ownership ◽  
Listed Firms ◽  
Using Data ◽  
Corporate Social ◽  
Share Structure

As an emerging economy, China modernized its economy via split-share structure reform. This reform changed the nature of ownership in state-owned enterprises (SOEs). Following this reform, we investigated the research question concerning how reductions in state ownership affect the corporate social responsibility (CSR) performance of listed firms. This study tests the hypotheses using data of Chinese listed firms between 2010 and 2015. Applying multiple regressions, we found a negative association between state reductions and CSR performance. We contribute to the existing literature by providing empirical evidence that those firms which reduce state holdings are not taking CSR activities seriously. Our study also sheds light on the worthiness and prominent status of large state owners of SOEs, as they are more likely to engage in social activities. This study provides fruitful implications for policy-makers and practitioners about state holdings, which may either hinder or enhance the corporate social performance.

scholarly journals Corporate Social Performance and Use of Debt: an Examination of Australian Companies

2021 ◽  
Vol 15 (4) ◽  
pp. 4-27
Author(s):  
Subba Reddy Yarram ◽  
Josie Fisher
Keyword(s):  
Conflict Resolution ◽  
Stakeholder Theory ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Negative Association ◽  
Short Term ◽  
Listed Firms ◽  
Australian Context ◽  
Corporate Social

This study examines whether the corporate social performance (CSP) activities of firms influence the structure of debt in the Australian context. Long-term debt is often associated with higher monitoring by lenders, which suggests that firms may benefit from using long-term debt strategically. Short-term debt arises from regular business dealings with a number of primary stakeholders such as customers, suppliers, employees and lenders. We propose in this study that businesses that are committed to improving CSP outcomes may reduce use of short-term debt contributing to building sustainable long-term relationships with the primary stakeholders. We therefore investigate whether firms that prioritise CSP favour long-term debt or short-term debt. Using a sample of Australian Securities Exchange (ASX) listed firms, this study finds that the level of CSP is not associated with long-term debt use, but there is a significant negative association between CSP and the short-term debt usage. This finding suggests that firms with stakeholder-friendly policies reduce their use of short-term debt rather than long-term debt. The reduced use of short-term debt helps resolve possible conflicts between the primary stakeholders and a firm, thus this study presents evidence supporting stakeholder theory and conflict-resolution hypothesis.

scholarly journals A Systematic Literature Review—Social Engagement from Business Perspective

Proceedings ◽  
2018 ◽  
Vol 2 (22) ◽  
pp. 1379
Author(s):  
Jana Švecová
Keyword(s):  
Literature Review ◽  
Financial Performance ◽  
Social Engagement ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Business Perspective ◽  
Enormous Amount ◽  
Corporate Social ◽  
The Relationship

The present paper offers a literature review of relevant empirical research articles dealing with the relationship between corporate social performance (CSP) and corporate financial performance (CFP) published during the last five-year period 2013–2018. The results identify that although there is enormous amount of relevant studies presenting an overall positive relationship, there is still a lack of consensus in published results. Therefore CSP-CFP nexus remains a line of inquiry and more researches are needed. The most obvious explanation are different approaches in measuring corporate social responsibility and financial performance.

scholarly journals Voluntary social performance disclosure and firm profitability of South African listed firms: Examining the complementary role of board independence and managerial ownership

2021 ◽  
Vol 24 (1) ◽  
Author(s):  
Frank Sampong ◽  
Na Song ◽  
Gilbert K. Amoako ◽  
Kingsley O. Boahene
Keyword(s):  
Corporate Governance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Executive Directors ◽  
Listed Firms ◽  
Complementary Role ◽  
Firm Profitability ◽  
Corporate Social

Background: There is growing literature promoting corporate governance mechanisms as important elements that could mitigate the inconclusive findings within the corporate social performance and firm profitability research. A key theoretical assumption within the extant literature that provides support for this proposition is that corporate social performance and firm profitability are organisational outcomes in the presence of good corporate governance.Aim: Firstly, the aim is to re-investigate voluntary social performance disclosure (SPD) and long-term profitability association from the perspective of international standards, using the Global Reporting Initiative G3.1 guidelines. Secondly, to examine the joint moderating effect of board independence and managerial ownership (MO) on the voluntary SPD and profitability nexus.Setting: The South Africa institutional setting, where recent corporate governance regimes require firms to voluntarily make corporate governance related disclosures on both shareholder-and stakeholder-related information is used as the study context.Method: Utilising manually extracted data of listed firms, over the period 2010 to 2015, the generalised least square regression and seemingly unrelated regression (with a 1-year lag as the main independent variable) are used to examine the stated hypotheses.Results: We found a positive association between voluntary SPD and long-term profitability. We also found that the presence of non-executive directors positively moderates the association between voluntary SPD and long-term profitability. Thirdly, the proportion of MO significantly positively moderates the association between voluntary SPD and long-term profitability. Lastly, the complementary role of the presence of non-executive directors and the proportion of MO significantly positively moderates the association between voluntary SPD and long-term profitability.Conclusion: This study finds support for scholarly theoretical arguments that organisational outcomes are largely possible in the presence of good corporate governance, which has a long-term implication for firms’ shareholder wealth maximisation. This study contributes to the ongoing research examining the notion of substitutive versus complementary effects of governance mechanisms, and a growing research literature on corporate social responsibility (CSR) disclosure from the perspective of international standardisation. This study therefore makes far-reaching contributions to the corporate governance and social responsibility literature in an African context.

scholarly journals Does Board Supervisory Quality Enhance Corporate Social Performance?-Evidence from Taiwanese Listed Firms

2017 ◽  
Vol 9 (1) ◽  
pp. 68
Author(s):  
Yaying Mary Chou Yeh ◽  
Wen-Chi Hsieh
Keyword(s):  
Social Capital ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Attendance Rate ◽  
Board Meeting ◽  
Public Firms ◽  
Listed Firms ◽  
Social Agenda ◽  
Corporate Social ◽  
Board Social Capital

This study uses Taiwanese public firms as a sample to examine if board supervisory quality enhances CSP. The present study uses four proxies for supervisory quality of board at group level: board meeting attendance rate, number of board meetings, social capital of the board and average training hours of directors. We obtain 348 CSR data from an international CSR rating agent and match them with double size non-CSR firms. We find that CSR firms exhibit significantly higher board attendance rate, board meeting frequency and board social capital than non-CSR firms. For CSR firms, board attendance rate and board meeting frequency positively impact CSR ratings, implying that board diligence is essential to monitoring management to achieve higher social objectives. However, board social capital and training significantly but negatively impact CSP, implying busy board and inexperienced board detriments CSP.Board success in CSR means directors must be passionate about the issues on CSR. Additionally, firms that are behind social agenda need to recruit resourceful directors to diversify information base for advises about stakeholder issues and trends. Firms that have taken steps in CSR activities should not recruit overly busy directors or inexperienced directors. Our paper provides both theoretical and practical implications.

scholarly journals The Determinants of ESG Rating in the Financial Industry: The Same Old Story or a Different Tale?

2020 ◽  
Vol 12 (16) ◽  
pp. 6398 ◽  
Author(s):  
Fabrizio Crespi ◽  
Milena Migliavacca
Keyword(s):  
World Wide ◽  
Corporate Social Performance ◽  
Focal Point ◽  
Linear Trend ◽  
Social Performance ◽  
Financial Industry ◽  
Policy Makers ◽  
Financial Firms ◽  
Corporate Social ◽  
Over Time

Corporate social performance (CSP) and, in particular, environmental, social and governance (ESG) ratings became a focal point for scholars, practitioners and policy makers over the last decade. In order to better understand the dynamics underlying CSP within the financial industry, we investigate its determinants. Adding to the debate regarding CSP antecedents, we draw on a world-wide sample of 727 financial firms operating in twenty-two countries within the period 2006–2017 and look for firm, country and temporal factors that affect CSP. The main results of our empirical analyses provide evidence that financial firms’ ESG scores are growing on a linear trend over time, and such tendency is enhanced by their size and profitability, together with the economic and social development of the country within which they operate. Our findings also show that the environmental, social and governance pillars follow independent patterns.

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