Abstract:We selected the Chinese A-share listed companies during period of 2007 to 2017 as the research subject, and from the perspective of information and reputation effects, we examined the relationship between corporate social responsibility (CSR) information disclosure and innovation sustainability. The results show that CSR information disclosure has a significant positive relationship with innovation sustainability. Analysis of the effects channel suggests that the information effect plays a dominant role; CSR i… Show more
“…United Nations Global Compact (2020), among others, promotes corporations to take concrete actions that support the society around them and report annually on the efforts. Purposively and referencing Dutordoir et al (2018), Hu et al (2019), Hu et al (2020), andWang (2017), this study scored 1 if any of the four items or all is disclosed and 0 if none disclosed. Disclosure information in the annual reports has been widely used by previous studies to investigate the extent of CSR disclosure by firms (e.g., Akbas, 2016;Akbas & Canikli 2014;Anzonwu et al, 2018;Fallan, 2016;Hackston & Milne, 1996;Khlif et al, 2015;Niskala & Pretes, 1995;Nor et al, 2016;Ofoegbu et al, 2018;Ong et al, 2016).…”
The fight against coronavirus disease (COVID-19) has called for corporate social responsibility (CSR). Thus, Nigerian businesses, such as in the petroleum and financial industries, have provided hospital donations and $30 million assistance among others to mitigate COVID-19. We investigated the moderating role of negative earnings in firm size–CSR relationship. We used content and logistic panel regression analyses on a sample of 100 firms listed on Nigerian Stock Exchange (NSE). First, we confirmed a positive firm size–CSR relationship (stakeholders’ expectation hypothesis). Second, we found that earnings loss negatively affects stakeholders’ expectation hypothesis. The study suggests that big firms are likely to negatively respond to the clarion call for donations for COVID-19 due to negative earnings. However, our robustness test revealed that old firms positively respond to CSR activities despite earnings loss. Our study results contribute important insights into the current debate concerning the effect of earnings loss on CSR activities. Corporate managers are encouraged to participate in social activities by contributing their resources for human race sustainability and community development, hence enabling stakeholders to highly value their work, money, support, and societal acceptance.
“…United Nations Global Compact (2020), among others, promotes corporations to take concrete actions that support the society around them and report annually on the efforts. Purposively and referencing Dutordoir et al (2018), Hu et al (2019), Hu et al (2020), andWang (2017), this study scored 1 if any of the four items or all is disclosed and 0 if none disclosed. Disclosure information in the annual reports has been widely used by previous studies to investigate the extent of CSR disclosure by firms (e.g., Akbas, 2016;Akbas & Canikli 2014;Anzonwu et al, 2018;Fallan, 2016;Hackston & Milne, 1996;Khlif et al, 2015;Niskala & Pretes, 1995;Nor et al, 2016;Ofoegbu et al, 2018;Ong et al, 2016).…”
The fight against coronavirus disease (COVID-19) has called for corporate social responsibility (CSR). Thus, Nigerian businesses, such as in the petroleum and financial industries, have provided hospital donations and $30 million assistance among others to mitigate COVID-19. We investigated the moderating role of negative earnings in firm size–CSR relationship. We used content and logistic panel regression analyses on a sample of 100 firms listed on Nigerian Stock Exchange (NSE). First, we confirmed a positive firm size–CSR relationship (stakeholders’ expectation hypothesis). Second, we found that earnings loss negatively affects stakeholders’ expectation hypothesis. The study suggests that big firms are likely to negatively respond to the clarion call for donations for COVID-19 due to negative earnings. However, our robustness test revealed that old firms positively respond to CSR activities despite earnings loss. Our study results contribute important insights into the current debate concerning the effect of earnings loss on CSR activities. Corporate managers are encouraged to participate in social activities by contributing their resources for human race sustainability and community development, hence enabling stakeholders to highly value their work, money, support, and societal acceptance.
“…In the literature, there are several empirical studies examining the relationship between corporate social/environmental performance and corporate financial performance, and company benefits from the increased communication of good information [2]. Transparency and reporting indicate positive market responses to sustainability reporting [5].…”
Section: Benefits Of Sustainability Reportingmentioning
confidence: 99%
“…In these conditions, sustainability communication can help to signal the quality of the company and to lower the cost of equity, especially in competitive markets [40]. By engaging in more social and environmental programs, several top companies in some industrial sectors show that they can differentiate themselves from other companies through their sustainability efforts and opportunities [2,40].…”
Section: Benefits Of Sustainability Reportingmentioning
confidence: 99%
“…Considered by many specialists as a goal and by others as an instrument, sustainability reporting has been integrated into the business model of companies due to its positive impact on stakeholder relations, measuring and communicating progress, and favoring better positions in the markets where they act [1][2][3][4]. As financial and non-financial challenges become more interdependent, sustainability reporting provides greater transparency and accountability, allowing for better information and reliable and realistic decisions.…”
The concept of sustainability reporting has been addressed by experts worldwide and is defined as the process of communicating the social and environmental effects of the economic actions of organizations to special interest groups within society in general. The main purpose of this research was to identify and analyze the opinions of the real benefits obtained by large companies in Romania following the elaboration of sustainability reports and their contribution to the development of a sustainable economy. A quantitative marketing research was carried out on the sample randomly extracted from a target community of the largest 5750 companies across 35 counties that were active in strategic priority areas of Romania. Both explicitly and implicitly, the research resulted in essential aspects related to the correlation of the sustainability strategy with sustainability reporting, how sustainable development goals contribute to improving all of the processes included in the integrated company management system, how the internal and external benefits can contribute to increasing economic, social, and environmental performance, and building sustainable relationships with shareholders, employees, and stakeholders. In addition, the findings show that aligning a sustainability strategy with a global business strategy and including sustainability reporting requirements (non-financial) are important concerns at the level of the top companies in Romania.
“…Briones et al got a similar result that there is a positive correlation between CSR and corporate innovation [ 19 ]. Hu et al pointed out that CSR is a way to deliver some information about firms’ operations [ 20 ]. Shahzad et al made an analysis of the association between CSR and environmental sustainability, and found that social responsibility practices can significantly contribute to the green innovation of firms [ 5 ].…”
Section: Literature Review and Hypothesesmentioning
High-polluting industries are regarded as the main sources of air pollutant emissions and the major factors that significantly destroy the ecological environment. Corporate innovation in high-polluting industries improves the energy consumption efficiency and reduces the emission of air pollutant, which mitigates the conflict between environment and economy. Using the sample of China’s listed firms from 2010 to 2017, this study examines the impact of corporate social responsibility (CSR) and financialization on corporate innovation in high-polluting industries. The results show that there is a positive association between CSR and corporate innovation, while there is a negative association between financialization and corporate innovation. Furthermore, the financialization of high-polluting firms can alleviate the promotion role of CSR in the innovation process. The financialization of state-owned enterprises in high-polluting industries may not have a crowding-out effect on research and development (R&D), but it can limit the R&D promotion effect of CSR engagements. In contrast, the financialization of non-state-owned enterprises will hinder corporate innovation, but it will not affect the association between CSR and technology innovation. We also find that the financialization of high-polluting firms with low financial constraints can alleviate the promotion role of CSR engagements in innovation. Meanwhile, the CSR engagements of high-polluting firms with high financial constraints play a stronger role in corporate innovation. During the implementation of environmental policies, the negative association between financialization and corporate innovation has been strengthened. Our findings can encourage high-polluting firms to make more efforts in environmental protection and social stability.
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