Corporate social responsibility and firm performance: does institutional quality matter?

Karmani, Majdi; Boussaada, Rim

doi:10.1108/jaar-07-2020-0153

Cited by 19 publications

(29 citation statements)

References 87 publications

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“…Studies considering dynamic panel modeling is becoming increasingly important in studies adopting tangible and intangible assets to explain firms' performance (Alam et al, 2020;Karmani and Boussaada, 2021;Van Vu et al, 2018). Applying dynamic panel modeling considers the Arellano-Bond and the augmented versions, Arellano-Bover/Blundell-Bond (Arellano and Bond, 1991;Arellano and Bover, 1995;Blundell and Bond, 1998).…”

Section: Estimation Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

“…Nur-Tegin and Jakee (2020) showed that corruption is considerably more harmful than beneficial, although in some cases, bribes to a registration clerk to avoid weeks of waiting may promote growth. Examining European firms, Karmani and Boussaada (2021) concluded that corruption significantly decreases the firms' performance.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

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Corruption, R&D and performance: firm-level evidence from Latin America

Viglioni

Ferreira

Aveline

et al. 2022

JAAR

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PurposeThis study aims to investigate how firms' perceived level of corruption moderates the relationship between Research and Development (R&D) investments and firms' financial performance.Design/methodology/approachThe study has used dynamic panel data for local private and public firms from Latin American countries (Brazil, Chile, Mexico and Peru) during 2012–2019. The unbalanced panel was estimated using generalized method of moments (GMM) and instrumental variables (IVs) to account for endogeneity issues.FindingsThe results showed that corruption has a direct and positive effect on firms' financial performance. Moreover, while firms' financial performance increases in the presence of corruption, the authors' findings suggest that corruption negatively moderates the relationship between R&D investments and firms' financial performance. This finding exposes the debate “grease the wheels” once corruption appears to work much more like sand than grease on more innovative firms. Finally, the authors observed a negative effect of long-term R&D investments on firms' performance, indicating that high levels of corruption harm even more long-term innovative activities.Research limitations/implicationsThe authors have delimited the scope to firms from four Latin American countries, and thus, the generalization to other countries, from Latin America or other emerging countries, needs to be made with caution. Furthermore, the authors used the corruption perception index (CPI) to assess the extent of corruption and, apparently, using a single measure may limit the understanding. Future research may deepen the authors' comprehension by exploring the effects of the different practices or types of corruption.Practical implicationsThe authors' findings have challenging policy implications denoting policymakers need to prioritize the institutional quality to reduce corruption and foster firms' R&D investments.Originality/valueThe paper has adopted a unique firm-level dataset from an underresearched region. This enriches a long-standing debate by providing new insights of corruption effects in Latin America. Therefore, the authors provided new evidence of the moderating relationship between corruption and R&D investments on more innovative firms' performance.

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Section: Estimation Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Literature Review and Hypothesesmentioning

confidence: 99%

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Corruption, R&D and performance: firm-level evidence from Latin America

Viglioni

Ferreira

Aveline

et al. 2022

JAAR

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“…Expectations and demands for companies to undertake more effective social roles in society have grown. Corporate social responsibility (CSR) is currently regarded as among the most significant fundamental business practices [1]. Treating customers, workers, and business partners fairly, supporting societal causes, maintaining and enhancing EBEEC the natural environment, and so on are all examples of socially responsible behavior.…”

Section: Introductionmentioning

confidence: 99%

Supply Chains and Corporate Social Responsibility Orientation: An Interpretive Structural Modeling Approach

Tsoulfas

2023

KSS

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Corporate social responsibility (CSR) operations are becoming increasingly important for businesses throughout the world. It is critical to understand how stakeholders perceive these actions to achieve the intended CSR advantages. The nature of CSR motivation has been extensively discussed, yet there are still gaps in the literature, including CSR orientation. Individual enterprises are no longer pitted against one another in modern global competitiveness; instead, a company’s supply chains (SCs) are opposed to those of its competitors. To be competitive, SC partners must be aware of stakeholders’ expectations, which are increasingly focused on sustainable practices. Apart from financial performance, organizations are increasingly held liable for the environmental and social impacts of not just their own operations, but also the operations of their whole SCs, which may include second, third, or higher-tier suppliers. As a result, from raw material extraction through product recycling, an integrated approach to SC management necessitates the development and maintenance of relational capacities across SC partners. In SC collaborations, a company’s commitment to CSR can be a critical aspect. Managing CSR becomes more difficult as SCs get more sophisticated and multitiered, and it attracts greater attention. In this paper, the key drivers that shape CSR orientation are identified based on the literature and are classified into three categories: internal, external, and SC related. A conceptual model is formulated using interpretative structural modeling and MICMAC to identify interrelationships among these drivers, based on the opinions of experts from the Greek market and academia. Keywords: supply chain, corporate social responsibility, drivers, interpretive structural modeling, Greece

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“…El Haddad et al ( 2021) stated the empirical evidence that CSR is a powerful factor in managerial decision-making in the Middle East with the national cultures of Oman and Lebanon exerting partially differing effects on CSR decision-making. Karmani & Boussaada (2021) stated the effect of CSR on Firm Performance (FP) is simultaneously positive and significant for the economic, social and overall score based on an equal-weighted performance of four CSR pillars. According to Javed et al (2020), companies that disclose corporate social responsibility activities properly can improve their reputation and can reduce costs for claims or protests that will occur, so that firm financial performance can increase.…”

Section: Introductionmentioning

confidence: 99%

The Effect of CSR Disclosure on Firm Value with Profitability and Leverage as Moderators

Dewi

Sudana

Badera

et al. 2021

IJSAM

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This study determines the effect of the corporate social responsibility (CSR) disclosure on firm value. The population of this study is composed of mining companies listed on the Indonesian Stock Exchange from 2016 to 2018. The study used a purposive sampling technique and obtained a sample of 66 companies. Applying moderated regression analysis, the results indicate a positive effect of CSR disclosure on firm value. Furthermore, profitability strengthens this effect on firm value, whereas leverage weakens it. CSR disclosure and its interaction with leverage reveal an influence on firm value. The lower the level of the leverage ratio of a company, the higher the CSR disclosure conducted by it, which subsequently increases firm value. This study contributes to business professionals by confirming that firm value will rise with increased CSR disclosure in financial reports.

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Corporate social responsibility and firm performance: does institutional quality matter?

Cited by 19 publications

References 87 publications

Corruption, R&D and performance: firm-level evidence from Latin America

Corruption, R&D and performance: firm-level evidence from Latin America

Supply Chains and Corporate Social Responsibility Orientation: An Interpretive Structural Modeling Approach

The Effect of CSR Disclosure on Firm Value with Profitability and Leverage as Moderators

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