Are R&amp;D-Intensive firms also corporate social responsibility specialists? A multicountry study

Fu, Limin; Boehe, Dirk Michael; Orlitzky, Marc

doi:10.1016/j.respol.2020.104082

Cited by 38 publications

(50 citation statements)

References 86 publications

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“…The direct association between the control variables and CSR spend (Model 1) shows that most of the variables are significant and positively associated with the CSR except for leverage and R&D expenditure. These results support the studies by Surroca et al (2013) and Fu et al (2020), that firms under resource constraints spend less on CSR. In sum, resource constraints increase organizational pressures to choose between R&D and CSR in developing countries like India (Manogna, 2020).…”

Section: Empirical Results and Discussionsupporting

confidence: 91%

Ownership structure and corporate social responsibility in India: empirical investigation of an emerging market

Manogna

2021

RIBS

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Purpose Previous studies have examined the relationship between institutional investors and corporate social responsibility (CSR) engagement primarily for the case of developed nations. The purpose of this paper is to look at the association between different ownership categories and CSR spending of selected Indian firms within an emerging market context. Design/methodology/approach This study examines the motivations that guide the CSR strategies of different ownership groups. Random-effects Tobit panel regression is performed on a panel of BSE-listed non-financial Indian firms panel comprising of 5,313 firm year observations over a six-year period (2014-2019). Findings Heterogeneous behavior of institutional investors is revealed through the study. Different categories of institutional investors have different preferences for CSR spending of a firm. Lending institutes and foreign institutional investors (FIIs) are seen to support the CSR investments. However, mutual fund investors are seen to not influence the CSR spend by the firms. Further, the results show that family ownership, measured in terms of family shareholding, positively moderates the lending institutions and mutual funds toward CSR and does not impact the FIIs decision regarding the CSR investments. Practical implications The analysis has implications for both institutional investors and multinational firms. In the emerging market context, managers and owners who target long term strategies such as CSR, will benefit from increasing shareholdings of creditors (lending institutions). They can also take steps to improve their transparency and corporate governance structure so as to attract the foreign institutional investments. Originality/value Managers cannot ignore the heterogeneities of institutional investors in their investment decisions and hence CSR decisions need to align with those of different types of investors. This study adds to the existing literature by offering new empirical insights from the perspective of an emerging market, India.

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Section: Empirical Results and Discussionsupporting

confidence: 91%

Ownership structure and corporate social responsibility in India: empirical investigation of an emerging market

Manogna

2021

RIBS

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“…We used R&D intensity, measured as R&D divided by total sales, as a proxy for R&D (e.g., Fu, Boehe, and Orlitzky 2020; Gallego-Álvarez, Prado-Lorenzo, and García-Sánchez 2011). We used the Global Philanthropy Environment Index to measure NPE.…”

Section: Methodsmentioning

confidence: 99%

Synergy Versus Trade-Off: The Influence of National Philanthropic Environment and Industry on the Relationship Between Research and Development and Corporate Social Responsibility

Randrianasolo¹,

Семенов²

2021

Journal of International Marketing

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International marketing research has demonstrated that research and development (R&D) and corporate social responsibility (CSR) are firm capabilities that can lead to competitive advantages in the international marketplace. A synergy vs. tradeoff dilemma on the R&D/CSR relationship has emerged as an important topic in the literature. The synergy approach suggests a positive link, while the tradeoff approach suggests a negative link between R&D and CSR. The authors employ the resource-, institution-, and industry-based views to clarify this dilemma by examining two moderators at the country and industry levels. The authors envision that home country national philanthropic environment (NPE) influences whether managers should take the synergy or tradeoff approach because NPE reflects the institutional pressures for firms to be more philanthropic. Further, since research finds that CSR differs between manufacturing and service firms, this industry categorization is hypothesized to moderate the effects of NPE on the R&D/CSR relationship. Estimating a hierarchical linear model with a sample of 888 firms across 15 countries, the results show that in high NPE level countries, there is an R&D/CSR synergy, and in low NPE level countries, there is a tradeoff. Furthermore, these relationships are relevant only within service rather than manufacturing industries.

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“…Concretely speaking, to participate in CER management and have positive environmental effects, companies need to create new products or new technology to complete environmental protection targets, thereby promoting corporate technological progress and cost-saving innovations (Horbach, 2012;Lončar et al, 2019;Kraus et al, 2020). More importantly, as environmental-protection technologies may enable companies to reduce unit production costs and enhance sales, in the long run companies investing earlier in CER may have greater financial advantages, such as the improvement in ROA and ROE, which would make the stocks of the listed companies more attractive to investors (Flammer, 2015;Lee et al, 2016;Zhou et al, 2018;Singh et al, 2020;Fu et al, 2020).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Corporate Environmental Information Disclosure and Investor Response: Empirical Evidence from China's Capital Market

Meng

Zhang

2022

SSRN Journal

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Are R&D-Intensive firms also corporate social responsibility specialists? A multicountry study

Cited by 38 publications

References 86 publications

Ownership structure and corporate social responsibility in India: empirical investigation of an emerging market

Ownership structure and corporate social responsibility in India: empirical investigation of an emerging market

Synergy Versus Trade-Off: The Influence of National Philanthropic Environment and Industry on the Relationship Between Research and Development and Corporate Social Responsibility

Corporate Environmental Information Disclosure and Investor Response: Empirical Evidence from China's Capital Market

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