CSR and Credit Ratings: Do Fallen Angels Adjust Their CSR Engagement?

Product differentiation, market dynamics and the value relevance of trade payables: Evidence from UK listed firms

“…In this paper, we address the issue of omitted variables by employing an innovative and influential procedure developed by Oster (2017). This technique is new to the accounting and finance literature and has so far been applied in recent influential papers to deal with endogeneity concerns (see, Aktas et al, 2017;Jha, 2015;Frijns et al, 2016). This is a sensitive-type method used to gauge the robustness and validity of the results to omitted variables biases by testing the stability of the coefficients.…”

“…It is based on the assumption that it is possible to determine how large the selection on unobservables must be in order to explain away the coefficient of interest, by measuring how much the regression coefficients and the model R-squared change with the inclusion of extra control variables. To potentially assess the impact of omitted variables on all the coefficients of interest in Table 4, we follow the procedure suggested by Oster (2017) and applied in Aktas et al (2017) by assuming that omitted variables and included variables are of equal importance ( = 1), and the inclusion of omitted variables can lead to a maximum Rsquared (Rmax) of 1.3 times the estimated R-squared in the full specification in Table 4. Table 11 contains the results of the Oster (2017) According to the first criteria which test whether ( *) moves away from zero in both directions, the results in column 5 indicate that is the case for all our main variables of interest.…”

Product Differentiation, Market Dynamics and the Value Relevance of Trade Payables: Evidence from UK Listed Firms

“…It is based on the assumption that it is possible to determine how large the selection on unobservables must be in order to explain away the coefficient of interest, by measuring how much the regression coefficients and the model R-squared change with the inclusion of extra control variables. To potentially assess the impact of omitted variables on all the coefficients of interest in Table 4, we follow the procedure suggested by Oster (2017) and applied in Aktas et al (2017) by assuming that omitted variables and included variables are of equal importance ( = 1), and the inclusion of omitted variables can lead to a maximum Rsquared (Rmax) of 1.3 times the estimated R-squared in the full specification in Table 4.…”

Corporate Social Responsibility Disclosure (CSRD) and Financial Distressed Risk (FDR): Does Institutional Ownership Matter?

“…In today's complex and competitive economic world, the role of corporate social responsibility in improving corporate financial situation, reputation, and attracting potential investors is becoming more important and can be a determining factor in reducing corporate financial crises [3][4][5][6][7]. So far, a lot of research has been done on the role of corporate social responsibility in company value [8][9][10][11][12][13], firm risk [14,15], stockholders wealth [16,17], the stock price [18][19][20], cost of equity capital [21][22][23], credit ratings [24][25][26], and bankruptcy likelihood [27,28]. Investigating the disclosure level of CSR is still an ongoing concern in finance research owing to its great importance to investors, shareholders, and capital market analysts.…”