Corporate governance and corporate social responsibility interface: a case study of private equity

Süsi, Virgo; Jaakson, Krista

doi:10.1108/cg-11-2019-0348

Cited by 24 publications

(19 citation statements)

References 49 publications

(62 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In a similar study, Aboud and Diab (2018) examined the impact of the ESG score on firm value and find that firms included in the ESG index show high firm value, which indicates that inclusion in the index and firm value are positively related. Susi and Jaakson (2020) find that long-term sustainability supported by CSR increases firm value.…”

Section: Hypothesis Developmentmentioning

confidence: 78%

CSR disclosure and firm performance: evidence from an emerging market

Fahad¹,

Busru

2021

View full text Add to dashboard Cite

Purpose This study aims to investigate the effect of corporate social responsibility (CSR) disclosure on firm performance, considering both firm profitability and firm value in an emerging market, India. Design/methodology/approach The study examines the effect of CSR disclosure on firm performance using panel regressions for the final sample that consists of 386 companies listed in the BSE 500 index, India. It covers all major players in the capital market for ten years from 2007–2016. Findings The result shows a trend toward the negative effect of CSR disclosure on firm profitability and firm value in India; this negative effect is mainly influenced by environmental disclosure score and social disclosure score. An adverse effect of firm profitability and firm value on CSR disclosure is also observed to underline the inverse relationship. Practical implications The study provides implications to consumers, investors, managers and policymakers. Firstly, consumers have to be more aware of CSR initiatives of companies, and they should support those companies to do more. Secondly, investors can use the ESG disclosure score as a signal for the level of CSR activities, which negatively affects firm performance. Thirdly, managers have to consider CSR more seriously and spend CSR amount wisely after proper research and not just to meet the mandatory limit. In addition, managers have to take necessary actions to make the public aware of the CSR activities of the company to gain an advantage in the future. Finally, policymakers have to give more emphasis on the promotion of CSR activities to reach the ultimate consumers who lie in the remote areas of the country, and more awareness has to be given to them regarding CSR activities. Originality/value The findings contribute to the literature by providing insights on CSR disclosure and firm performance relationship in India, an emerging market with increasing international attention where such studies are scant and less clear, especially after the amendments in the Companies Act, 2013. Furthermore, the measurement of CSR disclosure using environmental, social and governance (ESG) score is novel in the Indian context.

show abstract

Section: Hypothesis Developmentmentioning

confidence: 78%

CSR disclosure and firm performance: evidence from an emerging market

Fahad¹,

Busru

2021

View full text Add to dashboard Cite

show abstract

“…The Baltic countries in terms of ESG is still a growing market. Even though there are certain investors, which are actively pursuing responsible investment strategies and even leaning towards impact investing concepts (Süsi & Jaakson, 2020), the overall ESG compliance and requirements relative to the Western Europe or Scandinavia is assumingly lower. A Central Europe based survey performed by Deloitte in 2020 including also the responses of the Baltic investors, revealed that 62% of the private equity (PE) and venture capital (VC) funds believed that ESG factor consideration can increase their expected returns (Deloitte, 2020b).…”

Section: Introductionmentioning

confidence: 99%

Do Baltic investors care about environmental, social and governance (ESG)?

Zumente¹,

Bistrova²

2021

JESI

View full text Add to dashboard Cite

As the environmental, social and governance (ESG) adoption practices in large and developed economies are becoming more sophisticated, in the still developing economies the non-financial information disclosure practices are gradually evolving. This article aims to capture the ESG implementation practices and challenges of the financial investors and banks operating in the Baltic countries -Lithuania, Latvia and Estonia. By analyzing survey data of 37 financial market players, the results reveal that around 81% of the respondents already use ESG data when evaluating their investments, which can partly be explained by the regulatory drivers coming from the large share of private equity and venture funds managing local and international public funding. Moreover, a substantial average weight of 0.39 is found to be attributed to the sustainability factors in the investment evaluation process, which is rather high given the general perception of the ESG being a recent addition to the investment evaluation tools. While 51% of the respondents admitted that Covid-19 pandemic has made no changes in their ESG practices, there are other common challenges named by the investors e.g. lack of general and quantifiable ESG data from the side of the companies and struggles to find matching benchmarks for the large share of the small and midsized companies dominating the Baltic investment market. By addressing the obstacles highlighted by this research, the policy makers can explore the ways how to foster a wider adoption of ESG policies in the Baltic investment universe.

show abstract

“…Additional sources, such as social networks (Harjoto and Wang 2020) and surveys (Steens et al , 2020), could examine different aspects of CG in the COVID-19 era. For instance, case studies could examine more complex concepts (Süsi and Jaakson, 2020), such as the COVID-19 effects. Moreover, industries, such as agriculture, (Teixeira et al , 2020) could also be examined.…”

Section: Resultsmentioning

confidence: 99%

Corporate governance and COVID-19: a literature review

Koutoupis

Kyriakogkonas

Pazarskis

et al. 2021

View full text Add to dashboard Cite

Purpose The purpose of this study is to review the literature on corporate governance (CG); environmental, social and governance (ESG) issues and corporate social responsibility (CSR) during the Coronavirus disease 2019 (COVID-19) pandemic and addresses three research questions: What are the characteristics of the literature on CG and COVID-19? What are the themes in CG in the COVID-19 era? and What are key areas of future research on CG and COVID-19? Design/methodology/approach The authors attempted a systematic literature review of 62 studies published in 2020. The authors used four criteria to identify characteristics of the literature on CG and COVID-19 and three criteria to identify key themes in the literature addressing CG and the pandemic. The authors analyzed answers to the above research questions and proposals from studies reviewed to guide future research. Findings CG in the context of COVID-19 has been studied mostly in developed countries and within a theoretical framework. As accounting data are insufficient, more research is required in all countries (developed, emerging and other). Further, there are no conclusive results regarding the relevance of ESG and CSR to financial performance. Future research should use additional methodologies and data sources to fully explain the impact of COVID-19 on CG. Practical implications Practitioners and policymakers could benefit from the study, as the authors present key challenges to CG for the present and the future. Originality/value This study is the first to provide a systematic literature review on CG during the COVID-19 pandemic and presents current trends, challenges and avenues for future research.

show abstract

Corporate governance and corporate social responsibility interface: a case study of private equity

Cited by 24 publications

References 49 publications

CSR disclosure and firm performance: evidence from an emerging market

CSR disclosure and firm performance: evidence from an emerging market

Do Baltic investors care about environmental, social and governance (ESG)?

Corporate governance and COVID-19: a literature review

Contact Info

Product

Resources

About