Does Corporate Social Responsibility Facilitate Public Debt Financing?

Chang, Xin; Xu, Bin; Yang, Yung Chiang

doi:10.2139/ssrn.3442970

Cited by 5 publications

(2 citation statements)

References 82 publications

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“…Even so, a company’s decision to publish CSR reports is insufficient, as this practice might be tainted by the misappropriation of CSR reporting. Among these misappropriations is the potential for reporting to be linked to an impression management strategy (Rutherford, 2003), a cover-up of hypocrisy (Michelon et al , 2016), a camouflaging or green-washing tool (Moneva et al , 2006), a reputation risk management tool (Bebbington et al , 2008), a window dressing tool (Xu and Yang, 2019) and solely “ticking the box” regarding the CSR dimension in a way that might harm and reduce the substantive purpose of CSR function as the source of value-relevant information (Junior and Best, 2017). Given the presence of misappropriation actions that reflect companies' opportunistic behavior as the report preparer, it is apparent that the reported CSR information might be far from being credible, reliable and trustworthy (Hodge et al , 2009; Briem and Wald, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

Toward a better understanding of social impact, CSR reporting and firm performance: a look at the ASEAN banking industry

Tandelilin

Usman

2022

SRJ

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Purpose This study aims to investigate the relationship between social impact, corporate social responsibility (CSR) reporting and firm performance in the context of the Association of Southeast Asian Nations (ASEAN) banking industry, providing insight into CSR-performance nexus debate, especially for non-environmentally sensitive industry (NESI). Design/methodology/approach We use a sample of 27 publicly listed banks in five ASEAN member countries (i.e. Indonesia, Malaysia, Singapore, Philippines and Thailand), with the period of observations ranged from 2011 to 2019 year. This study also carefully accounts for endogeneity issues and the dynamics of social impact – CSR reporting – bank financial performance relationship. Findings The results show that social impact (performance) and CSR reporting negatively associate with bank performance, either measured by accounting performance or market performance. The negative association between social performance and bank financial performance also persists in a longer-term relationship. This result implies that social performance and CSR might not have the expected result for banks in ASEAN developing countries and the expected effect also does not manifest in the following periods. Practical implications The negative association between social performance and financial performance implies that banks’ CSR in ASEAN might be misstargeted or that it takes more time to manifest the expected outcome. Therefore, banks should be able to foresee if social investment will finally offset the opportunity cost from diverting financial resources away from their core activities. On the other hand, policymakers must standardize the reporting related to social activities for banks and should bring the environmental and social issues to the depositors’ attention to show that these issues are also relevant in the banking industry. Originality/value To the best of the authors’ knowledge, this study is among the first to provide empirical evidence on the direct relationship between social impact, CSR reporting and firm performance in the context of ASEAN’s NESI. The results should be of potential interest value to ASEAN’s banks, regulators and shareholders.

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Section: Literature Reviewmentioning

confidence: 99%

Toward a better understanding of social impact, CSR reporting and firm performance: a look at the ASEAN banking industry

Tandelilin

Usman

2022

SRJ

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“…As shown in the table, the initial research sample comprises 2,219 company-years observations (i.e., 317 companies over seven years). This paper excludes financial/utility companies because of the dissimilarity in various metrics and following literature (e.g., Shahab & Ye, 2018;Bills et al, 2019;Nair et al, 2019;Tan et al, 2020;Xu & Yang, 2019;Yao & Xue, 2019;Cunningham et al, 2020). The paper further eliminates company-years with low trade levels (less than 20 trades) and company-years without the necessary data to compute research variables.…”

Section: Samplementioning

confidence: 99%

The Impact of Corporate Social Responsibility on Regulatory Comment Letters: Evidence from Iran

Hesarzadeh

2022

Rev. contab.

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Securities commissions regularly review corporate reports, and if the review reveals a possible deficiency— such as a potential accounting error— or requires further clarifications, they send the company a comment letter (CL), including a request for providing written responses and relative additional information. Current study aims to examine whether and how corporate social responsibility (CSR) affects CLs. This empirical study is based on a sample of 437 Iranian firm year observations from 2011 to 2017. Results show that firms with more CSR are less likely to receive CL, that more CSR does not influence the association of managerial misbehavior and CLs, and that the negative association between CSR and CLs is stronger among firms facing higher environmental information asymmetry and firms having higher corporate governance quality. Collectively, this paper contributes to the literature by providing new evidence on the beneficial effect of CSR in the context of CLs. Las comisiones de valores revisan periódicamente los informes de las empresas, y si la revisión revela una posible deficiencia -como un posible error contable- o se requiere más aclaraciones, envían a la empresa una carta de comentarios (CL), que incluye una solicitud de respuesta por escrito y la relativa información adicional. El presente estudio pretende examinar si la Responsabilidad Social de las Empresas (RSE) afecta a las cartas de comentarios y cómo lo hace. Este estudio empírico se basa en una muestra de 437 observaciones anuales de empresas iraníes desde 2011 hasta 2017. Los resultados muestran que las empresas con más RSC tienen menos probabilidades de recibir CL y que más RSC no influye en la asociación entre mal comportamiento de los directivos y CL. También se pone de manifiesto que la asociación negativa entre RSC y CL es más fuerte entre las empresas que enfrentan una mayor asimetría de información ambiental y las empresas que tienen una mayor calidad de gobierno corporativo. En conjunto, este trabajo contribuye a la literatura aportando nuevas pruebas sobre el efecto beneficioso de la RSC en el contexto de las CL.

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Exploring the Impact of Corporate Social Responsibility on Leverage of Listed Companies in Oman

Younas

Kassim²

2023

Global Economic Challenges

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Does Corporate Social Responsibility Facilitate Public Debt Financing?

Cited by 5 publications

References 82 publications

Toward a better understanding of social impact, CSR reporting and firm performance: a look at the ASEAN banking industry

Toward a better understanding of social impact, CSR reporting and firm performance: a look at the ASEAN banking industry

The Impact of Corporate Social Responsibility on Regulatory Comment Letters: Evidence from Iran

Exploring the Impact of Corporate Social Responsibility on Leverage of Listed Companies in Oman

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