Corporate Social Responsibility Versus Corporate Shareholder Responsibility: A Family Firm Perspective

Abeysekera, Amal P.

doi:10.2139/ssrn.3178210

Cited by 13 publications

(19 citation statements)

References 22 publications

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“…Unreported results of equity ownership thresholds by largest individual or family shareholder across country reveal that family and largest individual ownership structure is significantly more widespread among European and South-Eastern Asian institutional context than their Anglo-American counterpart. We meet findings supported by Abeysekera and Fernando (2018) who reveal that more than half of East Asian corporations are family controlled, family controlled firms account for 44 per cent of the firms in Western Europe and nearest a third of the U.S. S&P 500 firms are family firms. Per-countries unreported results highlight that the degree of shareholding voting power concentration is very high in Europe than that in other settings.…”

Section: Data Analysis Methodology and Empirical Resultssupporting

confidence: 83%

Corporate social responsibility and earnings quality: do institutional features matter?

Jouber

2019

JGR

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Purpose This paper aims to examine whether corporate social responsibility (CSR) is associated with firms’ earnings quality (EQ) and how this association is context-specific. The authors consider specific institutional differences in strength of corporate governance (CG) attributes, quality of law enforcement and level of investor protection found between Anglo-American, European and South-Eastern Asian CG models to test the impact of above country-level factors on this association. Design/methodology/approach To test the association between CSR and EQ, the authors consider EIRIS (Ethical Investment Research Service) (2018) CSR issues of sustainability indicators as proxy to capture CSR. Following Rezaee and Tuo’s (2019) study, the authors classify EQ into innate earnings quality (IEQ) and discretionary earnings quality (DEQ). The authors investigate the innate (discretionary) EQ as to refer to firm’s inherent operating uncertainty (earnings management). Several dependency models for panel data applying the generalized method of moment (GMM) estimator of Arellano and Bond (1991) are ruled based on archival data of 4,206 non-financial international listed firms over the period 2012-2017. Findings Univariate and GMM multivariate cross-country analyses show that CSR is positively associated with EQ and that this association is more pronounced for firms within countries where good CG tools and higher investor right protection are preserved. The authors interpret the findings as evidence that the CSR-EQ association is shaped by the degree of monitoring role played by institutional features at the country level. The results are robust to a battery of robustness tests. Originality/value The originality of this research is twice. On the one hand, it examines whether CSR is a reflection of manager’s ethical opportunistic behavior resultant on earnings quality derived from a firm’s innate traits. On the second hand, it tests whether CSR is a reflection of discretionary earnings quality manifested by earnings management behavior. This paper is the first to support that institutional features significantly matter when investigating the association between CSR and EQ.

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Section: Data Analysis Methodology and Empirical Resultssupporting

confidence: 83%

Corporate social responsibility and earnings quality: do institutional features matter?

Jouber

2019

JGR

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“…In a recent study, García-Sánchez et al (2020) examine an international sample of 956 listed firms and show that FFs show a higher level of CSR performance compared to non-FFs. Abeysekera & Fernando (2020) analyze firms in the US and observe that FFs are more responsible to shareholders than non-FFs in engaging in environmental investments. In the US context, Madden et al (2020) draw on socioemotional selectivity theory to examine the differences between FFs and non-FFs in engaging with CSR activities, and show that FFs are more likely to invest in CSR than non-FFs.…”

Section: Family Vs Non-family Firmsmentioning

confidence: 99%

Corporate social responsibility in family firms: A systematic literature review

Mariani

Al-Sultan

Massis

2021

Journal of Small Business Management

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The field of CSR in family firms has experienced remarkable growth recently. Therefore, a literature review on the topic is needed to provide an updated overview of extant research and draw guidelines for future research. Using bibliometric mapping, we conducted a systematic literature review (SLR) on corporate social responsibility (CSR) in family business drawing on the Web of Science (WOS) and Scopus databases. The bibliographic coupling conducted suggests that family involvement, corporate governance, and sustainability are the most frequently studied topics. Furthermore, through our SLR, we systematized the studies into an interpretative framework, identifying the drivers and outcomes of CSR practices, processes, and strategies in family business. The study reveals and organizes the state-of-the-art of CSR research in family business, outlines important theoretical implications and develops a future research agenda.

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“…We follow this convention, which is perfectly coherent with the U. S. context, where ownership structures are more fragmented than in other countries. Moreover, recent studies (Abeysekera & Fernando, 2020; Cordeiro et al, 2020) have already used the dataset to find relationships between family ownership and corporate environmental performance.…”

Section: Methodsmentioning

confidence: 99%

“…Abeysekera and Fernando (2020) reported that family firms are more responsible toward shareholders than nonfamily firms in making environmental investments, showing lower environmental strengths and concerns. In particular, they found that when shareholder and societal interests diverge, family firms are significantly more on the side of shareholders, undertaking fewer environmental investments than nonfamily firms.…”

Section: Theoretical Developmentmentioning

confidence: 99%

Family ownership and stockholder reactions to environmental performance disclosure: A test of secondary agency relationships

2021

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Using the first ever Newsweek "Green Rankings" of the 500 largest U. S. firms in 2009 as a significant historical event, we test for the stockholder reaction to ratings of corporate environmental performance. Both the conventional null hypothesis significance testing and Bayesian approaches show that stockholders react significantly more positively to corporations with higher ratings of corporate environmental performance and that this effect is stronger in family owned firms. Our findings suggest that majority shareholders do not necessarily appropriate minority stockholders' rents when investing in environmental activities, as would be the case in the presence of "Type II" agency conflicts between majority family owners and minority stockholders. The family ownership effect is also found to be stronger in dirty (heavy polluting) industries as well as in more competitive and more opaque industry contexts.

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Corporate Social Responsibility Versus Corporate Shareholder Responsibility: A Family Firm Perspective

Cited by 13 publications

References 22 publications

Corporate social responsibility and earnings quality: do institutional features matter?

Corporate social responsibility and earnings quality: do institutional features matter?

Corporate social responsibility in family firms: A systematic literature review

Family ownership and stockholder reactions to environmental performance disclosure: A test of secondary agency relationships

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