Do employee-friendly firms invest more efficiently? Evidence from labor investment efficiency

Cao, Zhangfan; Rees, William

doi:10.1016/j.jcorpfin.2020.101744

Cited by 110 publications

(101 citation statements)

References 84 publications

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“…Many studies identify a positive association between voluntary CSR disclosures and financial performance (see Section 4.1 ). A common justification is that CSR activities build loyalty and trust for the firm and its brands, which can translate into higher future revenues and lower costs (e.g., Cao and Rees 2020 ). Of course, for CSR to have such an effect, the various stakeholders must be aware it.…”

Section: Potential Firm Responses and Real Effects From Mandatory Csr Reporting Standardsmentioning

confidence: 99%

Mandatory CSR and sustainability reporting: economic analysis and literature review

2021

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This study collates potential economic effects of mandated disclosure and reporting standards for corporate social responsibility (CSR) and sustainability topics. We first outline key features of CSR reporting. Next, we draw on relevant academic literatures in accounting, finance, economics, and management to discuss and evaluate the potential economic consequences of a requirement for CSR and sustainability reporting for U.S. firms, including effects in capital markets, on stakeholders other than investors, and on firm behavior. We also discuss issues related to the implementation and enforcement of CSR and sustainability reporting standards as well as two approaches to sustainability reporting that differ in their overarching goals and materiality standards. Our analysis yields a number of insights that are relevant for the current debate on mandatory CSR and sustainability reporting. It also points scholars to avenues for future research.

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Section: Potential Firm Responses and Real Effects From Mandatory Csr Reporting Standardsmentioning

confidence: 99%

Mandatory CSR and sustainability reporting: economic analysis and literature review

2021

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“…Although expenses associated with employees can increase internal management expenses, they can allow for greater efficiency in the investment in human resources and, in this way, can promote the performance of companies (Cao and Rees, 2020). Javeed and Lefen (2019) show that corporate social responsibility (CSR) improves employee satisfaction and, therefore, the company's goodwill and performance.…”

Section: Management or Market Variablesmentioning

confidence: 99%

Management or market variables in the assessment of corporate performance? Evidence on a bank-based system

Neves

Vieira

Serrasqueiro

2022

IJAIM

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Purpose This paper aims to study the influence of some company-specific characteristics, corporate governance factors and macroeconomic factors on the Portuguese companies’ performance. Design/methodology/approach To achieve this aim, the authors have used data from 39 Euronext Lisbon companies for the period between 2014 and 2019. The authors used panel data methodology, specifically the generalized method of moments estimation method by Arellano and Bover (1995) and Blundell and Bond (1998). Findings The results point out that the sign and significance of the determinants of corporate performance change depending on the variable used to measure performance. The Tobin’s Q variable, as a market variable and variable of interest to potential investors, is explained by some corporate governance variables and company-specific factors. Specifically, potential investors are confident in the leadership power of the chief executive office (CEO) and the members of the Board of Directors, which contributes positively to corporate performance. However, the firms’ age has a negative impact on Tobin’s Q. Considering an accounting variable managed internally by the organizations, the results show that return on assets is negatively influenced by leverage, and positively affected by CEO duality, which the manager believes is decisive to maintain performance levels. Originality/value To the best of the authors’ knowledge, this study is the first to analyze specific characteristics of companies and corporate governance factors, in a specific macroeconomic environment of high dependence on banking, considering the nonlinear effect of company age on company performance.

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“…Many studies stipulate a positive association between voluntary CSR disclosures and financial performance (see Section 4.1). A common justification is that CSR activities build loyalty and trust for the firm and its brands, which can translate into higher future revenues and lower costs (e.g., Cao and Rees 2020). Of course, for CSR to have such an effect, the various stakeholders must be aware it.…”

Section: Csr-specific Real Effects For Individual Firmsmentioning

confidence: 99%

Adoption of CSR and Sustainability Reporting Standards: Economic Analysis and Review

2019

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Do employee-friendly firms invest more efficiently? Evidence from labor investment efficiency

Cited by 110 publications

References 84 publications

Mandatory CSR and sustainability reporting: economic analysis and literature review

Mandatory CSR and sustainability reporting: economic analysis and literature review

Management or market variables in the assessment of corporate performance? Evidence on a bank-based system

Adoption of CSR and Sustainability Reporting Standards: Economic Analysis and Review

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