Air pollution is a growing hazard to human health. This study examines whether air pollution affects the formation of corporate human capital and thereby firm performance. We find that people exhibit an intention to look for jobs in less polluted areas when air pollution is high in their location. This suggests that individuals arrange their lives at least partially in response to air pollution. Consistent with this hypothesis, we find that the level of skilled executives and employees at a firm drops significantly when information on pollution in the firm’s location is accessible in real time and when the pollution level in the firm’s location increases, especially in locations where air pollution poses greater health concerns. In addition, parallel reductions in firm productivity and value are found and become more salient when firms have a greater dependence on human capital.
{"title":"Brain Drain: The Impact of Air Pollution on Firm Performance","authors":"Shuyu Xue, Bohui Zhang, Xiaofeng Zhao","doi":"10.2139/ssrn.3490344","DOIUrl":"https://doi.org/10.2139/ssrn.3490344","url":null,"abstract":"Air pollution is a growing hazard to human health. This study examines whether air pollution affects the formation of corporate human capital and thereby firm performance. We find that people exhibit an intention to look for jobs in less polluted areas when air pollution is high in their location. This suggests that individuals arrange their lives at least partially in response to air pollution. Consistent with this hypothesis, we find that the level of skilled executives and employees at a firm drops significantly when information on pollution in the firm’s location is accessible in real time and when the pollution level in the firm’s location increases, especially in locations where air pollution poses greater health concerns. In addition, parallel reductions in firm productivity and value are found and become more salient when firms have a greater dependence on human capital.","PeriodicalId":210981,"journal":{"name":"Corporate Governance: Social Responsibility & Social Impact eJournal","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-09-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126862558","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Seraina C. Anagnostopoulou, A. Tsekrekos, G. Voulgaris
Abstract We examine the association between accounting conservatism, expressed in the form of asymmetric timeliness of recognition of economic gains and losses, and corporate social responsibility (CSR). We provide evidence that, under unfavorable macroeconomic conditions and financial constraints, as well as increased levels of outside pressure from debtholders and equity holders, catering for capital providers through conservative reporting becomes a managerial priority over engagement in CSR. Our results overall indicate that, for our whole sample period (starting in the early 2000s), higher levels of conservatism are negatively associated with a CSR orientation shown by firms; however, our analysis also indicates a significant reversing trend regarding the effect of conservatism on CSR, coinciding with the post-financial-crisis period. The findings are robust to a number of specifications and tests, including the use of an instrumental variable approach explicitly addressing endogeneity biases related to reverse causality concerns. Our study suggests that, under monitoring pressure from financial stakeholders, firms prioritize commitment to accounting conservatism over the needs of non-financial stakeholders and other interest groups.
{"title":"Accounting Conservatism and Corporate Social Responsibility","authors":"Seraina C. Anagnostopoulou, A. Tsekrekos, G. Voulgaris","doi":"10.2139/ssrn.3677879","DOIUrl":"https://doi.org/10.2139/ssrn.3677879","url":null,"abstract":"Abstract We examine the association between accounting conservatism, expressed in the form of asymmetric timeliness of recognition of economic gains and losses, and corporate social responsibility (CSR). We provide evidence that, under unfavorable macroeconomic conditions and financial constraints, as well as increased levels of outside pressure from debtholders and equity holders, catering for capital providers through conservative reporting becomes a managerial priority over engagement in CSR. Our results overall indicate that, for our whole sample period (starting in the early 2000s), higher levels of conservatism are negatively associated with a CSR orientation shown by firms; however, our analysis also indicates a significant reversing trend regarding the effect of conservatism on CSR, coinciding with the post-financial-crisis period. The findings are robust to a number of specifications and tests, including the use of an instrumental variable approach explicitly addressing endogeneity biases related to reverse causality concerns. Our study suggests that, under monitoring pressure from financial stakeholders, firms prioritize commitment to accounting conservatism over the needs of non-financial stakeholders and other interest groups.","PeriodicalId":210981,"journal":{"name":"Corporate Governance: Social Responsibility & Social Impact eJournal","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130709955","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Subject to important qualifications, corporate decision-makers are duty-bound to maximize shareholder value. However, there is reason to believe corporate decision-makers are allowing their political biases to corrupt their decision-making. This essay posits two related fact patterns that should concern advocates of good corporate governance. The first occurs when decision-makers expressly disavow any duty to maximize shareholder value, such as when Apple CEO Tim Cook told shareholders, “When we work on making our devices accessible by the blind, I don’t consider the bloody ROI [return on investment],” or when Ed Stack, the chairman and chief executive of Dick’s Sporting Goods, decided that Dick’s should “take a stand” on gun violence by foregoing the sale of assault-style weapons, and said in connection therewith, “I don’t really care what the financial implication is.” This type of situation arguably breaches at least the duties of care and good faith without any change to current law. Importantly, breach of the duty of good faith may not be immunized by the seemingly ubiquitous contractual waivers of the duty of care. The second relevant fact pattern occurs when a decision-maker does not expressly disavow shareholder wealth maximization, but rather points to other arguably political goals as the basis for the decision, and is silent as to the impact on shareholder value. For example, when Gillette launched its advertising campaign challenging “toxic masculinity,” it publicly justified the decision not on the basis of an expectation of increasing sales, but rather on the grounds that it wanted to spark "a lot of passionate dialogue" and get people "to stop and think about what it means to be our best selves." In order to address the corrupting influence of political bias to the extent it is manifest in this latter type of conduct, a change in the law may be required. This Essay argues that a ready blueprint for such a change already exists in the response of the Delaware judiciary to the omnipresent specter of directorial self-interest when adopting anti-takeover defenses. Specifically, cases like Unocal Corp. v. Mesa Petroleum Co. apply enhanced judicial scrutiny in such cases before granting decision-makers the benefit of the deferential business judgment rule. Finally, this Essay addresses criticisms of the proposed approach, including the view that the proposed approach would subject too many business decisions to an inefficient risk of enhanced scrutiny, and that the challenged proclamations should be treated as mere puffery or are perhaps even necessary to maximize shareholder value.
{"title":"Corporate Governance and the Omnipresent Specter of Political Bias: The Duty to Calculate ROI","authors":"S. Padfield","doi":"10.2139/ssrn.3623407","DOIUrl":"https://doi.org/10.2139/ssrn.3623407","url":null,"abstract":"Subject to important qualifications, corporate decision-makers are duty-bound to maximize shareholder value. However, there is reason to believe corporate decision-makers are allowing their political biases to corrupt their decision-making. This essay posits two related fact patterns that should concern advocates of good corporate governance. The first occurs when decision-makers expressly disavow any duty to maximize shareholder value, such as when Apple CEO Tim Cook told shareholders, “When we work on making our devices accessible by the blind, I don’t consider the bloody ROI [return on investment],” or when Ed Stack, the chairman and chief executive of Dick’s Sporting Goods, decided that Dick’s should “take a stand” on gun violence by foregoing the sale of assault-style weapons, and said in connection therewith, “I don’t really care what the financial implication is.” This type of situation arguably breaches at least the duties of care and good faith without any change to current law. Importantly, breach of the duty of good faith may not be immunized by the seemingly ubiquitous contractual waivers of the duty of care. The second relevant fact pattern occurs when a decision-maker does not expressly disavow shareholder wealth maximization, but rather points to other arguably political goals as the basis for the decision, and is silent as to the impact on shareholder value. For example, when Gillette launched its advertising campaign challenging “toxic masculinity,” it publicly justified the decision not on the basis of an expectation of increasing sales, but rather on the grounds that it wanted to spark \"a lot of passionate dialogue\" and get people \"to stop and think about what it means to be our best selves.\" In order to address the corrupting influence of political bias to the extent it is manifest in this latter type of conduct, a change in the law may be required. This Essay argues that a ready blueprint for such a change already exists in the response of the Delaware judiciary to the omnipresent specter of directorial self-interest when adopting anti-takeover defenses. Specifically, cases like Unocal Corp. v. Mesa Petroleum Co. apply enhanced judicial scrutiny in such cases before granting decision-makers the benefit of the deferential business judgment rule. Finally, this Essay addresses criticisms of the proposed approach, including the view that the proposed approach would subject too many business decisions to an inefficient risk of enhanced scrutiny, and that the challenged proclamations should be treated as mere puffery or are perhaps even necessary to maximize shareholder value.","PeriodicalId":210981,"journal":{"name":"Corporate Governance: Social Responsibility & Social Impact eJournal","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132748940","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Using panel data set from companies listed on the Nairobi Securities Exchange in Kenya, a developing country, this paper examines the potential influence of corporate social responsibility disclosure (CSRD) on corporate financial performance. Using data from annual reports, CSRD information was collected for the period 2007-2015 using quantitative content analysis while financial performance data was collected for the period 2008-2016, a one-year lag behind CSRD data. Control variables were firm size, industry type and leverage. There was found to be no statistically significant impact of CSRD on financial performance. Since neutrality of the relationship is empirically proven, the conclusion is that CSRD has little or no contribution to financial performance and the implication is that effective financial reporting for companies listed on the NSE does not include reporting on CSR activities. Theoretically the study proposes that unequal controlling strengths of different stakeholders be assumed under the stakeholder theory for application within different national contexts in order for managers to be able to make the necessary tradeoffs among competing stakeholders.
{"title":"Corporate Social Responsibility Disclosure and Financial Performance of Firms in Kenya: A Stakeholder Approach","authors":"Robert King’wara","doi":"10.5296/ber.v10i3.17382","DOIUrl":"https://doi.org/10.5296/ber.v10i3.17382","url":null,"abstract":"Using panel data set from companies listed on the Nairobi Securities Exchange in Kenya, a developing country, this paper examines the potential influence of corporate social responsibility disclosure (CSRD) on corporate financial performance. Using data from annual reports, CSRD information was collected for the period 2007-2015 using quantitative content analysis while financial performance data was collected for the period 2008-2016, a one-year lag behind CSRD data. Control variables were firm size, industry type and leverage. There was found to be no statistically significant impact of CSRD on financial performance. Since neutrality of the relationship is empirically proven, the conclusion is that CSRD has little or no contribution to financial performance and the implication is that effective financial reporting for companies listed on the NSE does not include reporting on CSR activities. Theoretically the study proposes that unequal controlling strengths of different stakeholders be assumed under the stakeholder theory for application within different national contexts in order for managers to be able to make the necessary tradeoffs among competing stakeholders.","PeriodicalId":210981,"journal":{"name":"Corporate Governance: Social Responsibility & Social Impact eJournal","volume":"235 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122616757","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Over the past two decades, the M&A advisory industry has seen an increasing presence of boutique banks, whose market share reached over 40% in 2018. In this paper, we examine whether and how labor mobility contributes to the rise of boutique M&A advisors. Using several novel datasets containing deal-advising history and career paths of individual investment bankers, we show that high-performing individuals are more likely to migrate from their large, bulge bracket employers to boutique banks. Following their transition, the performance of losing (gaining) banks deteriorates (improves) in the specialized industries of these individuals. To establish causality, we exploit the cross-department subsidization within bulge bracket banks as a plausibly exogenous shock to the supply of M&A bankers to boutique advisors. When exploring potential channels, we find that both former clients and former colleagues migrate with the high-performing bankers who have transitioned to boutique firms. Finally, the rise of boutique banks is accompanied by a better deal outcome for their clients. Boutique banks also appear to foster the human capital development of their high-quality employees to a greater extent than bulge bracket banks. Our findings highlight the role of human capital transition in aggregating and redrawing the boundary of M&A advisory firms, and consequently, affecting how deals are advised in the market for corporate control.
{"title":"Big Fish in Small Ponds: Human Capital Migration and the Rise of Boutique Banks","authors":"Janet Gao, Wenyu Wang, Xiaoyun Yu","doi":"10.2139/ssrn.3496076","DOIUrl":"https://doi.org/10.2139/ssrn.3496076","url":null,"abstract":"Over the past two decades, the M&A advisory industry has seen an increasing presence of boutique banks, whose market share reached over 40% in 2018. In this paper, we examine whether and how labor mobility contributes to the rise of boutique M&A advisors. Using several novel datasets containing deal-advising history and career paths of individual investment bankers, we show that high-performing individuals are more likely to migrate from their large, bulge bracket employers to boutique banks. Following their transition, the performance of losing (gaining) banks deteriorates (improves) in the specialized industries of these individuals. To establish causality, we exploit the cross-department subsidization within bulge bracket banks as a plausibly exogenous shock to the supply of M&A bankers to boutique advisors. When exploring potential channels, we find that both former clients and former colleagues migrate with the high-performing bankers who have transitioned to boutique firms. Finally, the rise of boutique banks is accompanied by a better deal outcome for their clients. Boutique banks also appear to foster the human capital development of their high-quality employees to a greater extent than bulge bracket banks. Our findings highlight the role of human capital transition in aggregating and redrawing the boundary of M&A advisory firms, and consequently, affecting how deals are advised in the market for corporate control.","PeriodicalId":210981,"journal":{"name":"Corporate Governance: Social Responsibility & Social Impact eJournal","volume":"167 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131451659","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This research examined the effects of the dimensions of corporate social responsibility on customer loyalty of consumer goods companies in Nigeria. The quantitative and ex post facto research designs were found appropriate for the study. Secondary source of data collection via panel data was collected using corporate social responsibility checklist and by extraction from annual reports and accounts of listed consumer goods companies in Nigeria. Inferential statistics of multiple regressions were employed to attain the research objectives. Eviews 10 was the statistical package used for data analysis. The effect of corporate social responsibility towards the community on customer loyalty is positive and significant but this effect is insignificant with other dimensions of corporate social responsibility. The results also showed a positive and significant effect of company size on customer loyalty but this effect was insignificant with age of the company and leverage. The paper recommends that consumer goods companies in Nigeria should embrace corporate social responsibility towards the community if they wish to reap benefit of customer loyalty.
{"title":"The Dimensions of Corporate Social Responsibility and Customer Loyalty of Consumer Goods Companies in Nigeria","authors":"Wirnkar Alphonsius Dzeawuni","doi":"10.2139/ssrn.3557813","DOIUrl":"https://doi.org/10.2139/ssrn.3557813","url":null,"abstract":"This research examined the effects of the dimensions of corporate social responsibility on customer loyalty of consumer goods companies in Nigeria. The quantitative and ex post facto research designs were found appropriate for the study. Secondary source of data collection via panel data was collected using corporate social responsibility checklist and by extraction from annual reports and accounts of listed consumer goods companies in Nigeria. Inferential statistics of multiple regressions were employed to attain the research objectives. Eviews 10 was the statistical package used for data analysis. The effect of corporate social responsibility towards the community on customer loyalty is positive and significant but this effect is insignificant with other dimensions of corporate social responsibility. The results also showed a positive and significant effect of company size on customer loyalty but this effect was insignificant with age of the company and leverage. The paper recommends that consumer goods companies in Nigeria should embrace corporate social responsibility towards the community if they wish to reap benefit of customer loyalty.","PeriodicalId":210981,"journal":{"name":"Corporate Governance: Social Responsibility & Social Impact eJournal","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129732826","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The unobservable nature of the national culture is one of the main limits of research studying the impact of values systems’ in management sciences. This is why we aim in this study to identify a measure to three cultural dimensions namely, individualism (IND), masculinity (MASC) and long-term orientation (LTO). Our methodology is based on structural equation modeling (SEM) under LISREL approach, where latent variables are economic and demographic characteristics. Findings for the cross-national study over a period of 7 years including Tunisia, France, and Canada show that ecological indicators are able to determine studied cultural dimensions. However, due to the dynamic character of culture, some studied indicators are no longer the same as identified in prior studies.
{"title":"Measuring Cultural Dimensions for Cross-Cultural Management: Corporate Governance Outlook","authors":"R. Riahi, F. Hamouda, J. Henchiri","doi":"10.22495/cocv17i2art13","DOIUrl":"https://doi.org/10.22495/cocv17i2art13","url":null,"abstract":"The unobservable nature of the national culture is one of the main limits of research studying the impact of values systems’ in management sciences. This is why we aim in this study to identify a measure to three cultural dimensions namely, individualism (IND), masculinity (MASC) and long-term orientation (LTO). Our methodology is based on structural equation modeling (SEM) under LISREL approach, where latent variables are economic and demographic characteristics. Findings for the cross-national study over a period of 7 years including Tunisia, France, and Canada show that ecological indicators are able to determine studied cultural dimensions. However, due to the dynamic character of culture, some studied indicators are no longer the same as identified in prior studies.","PeriodicalId":210981,"journal":{"name":"Corporate Governance: Social Responsibility & Social Impact eJournal","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114076029","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We exploit a unique setting to examine how managerial and economic connections affect the current and former subsidiaries (“subsidiaries”) of a parent firm undergoing a restatement and bankruptcy. The demise of Enron and the varying nature of ties between Enron and its four publicly traded subsidiaries allow us to examine if capital market reactions for each of the subsidiaries surrounding Enron’s failure vary with the nature of their connections to Enron. We observe no significant differences in contemporaneous market reaction regardless of the nature and strength of connections between Enron and the subsidiaries, providing two main insights. First, over the year following the Enron events, those subsidiaries with ownership or accounting ties but with weak economic ties performed in-line with the industry, consistent with the lack of a differential market reaction across these sets of firms. This result contrasts with recent studies finding evidence of manager fixed effects affecting accounting choices. Second, we find that Enron’s most economically connected subsidiary (predictably) went bankrupt shortly after Enron, suggesting a market under-reaction at the time of the Enron events. Additional analysis provides some limited evidence that low institutional ownership or slow analyst forecast updating partly explains this under-reaction. Our study adds to the literature on restatements, management reputation effects, peer information transfer, and the market’s ability to react to specific fundamental information.
{"title":"Sins of the Father: The Effect of a Parent Firm's Accounting Misconduct on Current and Former Subsidiaries","authors":"Steven Utke, Jingyu Xu","doi":"10.2139/ssrn.3516833","DOIUrl":"https://doi.org/10.2139/ssrn.3516833","url":null,"abstract":"We exploit a unique setting to examine how managerial and economic connections affect the current and former subsidiaries (“subsidiaries”) of a parent firm undergoing a restatement and bankruptcy. The demise of Enron and the varying nature of ties between Enron and its four publicly traded subsidiaries allow us to examine if capital market reactions for each of the subsidiaries surrounding Enron’s failure vary with the nature of their connections to Enron. We observe no significant differences in contemporaneous market reaction regardless of the nature and strength of connections between Enron and the subsidiaries, providing two main insights. First, over the year following the Enron events, those subsidiaries with ownership or accounting ties but with weak economic ties performed in-line with the industry, consistent with the lack of a differential market reaction across these sets of firms. This result contrasts with recent studies finding evidence of manager fixed effects affecting accounting choices. Second, we find that Enron’s most economically connected subsidiary (predictably) went bankrupt shortly after Enron, suggesting a market under-reaction at the time of the Enron events. Additional analysis provides some limited evidence that low institutional ownership or slow analyst forecast updating partly explains this under-reaction. Our study adds to the literature on restatements, management reputation effects, peer information transfer, and the market’s ability to react to specific fundamental information.","PeriodicalId":210981,"journal":{"name":"Corporate Governance: Social Responsibility & Social Impact eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130630829","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-12-30DOI: 10.35609/afr.2019.4.4(3)
Silvy Christina, Fanny Anggraeni
Objective – The business world requires that companies not only focus on management and owners, but also that they pay attention to the sustainability of the social environment. This concept is better known as Corporate Social Responsibility. The purpose of this study is to obtain empirical evidence about the factors which influence corporate social responsibility. Methodology/Technique – The independent variables used in this research are: board size, firm size, profitability, liquidity, public ownership, and firm age. The objects used in this study are non-financial companies listed on the Indonesian Stock Exchange (IDX) between 2016 and 2018. The data selected as a research sample of 183 non-financial companies. Sample selection procedures can be obtained from the results of purposive sampling. Findings – The results show that board size, firm size, and profitability all have an influence on corporate social responsibility disclosure. On the other hand, liquidity, public ownership, and firm age have no influence on corporate social responsibility. Type of Paper: Empirical Keywords: Corporate Social Responsibility; Board Size; Firm Size; Profitability; Liquidity; Public Ownership; Firm Age. Reference to this paper should be made as follows: Christina, S; Anggraeni, F; 2019. Do Financial Ratios and Financial Characteristics Affect Corporate Social Responsibility Disclosure?, Acc. Fin. Review 4 (4): 114 – 119 https://doi.org/10.35609/afr.2019.4.4(3)
{"title":"Do Financial Ratios and Financial Characteristics Affect Corporate Social Responsibility Disclosure?","authors":"Silvy Christina, Fanny Anggraeni","doi":"10.35609/afr.2019.4.4(3)","DOIUrl":"https://doi.org/10.35609/afr.2019.4.4(3)","url":null,"abstract":"Objective – The business world requires that companies not only focus on management and owners, but also that they pay attention to the sustainability of the social environment. This concept is better known as Corporate Social Responsibility. The purpose of this study is to obtain empirical evidence about the factors which influence corporate social responsibility.\u0000Methodology/Technique – The independent variables used in this research are: board size, firm size, profitability, liquidity, public ownership, and firm age. The objects used in this study are non-financial companies listed on the Indonesian Stock Exchange (IDX) between 2016 and 2018. The data selected as a research sample of 183 non-financial companies. Sample selection procedures can be obtained from the results of purposive sampling.\u0000Findings – The results show that board size, firm size, and profitability all have an influence on corporate social responsibility disclosure. On the other hand, liquidity, public ownership, and firm age have no influence on corporate social responsibility.\u0000Type of Paper: Empirical\u0000Keywords: Corporate Social Responsibility; Board Size; Firm Size; Profitability; Liquidity; Public Ownership; Firm Age.\u0000\u0000Reference to this paper should be made as follows: Christina, S; Anggraeni, F; 2019. Do Financial Ratios and Financial Characteristics Affect Corporate Social Responsibility Disclosure?, Acc. Fin. Review 4 (4): 114 – 119 https://doi.org/10.35609/afr.2019.4.4(3)","PeriodicalId":210981,"journal":{"name":"Corporate Governance: Social Responsibility & Social Impact eJournal","volume":"96 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116990729","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this study is to investigate the relationship between corporate social responsibility and firm performance in China. We have used the sample of A-share listed firms from Shenzhen and Shanghai Stock Exchange for the period 2011 to 2017. We used pooled ordinary least squares (OLS) regression as a baseline methodology. We find that corporate social responsibility has a significantly positive effect on firm performance in China. Our results suggest that Chinese companies having better financial performance undertake more CSR reporting. This paper contributes to the existing literature by investigating the effect of firm performance on CSR reporting of Chinese listed companies.
{"title":"The Relationship between Corporate Social Responsibility and Firm Performance in China","authors":"M. Rahman, Yuzheng Fang","doi":"10.22495/rgcv9i4p4","DOIUrl":"https://doi.org/10.22495/rgcv9i4p4","url":null,"abstract":"The purpose of this study is to investigate the relationship between corporate social responsibility and firm performance in China. We have used the sample of A-share listed firms from Shenzhen and Shanghai Stock Exchange for the period 2011 to 2017. We used pooled ordinary least squares (OLS) regression as a baseline methodology. We find that corporate social responsibility has a significantly positive effect on firm performance in China. Our results suggest that Chinese companies having better financial performance undertake more CSR reporting. This paper contributes to the existing literature by investigating the effect of firm performance on CSR reporting of Chinese listed companies.","PeriodicalId":210981,"journal":{"name":"Corporate Governance: Social Responsibility & Social Impact eJournal","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-11-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131569800","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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