Assessing whether corporate social responsibility influence corporate value

Chen, Roger C. Y.; Lee, Chen-Hsun

doi:10.1080/00036846.2017.1313949

Cited by 21 publications

(12 citation statements)

References 20 publications

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“…This paper explores the impact of CSR on organizational resilience, and therefore provides empirical evidence of the relationship between CSR and corporate performance from a long-term perspective. The results show that the impact of CSR on corporate value is positive and cumulative or lagging over time [108]. Therefore, paying attention to this kind of activities will contribute to the long-term survival and development of enterprises [6,110].…”

Section: Theoretical Contributionsmentioning

confidence: 93%

“…Second, this paper enriches the body of literature on the economic consequences of CSR. Prior work on CSR focuses mainly on its impact on a firm's short-term performance, which has been proved to be positive, negative or even nonsignificant in relevant studies [107][108][109]. These confusing and conflicting findings may be due to the fact that CSR, in a short term, increases a firm's operational costs and deviates from the goal of maximizing business interests [6].…”

Section: Theoretical Contributionsmentioning

confidence: 99%

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What Dimension of CSR Matters to Organizational Resilience? Evidence from China

Wei

et al. 2019

Sustainability

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Prior work on corporate social responsibility (CSR) has focused mainly on its effects on the short-term performance of firms from developed countries. In this article, we shed light on its effects on organizational resilience, which is defined as the firm's ability to positively cope with environmental turbulence, and operationalized by long-term, improved sales growth and financial volatility. In line with this operationalization, we adopt CSR's performance-enhancing and performance-insuring mechanisms to disentangle the relationship between CSR and organizational resilience. Furthermore, we divide CSR into five dimensions, namely shareholder, employee, business, society and environment-related CSR, and respectively examine their impacts on organizational resilience. The empirical study on a large sample of public firms in China from 2010 to 2017 shows that CSR as a whole significantly increases the firms' long-term growth and reduces their financial volatility. As for the five specific dimensions, they all have a significant negative effect on financial volatility, and the employee, business, environment-related CSR are positively associated with long-term growth. Yet, the empirical results did not indicate significant associations between shareholder and society-related CSR and firms' long-term growth. This study first explores the impacts of CSR's different dimensions on organizational resilience. Also, we contribute to enriching the literature on CSR by examining the long-term performance-insuring effect of CSR with a quantitative analysis of emerging markets. Finally, we discuss some important managerial implications, as well as promising directions for future research.2 of 23 conditions, unestablished industrial structures, and the intense, chaotic competition brought by rapid development, Chinese enterprises are likely to face more changes and uncertainties in their business environment, which makes them more vulnerable than those from developed countries. Second, as the concern about CSR in China comes far later than that in developed countries, the effect of Chinese CSR on organizational resilience may be different. The Kinder, Lydenberg, and Domini (KLD) database, for example, began to internationally provide ratings of corporate social performance in 1991. While, the first official research report on Chinese CSR was released in 2009, and then Chinese listed companies were required to issue their annual CSR reports. In line with this, we aim at providing some new insights of CSR and its effects on organizational resilience with evidence from emerging markets.In doing so, we first clarify the conceptualization and operationalization of organizational resilience. Defined as the ability of an organization to respond positively to environmental changes, organizational resilience is a latent, unobservable construct usually measured by its outcomes [6]. The most desired outcome of organizational resilience recognized in extant literature is a firm's persistent superior performance in the changing business en...

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Section: Theoretical Contributionsmentioning

confidence: 93%

Section: Theoretical Contributionsmentioning

confidence: 99%

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

Wei

et al. 2019

Sustainability

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“…When the firm's value is low, the first concern is survival and resistance to additional cost increases (Chen and Lee, 2017).…”

Section: The Moderating Effect Of Firm Valuementioning

confidence: 99%

Corporate social responsibility, internal control, and firm financial performance

Zhang

2023

Front. Psychol.

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As the global challenges facing sustainability issues continue to expand, the issues of corporate social responsibility (CSR) and ethical governance have become the focus of continued academic attention. CSR is important for firms to enhance their reputation and promote sustainable development. Using A-share listed firms from 2012 to 2019, this study empirically investigates the effect of CSR fulfillment on internal control and firm financial performance by constructing a regression model. The results show that there is a positive relationship between CSR and firm financial performance. Therefore, CSR fulfillment effectively improves the firm financial performance. Furthermore, this study finds that there is a partial mediating effect of internal control between CSR fulfillment and firm financial performance. Therefore, good internal control leads the firm to implement CSR, strengthen management, and improve financial performance. Further results show that the nature of ownership plays a moderating role in the mediating effect of internal control. This study enriches the mechanism of CSR on firm financial performance. Furthermore, it provides a theoretical basis for Chinese listed firms to fulfill CSR, improve ownership, and strengthen internal control.

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“…It is noteworthy that, based on the positive and negative perspectives of CSR engagement, studies regarding the association between CSR engagement and firm performance document conflicting results (Ahsan et al , 2022; Chen and Lee, 2017). Ahsan et al (2022) document a negative impact of CSR on firm value.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Corporate social responsibility and firm market performance: the role of product market competition and firm life cycle

Al‐Dhamari

Al‐Gamrh

Farooque

et al. 2022

ARA

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PurposeThis study empirically investigates the role of product market competition and mature-stage firm life cycle on the relation between corporate social responsibility (CSR) and market performance in an emerging market context – Malaysia.Design/methodology/approachThe authors construct a comprehensive CSR index toward the economy, environment and society (EES) and apply both Ordinary Least Squares (OLS) and Two-Stage Least Squares (2SLS) instrumental variables (IV) approaches to test the hypotheses of the study.FindingsThe authors find that EES-based CSR generally enhances firms' market performance; however, the level of product market competition undermines the market performance of socially and economically responsible firms. In addition, the study results indicate that mature-stage firm life cycle with more involvement in CSR activities shows better market performance. However, the endogeneity check of CSR suggests that both CSR and mature-stage firms are mutually exclusive in influencing market performance. The study findings are robust to alternative measures and different identifications of high and low default risk situations of sample firms.Practical implicationsThis study carries practical policy implications for the listed firms, regulators and stakeholders in general. For example, regulatory bodies may promote greater involvement in CSR activities by listed companies in the Malaysian stock market. Investors and other market participants should be aware of factors influencing socially responsible firms' market performance such as the corporate life cycle and the level of competition in product markets.Originality/valueThis research work responds to the call of regulatory bodies in Malaysia at a time when the Malaysian economy is under threat of environmental distraction practices by the palm oil industry and import ban by the largest export market, i.e. the European Union by 2030. The study also contributes to the theoretical literature by refining the moderating role of product market competition and mature-stage life cycle on the relationship between CSR and market performance from the perspectives of resource-based and stakeholder theories in emerging economy settings.

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Assessing whether corporate social responsibility influence corporate value

Cited by 21 publications

References 20 publications

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

Corporate social responsibility, internal control, and firm financial performance

Corporate social responsibility and firm market performance: the role of product market competition and firm life cycle

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