Corporate Social Responsibility and Access to Finance

Cheng, Beiting; Ioannou, Ioannis; Serafeim, George

doi:10.2139/ssrn.1847085

Cited by 93 publications

(69 citation statements)

References 106 publications

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“…Cheng et al 2014;Ioannou and Serafeim 2012;Kocmnova et al 2011). In comparison with the KLD database for US companies widely used in the CSR literature, Asset4 provides more comprehensive calculation of the rating scores.…”

Section: Sample and Datamentioning

confidence: 99%

Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance

Qiu²,

2015

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In this paper we draw on insights from theories in the management and corporate governance literature to develop a theoretical model that makes explicit the links between a firm's corporate social responsibility (CSR) related board attributes, its board CSR strategy, and its environmental and social performance. We then test the model using structural equation modeling approach.We find that the greater the CSR orientation of the board (as measured by the board's independence, gender diversity, and financial expertise on audit committee), the more proactive and comprehensive the firm's CSR strategy, and the higher its environmental and social performance. Moreover, we find this link to be endogenous and self-reinforcing, with superior CSR performers tending to further strengthen their board CSR orientation.This result while positive is also suggestive of the widening of the gap between the leads and laggards in CSR.Therefore the question arises as to how 'leaders' are using their superior CSR competencies seen by many scholars as a source of corporate (at times unfair) competitive advantage. Stakeholders of corporations therefore need to be cognizant of this aspect of CSR when evaluating a firm's CSR activities. Policy makers also need to be cognizant of these concerns when designing regulation in this field.

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Section: Sample and Datamentioning

confidence: 99%

Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance

Qiu²,

2015

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“…The data is converted into units that enable the calculation of scores ranging from 0 to 100, which represent a firm's performance in a given dimension relative to the entire Asset4 universe in a year. The Asset4 scores have been used in other studies (Cheng et al, 2014;Ioannou and Serafeim, 2012;Luo et al, 2014).…”

Section: Datamentioning

confidence: 99%

Unraveling the effects of environmental outcomes and processes on financial performance: A non-linear approach

Misani

Pogutz

2015

Ecological Economics

138

151

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We examine the roles of the outcome and process dimensions of environmental performance in determining financial performance as measured by Tobin's q. Outcomes refer to the impacts of the firm on the natural environment, while processes are the firm's actions to reduce these outcomes. We focus on a specific outcome-carbon emissions-and suggest that it affects Tobin's q non-linearly. We find that firms achieve the highest financial performance when their carbon performance is neither low nor high, but intermediate. We also find that environmental processes moderate this relationship as they reinforce firms' financial performance through improved stakeholder management. This mixed picture suggests that firms do not generally internalize the costs of poor carbon performance, but those that stand out in both environmental outcomes and processes achieve net financial benefits. These findings are based on a sample of carbon-intensive firms that disclosed their greenhouse gas (GHG) emissions through the Carbon Disclosure Project from 2007 through 2013.

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“…Jones (1995) used the term "instrumental stakeholder management" to highlight the firm value benefits from taking into account stakeholders' interests. Specifically, CSR can improve brand image (Moskowitz, 1972), foster customer goodwill (Solomon & Hanson, 1985), reduce the likelihood of negative regulatory action (Freeman, 1984;Porter & van der Linde, 1995), attract and retain high-quality employees (Greening & Turban, 2000;Turban & Greening, 1997), and attract capital from socially responsible investors (Cheng, Ioannou, & Serafeim, 2011).…”

Section: The Link In Theorymentioning

confidence: 99%

“…Ioannou and Serafeim (2010) found that CSR improves analyst recommendations, and Cheng, Ioannou, and Serafeim (2011) showed that CSR increases access to finance by using an instrumental variable to identify causality. While these studies are useful in identifying specific channels through which CSR can help, CSR might worsen firm value through others.…”

Section: The Link In Practicementioning

confidence: 99%

The Link Between Job Satisfaction and Firm Value, with Implications for Corporate Social Responsibility

Edmans

2012

SSRN Journal

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Executive OverviewHow are job satisfaction and firm value linked? I tackle this long-standing management question using a new methodology from finance. I study the effect on firm-level value, rather than employee-level productivity, to take into account the cost of increasing job satisfaction. To address reverse causality, I measure firm value by using future stock returns, controlling for risk, firm characteristics, industry performance, and outliers. Companies listed in the "100 Best Companies to Work For in America" generated 2.3% to 3.8% higher stock returns per year than their peers from 1984 through 2011. These results have three main implications. First, consistent with human resource management theories, job satisfaction is beneficial for firm value. Second, corporate social responsibility can improve stock returns. Third, the stock market does not fully value intangible assets, and so it may be necessary to shield managers from short-term stock prices to encourage long-run growth.

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Corporate Social Responsibility and Access to Finance

Cited by 93 publications

References 106 publications

Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance

Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance

Unraveling the effects of environmental outcomes and processes on financial performance: A non-linear approach

The Link Between Job Satisfaction and Firm Value, with Implications for Corporate Social Responsibility

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