Corporate social responsibility and financial performance: The roles of government intervention and market competition

Long, Weiding; Li, Sihai; Wu, Huiying; Song, Xianzhong

doi:10.1002/csr.1817

Cited by 137 publications

(121 citation statements)

References 128 publications

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“…Fombrun et al, 2015;Ponzi et al, 2011;Rothenhoefer, 2019). Recently, an increasing amount of studies have started to delineate from the collective measure, which includes internal and external target groups, and have hypothesised the theory of stakeholders-specific approach when measuring corporate reputation (Long et al, 2019;Puncheva-Michelotti et al, 2014;Schmitz et al, 2019;Terblanche, 2014;Tischer & Hildebrandt, 2014;Wepener & Boshoff, 2015).…”

Section: Introductionmentioning

confidence: 99%

Modelling the impact of corporate reputation on customers' behaviour

Burlea‐Schiopoiu

Bălan

2021

Corp Soc Responsibility Env

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The research aims to develop and to test a conceptual model to measure corporate reputation and assesses its impact on altering customers' normal behaviour. The findings add to the existing literature by empirically demonstrating that corporate reputation should be interpreted as a reflective construct that can be measured by the means of 25 items, grouped in seven major factors. The analysis validated a mediumto-high impact of reputation on customers' loyalty, word-of-mouth, and adoption of new product or service introductions, while the desire to pay a premium price was rejected. This study explains why executive managers should embrace corporate reputation as an imperative for the company's efforts to influence customers' behaviours and ultimately to outpace competitors. It also provides the executive management with an actionable tool to map out the corporate issues that need to be addressed and proved that companies can shorten the path to purchase by means of reputation, without a huge cost.

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Section: Introductionmentioning

confidence: 99%

Modelling the impact of corporate reputation on customers' behaviour

Burlea‐Schiopoiu

Bălan

2021

Corp Soc Responsibility Env

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“…While earlier studies provide the mixed results on the relationship between a firm's CSR activities and financial performance, recent studies generally provide consistent evidence on the nature of the relationship. The majority of studies find either a positive direct impact of CSR on financial performance through increasing revenues (Beurden & Gössling, 2008;Long et al, 2020;Margolis & Walsh, 2003;Orlitzky et al, 2003;Orlitzky & Benjamin, 2001;Rodgers et al, 2013) or an indirect effect moderated by intangible assets (Guiral, 2012;Hull & Rothenberg, 2008;Surroca et al, 2010). Revenue is the key value driver of earnings persistence, and revenue-supported earnings growth is likely to be more sustainable.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…activities. Most extant studies related to the link between a firm's CSR and performance find a positive relationship between CSR and financial performance (e.g., Beurden & Gössling, 2008;Hull & Rothenberg, 2008;Long et al, 2020;Orlitzky et al, 2003;Rodgers et al, 2013;Surroca et al, 2010). In a comprehensive study, Kim et al (2012) examine whether socially responsible firms behave differently from other firms in their financial reporting, and they report that CSR companies deliver more transparent and reliable financial information to investors.…”

mentioning

confidence: 99%

Corporate sustainability and the market pricing of accounting numbers

Choi

Moon

Guiral

et al. 2021

Corp Soc Responsibility Env

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This study investigates the association between CSR and the market pricing of accounting income numbers' persistence. More specifically, we examine whether the market evaluation of earnings persistence relies on the firm's CSR activities. We find that the market overestimates the persistence of earnings, leading the market to overprice the earnings for CSR companies in Korean setting. We also find that market overprices components of earnings, which are accruals and cash flow from operations, for CSR companies. However, results show that the level of CSR activities does not affect investors' rational pricing of earnings. This study suggests that market participants prefer companies engaging in CSR activities because they are more likely to provide better financial performance and earnings quality. This preference leads investors to overestimate the persistence of earnings and its components for CSR companies.

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“…This study determines relations between CSP-CFP using the Regression Method that also used by [5]. Their study tried to see the impact of the government's influence on the implementation of CSR in China.…”

Section: Relationship Between Csp and Cfpmentioning

confidence: 99%

“…However, the relationship between the two variables is also influenced by other variables that differ in each country due to regulatory factors and the existing political situation. Long, Li, Wu, and Song [5] tried to see the impact of the government's authority on the implementation of CSR in China. They combine the emerging political views into the dominant instrumental view to understand CSR in China.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Corporate Social Performance (CFP) on Corporate Financial Performance (CFP) in SOE and Non-SOE Companies in Indonesia

Sinaga¹,

Jahja²

2021

Proceedings of the 3rd International Conference on Economics, Business and Economic Education Science, ICE-BEES 2020, 22-23 Jul

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This study analyzes the relationship between Corporate Social Performance and Corporate Financial Performance in State-Owned Enterprise (SOE) and non-SOE companies in Indonesia. The issue of CSR in developing countries is still left behind compared to developed countries in Europe and America. Previous research has shown how CSP can affect CFP is quite positive. the extent of the influence of CSR on financial performance will be measured using regression analysis. This research is a quantitative study using the Ordinary Least Square (OLS) method. Our data sources consist of companies listed on the IDX and have an ESG rating from 2013-2017. Besides, it will be seen the influence of the government in market competition, especially regarding SOE companies. The results show that CSP has a weak influence on the company's financial performance in all samples. In the case of Indonesia, state ownership does not influence the effect of CSP on CFP. In third model, this research show that CSP has a significant negative effect on the competitive industry group, but in concentrated industry shows that CSP has no significant effect on CFP. This study shows different result from many previous studies. This study has limitations because only a few state-owned companies in Indonesia have listed, furthermore too many companies in Indonesia did not have ESG rating during 2013-2017.

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Corporate social responsibility and financial performance: The roles of government intervention and market competition

Cited by 137 publications

References 128 publications

Modelling the impact of corporate reputation on customers' behaviour

Modelling the impact of corporate reputation on customers' behaviour

Corporate sustainability and the market pricing of accounting numbers

The Effect of Corporate Social Performance (CFP) on Corporate Financial Performance (CFP) in SOE and Non-SOE Companies in Indonesia

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