A Bi-Directional Examination of the Relationship Between Corporate Social Responsibility Ratings and Company Financial Performance in the European Context

Quéré, Bertrand P.; Nouyrigat, Geneviève; Baker, C. Richard

doi:10.1007/s10551-015-2998-1

Cited by 36 publications

(26 citation statements)

References 24 publications

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“…Arguably, improved financial performance may result in a surplus of resources, facilitating firms’ ability to invest in CSR. Longitudinal data collection is commonly offered as a solution to concerns about causality and potential common method bias ( Quéré, Nouyrigat, & Baker, 2018 ; Rindfleisch et al., 2008 ). For example, Garcia-Castro et al.…”

Section: Discussionmentioning

confidence: 99%

Is CSR the panacea for SMEs? A study of socially responsible SMEs during economic crisis

Μαγρίζος

Apospori

Carrigan

et al. 2021

European Management Journal

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Section: Discussionmentioning

confidence: 99%

Is CSR the panacea for SMEs? A study of socially responsible SMEs during economic crisis

Μαγρίζος

Apospori

Carrigan

et al. 2021

European Management Journal

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“…The advantage to use Vigeo ratings is to provide new information on this relationship in using data extracted and collected with another methodology and others dimensions of SR, with an objective to provide new conclusions and new issues in a worldwide context when KLD database provides only American data. Moreover, recent studies use Vigeo database (Girerd-Potin et al, 2014;Liang and Renneboog, 2016;Quéré et al, 2018).…”

Section: Samplementioning

confidence: 99%

The Effects of Socially Responsible Dimensions on Risk Dynamics and Risk Predictability: A Value-at-Risk Perspective

Viviani

Fall

Revelli

2019

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N umerous studies investigate the relationship between socially responsible (SR) dimensions or practices and company risk at both the theoretical and empirical level. Theoretically, due to better balancing the interests of the various stakeholders (Mishra and Modi, 2013), greater reputation (Godfrey et al., 2005) and less information asymmetry (Lahrech, 2011), companies with higher SR practices should be less risky and more resilient in times of crisis. However, as the risk measures (total risk, systematic risk and idiosyncratic risk), methodologies (for instance, measures of the various dimensions of social responsibility) and samples are heterogeneous, extant empirical studies do not provide clear evidence of these claims. Nonetheless, such studies suggest a slightly negative relationship between SR scores or ratings and financial risk measured as total risk (Jo and

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“…Vigeo is the European leader in CSR ratings and their registered office is located in France. It has recently been used by several researchers (e.g., Ferrell, Liang, & Renneboog, 2015;Girerd-Potin, Jimenez-Garces, & Louvet, 2014;Liang & Renneboog, 2016;Quéré, Nouyrigat, & Baker, 2015) because of the reliability of its data and the appliance of a check-the-box approach (Quéré et al, 2015) that consists in rating a firm based on its compliance with the conventions, guidelines, and declarations of international organizations such as the UN, ILO, and OECD. Vigeo rates firms from different countries as compared to KLD stats, which focus on the American market.…”

Section: Csr Datamentioning

confidence: 99%

Corporate social responsibility and firm financial risk reduction: On the moderating role of the legal environment

Benlemlih¹,

Girerd‐Potin

2017

Business Fin & Account

139

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Approaching the institutional environment through its regulative component, we distinguish between shareholder‐oriented and stakeholder‐oriented countries. Identifying first this classification with the distinction between common law versus civil law countries and using a large sample of 5,716 firm‐year observations that represents 1,169 individual firms in 25 countries between 2001 and 2011, we show that Corporate Social Responsibility (CSR) significantly reduces firms’ idiosyncratic risk in civil law countries but not in common law countries. Using then a more direct classification based on shareholder and employee protection scores, our findings suggest that CSR negatively affects firms’ idiosyncratic and systematic risks only in less shareholder‐oriented and more stakeholder‐oriented countries, respectively. These findings are similar in the different components of CSR with two notable exceptions: a high score in corporate governance reduces firm risk only in common law countries, and community involvement increases idiosyncratic risk in more shareholder‐oriented and less stakeholder‐oriented countries, respectively. Taken together, our results strongly support the view that the relationship between CSR and financial risk is moderated by the institutional context of the firm.

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A Bi-Directional Examination of the Relationship Between Corporate Social Responsibility Ratings and Company Financial Performance in the European Context

Cited by 36 publications

References 24 publications

Is CSR the panacea for SMEs? A study of socially responsible SMEs during economic crisis

Is CSR the panacea for SMEs? A study of socially responsible SMEs during economic crisis

The Effects of Socially Responsible Dimensions on Risk Dynamics and Risk Predictability: A Value-at-Risk Perspective

Corporate social responsibility and firm financial risk reduction: On the moderating role of the legal environment

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