Corporate social responsibility and corruption risk: A global perspective

Krishnamurti, Chandrasekhar; Shams, Syed; Velayutham, Eswaran

doi:10.1016/j.jcae.2018.02.002

Cited by 51 publications

(46 citation statements)

References 73 publications

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“…Enterprises with low CSR information disclosure level are more likely to publish general, formal CSR reports to meet the expectations of the government, investors and the public, and the content of CSR reports is likely to be similar in different years. Especially for those companies with poor performance or earnings management [32,33] and corruption [34], charitable, public welfare, environmental protection and other social responsibility activities are more likely to be carried out to avoid being punished. Also, those companies are more inclined to show their good image to external stakeholders through standardized and vague positive descriptions in the CSR reports [35].…”

Section: Csr and Stock Price Crash Riskmentioning

confidence: 99%

Corporate Social Responsibility Disclosure and Stock Price Crash Risk: Evidence from China

Dai

Chao

2019

Sustainability

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We take Chinese A-share listed companies in years 2010–2015 as a sample to examine the relationship between Corporate Social Responsibility (CSR) information disclosure and stock price crash risk using the fixed effect model. The results show that: (1) There is an inverted U-shaped nonlinear relationship between CSR information disclosure and stock price crash risk. That is, as the CSR information disclosure level increases, the CSR information disclosure first aggravates and then reduces the stock price crash risk; (2) under different disclosure motives, there is a significant difference in the impact of CSR information disclosure on stock price crash risk. There is still an inverted U-shaped relationship between mandatory CSR information disclosure and stock price crash risk, but not for the semi-mandatory and voluntary disclosure; (3) the academic independent director has a positive adjustment effect on the relationship between CSR information disclosure and stock price crash risk, while the institutional investor has a negative adjustment effect on the relationship between CSR information disclosure and stock price crash risk. The research is of great significance for promoting the fulfillment of CSR, improving corporate governance and stabilizing the capital market.

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Section: Csr and Stock Price Crash Riskmentioning

confidence: 99%

Corporate Social Responsibility Disclosure and Stock Price Crash Risk: Evidence from China

Dai

Chao

2019

Sustainability

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“…Especially in emerging markets where market mechanisms are not sound, companies are more likely to adopt speculative acts [36]. They will use CSR reports as a self-interest tool [37] and are more likely to be involved in corruption [38]. At this time, the disclosure of CSR reports may hide a problem of adverse selection.…”

Section: Csr and Stock Price Synchronicitymentioning

confidence: 99%

Is the Social Responsibility Information Disclosed by the Companies really Valuable?—Evidence from Chinese Stock Price Synchronicity

et al. 2018

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Social responsibility information disclosed by listed companies is an important way to transfer non-financial information to the stock market, which affects the level of stock price synchronicity. In order to explore whether Corporate Social Responsibility (CSR) information is valuable in improving capital market pricing efficiency, this paper conducted empirical research based on a sample of China Shanghai and Shenzhen A-share listed companies in years 2010–2015. The results showed that: (1) Overall, there is a significant positive correlation between CSR information and stock price synchronicity; (2) under different disclosure motives, there is no significant difference in the impact of CSR on stock price synchronicity; (3) Securities analysts and institutional investors can negatively regulate the positive relationship between CSR and stock price synchronicity, while the media will intensify the positive effect of CSR on stock price synchronicity. This research is of great significance in promoting the fulfillment of CSR and improving capital market pricing efficiency.

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“…Though the development and enforcement of anti-corruption laws have been emphasized during the past decades, which included huge fines for companies and imprisonment of guilty corporate executives, the problem of corruption is still relevant in the energy sector. The importance of proper legal regulation is linked to the fact that energy resources are located in the developing countries where governments have principal control over the decisions in the energy sector, especially in granting licenses and public procurement procedures [9].…”

Section: Introductionmentioning

confidence: 99%

“…The impact of CSR on corruption risk mitigation in the energy sector was investigated by several scholars who discovered that CSR has a positive impact on restraining managerial self-serving behavior in developed energy markets and countries that have strong institutions, high level of social capital, and active social integrity [9][10][11]. However, the CSR initiatives appeared to be less effective in mitigating corruption risks in emerging markets with weak regulation, ineffective institutions, and lower legal protection of private property and investments [12].…”

Section: Introductionmentioning

confidence: 99%

“…The developed energy markets play a significant mediating role. Therefore, the quality of institutions, social capital, and the level of market development maturity are the main drivers mediating positive impact of CSR on the restraining self-serving managerial behavior [9]. In addition, oil extraction and mining companies that represent controversial industries sometimes implement CSR in order to obtain legitimacy [13][14][15][16][17].…”

Section: Introductionmentioning

confidence: 99%

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Corporate Social Responsibility and Corruption: Implications for the Sustainable Energy Sector

Ren

Qiao

et al. 2019

Sustainability

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This paper focuses on the concept of Corporate Social Responsibility (CSR) and its relationship with sustainability. The authors investigate the linkages between CSR and sustainability at both enterprise and country levels. The main focus of this study is the energy sector due to its importance in terms of economic, environmental, and social impacts. There are some doubts as to whether a socially responsible business meets public welfare expectations and fosters the country’s social and economic development, as well as the successful achievement of sustainable development objectives. However, it becomes apparent that the development of corporate social responsibility in the energy sector faces a plethora of challenges. Corruption is one of the most important challenges of sustainable energy development. The study analyzes the main areas of CSR policies where energy companies are expected to make a positive contribution to sustainable energy development: mitigation of environmental impact, economic and social development, and good governance. The authors argue that the corruption risks represent a very important issue that is hampering sustainable energy development, and CSR can be applied to mitigate these risks in the energy sector. In addition, government policies might be necessary to create a favorable environment for corruption risk mitigation. The study analyzes the main tools of corporate social responsibility in the energy sector and addresses the impact of CSR on the sustainability of energy sector and corruption risk mitigation. The study analyzes a corruption risk mitigation model in the energy sector and provides recommendations for strengthening corporate social responsibility and mitigating corruption risk. Our results show that CSR can play a vital role in dealing with corruption in the energy sector at the enterprise level. It becomes apparent that anti-corruption standards represent the main supporting means for achieving other CSR goals and principles. Therefore, mitigation of corruption risks should become a priority for socially responsible companies that are operating in the energy sector.

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Corporate social responsibility and corruption risk: A global perspective

Cited by 51 publications

References 73 publications

Corporate Social Responsibility Disclosure and Stock Price Crash Risk: Evidence from China

Corporate Social Responsibility Disclosure and Stock Price Crash Risk: Evidence from China

Is the Social Responsibility Information Disclosed by the Companies really Valuable?—Evidence from Chinese Stock Price Synchronicity

Corporate Social Responsibility and Corruption: Implications for the Sustainable Energy Sector

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