Do Investors Value a Firm's Commitment to Social Activities? The Moderating Role of Intangibles and the Impact of the Sarbanes-Oxley Act

Rodgers, Waymond; Choy, Hiu Lam; Guiral, Andrés

doi:10.2139/ssrn.1311473

Cited by 6 publications

(4 citation statements)

References 61 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…More recent US studies are still getting mixed results, with Rogers et al (2008) finding a positive relationship only for firms that also devote significant resources to research and development (R&D) and other intangible assets, whereas Becchitti and Ciriretti (2006) find a negative relationship after controlling for industry effects. In studies using other than US data, no relationship was found between CSR and corporate performance for Australian firms (Brine et al, 2009) and Brazilian firms (Fiori et al, 2007), while a negative relationship was found for the UK (Brammer et al, 2006) and Brazilian companies (Crisostomo et al, 2010).…”

Section: Csr and Corporate Performancementioning

confidence: 99%

The market acceptance of corporate social responsibility: a comparison across six countries/regions

Bird

Momentè

Reggiani

2012

Australian Journal of Management

View full text Add to dashboard Cite

Information on the link between market performance and corporate social responsibility (CSR) activities provides an indication of the extent of acceptance by investors of these types of activities. The nature of this relationship is of critical importance for management trying to reconcile the demands of the company's shareholders with those of a much wider group of stakeholders and for investors pursuing a socially responsible investing strategy. Using an international database we investigate the extent to which expenditures on CSR activities are valued across market in six countries/regions. We find that CSR activities are highly valued by the investors in the European markets, where our findings clearly indicate that such activities lead to higher market valuations. In the US, Japan and Australia expenditures on CSR activities have a neutral impact on company valuation, which is still a good outcome for management who wish to incorporate into their decision process the objectives of a wide spectrum of stakeholders and for investors wishing to tilt their investments towards the more socially responsible companies.

show abstract

Section: Csr and Corporate Performancementioning

confidence: 99%

The market acceptance of corporate social responsibility: a comparison across six countries/regions

Bird

Momentè

Reggiani

2012

Australian Journal of Management

View full text Add to dashboard Cite

show abstract

“…Social responsibility seems rather to have an ambiguous and complex impact on firm performance, although no true causality has been proved yet. While a lot of research points towards a mild positive relationship (Aupperle, Carroll, & Hatfield, 1985); (McGuire, Sundgren, & Schneeweis, 1988); (Orlitzky et al, 2003); (Maron et al, 2006); (Wu, 2006); (Rodgers, Choy, & Guiral, 2008), this connection has not been fully established (Polonsky, Neville, Bell, & Mengüç, 2005);(Prado-Lorenzo, Gallego-Alvarez, & Garcia-Sanchez, 2009),; (Park & Lee, 2009) and the mechanisms through which performance is enhanced by CSR are not well understood (Jawahar & McLaughlin, 2001);Mill, 2006;Barnett and Salomon, 2006). Qu (2009) argues that lack of coherence between earlier and more recent studies may be attributed to the fact that "business environments are in a state of flux and the current business environments are becoming more favourable towards businesses that place an emphasis on CSR".…”

Section: Introductionmentioning

confidence: 99%

Corporate Social Responsibility and Firm Financial Performance: A Case of SME’s Sector in Pakistan.

Watto

Manurung²,

Saputra

et al. 2020

IJESSS

View full text Add to dashboard Cite

The paper assesses its relationship with firm innovation and Organizational performance in a single integrative model by using spss data set of 53 Pakistani SME’s firms. A questionnaire of self-administrative is developed to collect the data. Researcher personally visits of different SME’s firms and collect the data from manager of SME’s firms. The research use 275 questionnaire is distributed in different SME’s sector. In this study the statistical techniques of data analysis are used to investigate and find out the relationship among the Firm performance and the other factors. SPSS version16 is used for reliability analysis, descriptive statistics, regression analysis, correlation analysis, to check either modal is good fit or not. Our results supports a partial mediation effect of innovation performance on the relationship between corporate social responsibility and firm performance, meanwhile the effect of corporate social responsibility on firm performance shrinks upon the adding of innovation performance to the model. The findings may help to understand how corporate social responsibility is an important driver mechanism for companies to be more inventive, proficient and effective.

show abstract

“…However, Erragraguy and Revelli (2015) approach the comparison in a different way explaining that the performance of Islamic investment, in the long run, may be affected by concentration in investment in tangible assets, with more limited exposure to companies with substantial intangible assets such as reputation, R&D, Corporate Social Responsibility (CSR). On the other hand, responsible finance may deliver better performance in the long run because it embraces companies that are committed to a stakeholder model and a focus on innovation efforts that will drive long-term benefit (Edmans, 2012;Park, Kim, & Kwon, 2017;Rodgers, Choy, & Guiral, 2008). Interestingly, Islamic indices outperform during financial distress (Hoepner, Rammal, & Rezec, 2011;Walkshäusl & Lobe, 2012), which is often attributed to the exclusion of financial equities from the Shari'ah screened portfolio.…”

Section: Theoretical Framework and Literature Reviewmentioning

confidence: 99%

Faith‐based versus value‐based finance: Is there any portfolio diversification benefit between responsible and Islamic finance?

Ali

Uddin²,

Khan

et al. 2020

Int. J Fin Econ

View full text Add to dashboard Cite

The aim of the study is to explore whether responsible investment and Islamic (Shari'ah-compliant) investment, which have many similarities in objectives but some differences in how they are implemented, hold any diversification benefits for investors across a variety of investment horizons. We adopt an advanced econometric estimation using MGARCH-DCC and wavelet using daily returns data between January 1, 1997, and May 22, 2017. We find indications that responsible investment strategies can offer some hedging benefit to Islamic investors and vice versa. Moreover, the returns from this hedging strategy are higher for those addressing a shorter-term rather than long-term investment horizon. One exception was that we found diversification benefits for both short-and long-term focused investors during the financial crisis, when the time-varying correlation were near their lowest point.

show abstract

Do Investors Value a Firm's Commitment to Social Activities? The Moderating Role of Intangibles and the Impact of the Sarbanes-Oxley Act

Cited by 6 publications

References 61 publications

The market acceptance of corporate social responsibility: a comparison across six countries/regions

The market acceptance of corporate social responsibility: a comparison across six countries/regions

Corporate Social Responsibility and Firm Financial Performance: A Case of SME’s Sector in Pakistan.

Faith‐based versus value‐based finance: Is there any portfolio diversification benefit between responsible and Islamic finance?

Contact Info

Product

Resources

About