Can core competence help enterprises to deleverage?—empirical evidence based on text analysis

Sun, Changling; Wang, Huacheng; Qi, Yudong; Sun, Yunchuan

doi:10.1007/s00779-020-01491-3

Cited by 5 publications

(10 citation statements)

References 28 publications

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“…Existing studies basically reached a consensus that core competence can help enterprises obtain long-term excess returns and reduce the level of the leverage ratio, etc. (Sabah et al, 2012;Sun et al, 2021a). This study finds that core competence can significantly improve corporate social responsibility, enriching the relevant literature on the economic consequences of core competence.…”

Section: Introductionsupporting

confidence: 53%

“…The ever-blurring industry boundaries, ever-shortening product cycles and ever-expanding scope of competition lead to the greatly increased competitive pressure and operational risks of enterprises. Cultivating and consolidating core competence is not only the key factor in improving the competitiveness of enterprises (Sun et al, 2021a;Zhang & Gao, 2013; Wang et al, 2021a;Sabah et al, 2012) but also an important factor affecting the degree of corporate social responsibility fulfillment. Theoretically, adequate funding is a basic prerequisite for enterprises to fulfill their social responsibilities (Elliott et al, 2014;Yin et al, 2014;Lys et al, 2015;.…”

Section: Introductionmentioning

confidence: 99%

“…Theoretically, adequate funding is a basic prerequisite for enterprises to fulfill their social responsibilities (Elliott et al, 2014;Yin et al, 2014;Lys et al, 2015;. As the source of sustainable competitive advantage, core competence can not only provide adequate financial support when enterprises fulfill their social responsibilities (Sun et al, 2021a;Sabah et al, 2012) but also can enable enterprises to maintain normal operation and development during the lag period of social responsibility activity transforming into financial performance (Li et al, 2018;Li et al, 2020;Servaes & Tamayo, 2013). Therefore, enterprises with strong core competence have a stronger ability to fulfill social responsibilities.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Does Core Competence Affect Corporate Social Responsibility?

Sun¹,

Škapa²,

Liu³

et al. 2021

JOC

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Core competence is the key factor in the competitiveness of enterprises. This study examines whether enterprises with stronger core competence have the ability and motivation to fulfill more corporate social responsibilities. Taking the non-financial companies listed in the A-share market in China from 2010 to 2019 as the research samples, this paper constructs the measurement index of core competence by text analysis method and empirically tests the impact of core competence on corporate social responsibility. We find that the stronger the core competence is, the higher the corporate social responsibility will be, which means core competence can significantly improve corporate social responsibility. This conclusion remains significant after a series of robustness tests. The mechanism test shows that the impact of core competence on corporate social responsibility is realized by enhancing financial strength and increasing external attention. Further research shows that the relationship between core competence and corporate social responsibility are affected by the nature of the enterprise and the degree of market competition. When the enterprise is a non-state-owned enterprise or the industry competition is more intense, the influence of core competence on corporate social responsibility is stronger. This paper reveals the important impact of core competence on corporate social responsibility, which not only enriches the literature on the economic consequences of core competence and the influencing factors of corporate social responsibility but also has a certain practical significance for how to improve corporate social responsibility.

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Section: Introductionsupporting

confidence: 53%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Does Core Competence Affect Corporate Social Responsibility?

Sun¹,

Škapa²,

Liu³

et al. 2021

JOC

Self Cite

View full text Add to dashboard Cite

show abstract

“…There are also some studies briefly discussed the economic consequences of core competence from a certain dimension, such as technology [ 23 , 24 ], which shows that technological competitiveness can improve enterprise performance. With the help of text analysis method, Sun et al [ 25 ] constructed the measurement index of core competence, confirmed that the core competence is helpful for the enterprise to deleverage, and provided a reference for the large sample empirical research on the topic of core competence.…”

Section: Theoretical Analysis and Research Hypothesismentioning

confidence: 99%

“…Corporate core competence. Referring to Sun et al [25], the data of core competence comes from the annual reports of Chinese listed companies, which are obtained through text analysis and manual collection. There are two formats to describe the corporate core competence in the specified paragraphs of the annual report.…”

Section: Variable Definitionmentioning

confidence: 99%

Can core competence help reduce stock price synchronicity? - Empirical evidence based on text analysis

Sun

et al. 2021

PLoS ONE

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This paper constructs the measurement index of core competence by text analysis method and empirically tests the impact of core competence on stock price synchronicity. We find that the stronger the core competence, the lower the stock price synchronicity, and mechanism test shows that core competence reduces the stock price synchronicity by enhancing the transparency of corporate information, which is still valid under a series of robustness tests. Further research shows that:(1) when the corporate governance environment is poor (higher level of internal earnings management, lower quality of accounting information, greater separation of ownership and control, lower shareholding ratio of external institutional investors, weaker product market competition, less media attention), the core competence has a more significant effect on the decline of stock price synchronization; (2)vertically, the dynamic improvement of core competence in the time dimension can play a role in stabilizing stock price synchronization; (3)after distinguishing the types of core competence, we find that the core competence related to information disclosure is more helpful to reduce the stock price synchronization; (4)after the CSRC forces listed companies to disclose the core competence information in the annual report, the core competence plays a stronger role in reducing the stock price synchronization. This study reveals the important role of core competence in reducing stock price synchronization. It not only enriches the relevant literature of core competence and stock price synchronization, but also has important practical significance for the government and regulatory departments to improve the efficiency of capital market allocation.

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