Liquidity Implications of Corporate Social Responsibility Disclosures: Malaysian Evidence

Subramaniam, Ravichandran; Samuel, Shyamala Dhoraisingham; Mahenthiran, Sakthi

doi:10.2308/jiar-51204

Cited by 28 publications

(34 citation statements)

References 67 publications

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“…Second, this study provides a wider view of the consequences of ESG practices. Although previous works have reported on the consequences of ESG ratings, most of them addressed the impact on financial performance (e.g., Eldomiaty et al 2016;Peiris and Evans 2010) or market performance (e.g., Subramaniam et al 2014). However, to provide a more comprehensive view of these consequences, both the financial and the market implications need to be addressed together.…”

Section: Resultsmentioning

confidence: 99%

The financial and market consequences of environmental, social and governance ratings

Aboud

Diab

2019

SAMPJ

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Purpose This study aims to examine the combined impact of environmental, social and governance (ESG) ratings on the market and financial performance of Egyptian companies during the period from 2007 to 2016 and, thereby, determines the influence of the recent political revolutions –that broke out in the MENA region in early 2011 – on the association between ESG practices and corporate performance. Design/methodology/approach The present work uses data from the S&P/EGX ESG index, which is the first of its kind in the MENA region. The ESG index is designed to increase the profile of companies listed on the Egyptian Exchange and is expected to boost the level and quality of ESG practices in the Egyptian context. The sample includes the 100 most active Egyptian companies in the Egyptian Stock Exchange as measured by the EGX 100 index in the financial year that ended in 2016. The sample begins in 2007, concurrent with the start of the ESG index, and ends in 2016. The period from 2007 to 2010 represents the pre-revolution period, and the period from 2012 to 2016 is the post-revolution period. Findings Firms with high ESG ratings are found to enjoy a better financial and market performance. The authors found some evidence that the influence of ESG ratings on financial performance is more obvious after the revolutions than before the revolutions. Practical implications This study provides insights regarding the impact of political events on the market in the Middle East region. Despite its increasing economic and political importance, this region still suffers from inadequate attention in the literature. The present work investigates the variances that evolved out of the events that started in early 2011 and the implications of these events on the market. The results of this study have implications for regulators and investors in the Egyptian stock market. The authors believe that the relatively new S&P/EGX ESG index provides a way to enhance ESG ratings in Egypt. Social implications The results of the present study provide insights for policymakers regarding the usefulness of the sustainability indices. Originality/value The present results contribute to the growing literature on the economic consequences of ESG ratings, especially in relation to a context characterized by intense political/revolutionary changes. In particular, this study contributes to the few works that have addressed the economic implications of ESG ratings in emerging markets.

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Section: Resultsmentioning

confidence: 99%

The financial and market consequences of environmental, social and governance ratings

Aboud

Diab

2019

SAMPJ

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“…Finally, this study controls for company age, the number of years a company has been in operation until the year of stock recommendations. It is argued that more mature companies disclose greater amounts of information (Subramaniam et al, 2016). Thus, this study expects that the older companies will earn more favourable stock recommendations from sell-side analysts.…”

Section: Control Variablesmentioning

confidence: 91%

Institutional investor heterogeneity and analyst recommendation: Malaysian evidence

Qasem

Aripin

Wan‐Hussin

et al. 2021

Cogent Business & Management

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This study investigates the association between institutional investors' ownership and sell-side analysts' stock recommendations in the context of the heterogeneous nature of institutional investors. Based on a sample of 281 Malaysian public listed companies over the period 2008-2013 (732 company-year observations), we find a significant positive relationship between institutional ownership, in particular ownership held by privately managed institutional investors and sell-side analysts' stock recommendations, but no significant relationship between state owned institutional investors and sell-side analysts' stock recommendations. This suggests that the relationship between institutional investors and analysts' stock recommendations are different among different types of institutional investor. Our results are robust to tests for potential endogeneity between institutional ownership and analysts' stock recommendations.

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“…Analysts and investors increasingly are interested in reviewing CSR and environmental, social, and governance in their valuation assessments (Jain et al, ) but believe that non‐financial reporting would be more impactful if it were subject to independent assurance (Brown‐Liburd & Zamora, ). However, non‐financial information that includes CSR is gaining attention and relevance as decision‐useful information for external financial reporting (Cohen et al, ; Haigh & Shapiro, ; Subramaniam et al, ). Research that seeks a better understanding of current CSR activity and reporting, and their impact on financial reporting, is needed and offers an opportunity for governance researchers.…”

Section: Discussion Limitations and Recommendations For Future Studiesmentioning

confidence: 99%

Exploring corporate governance research in accounting journals through latent semantic and topic analyses

Zengul

Byrd

Oner

et al. 2019

Intell Sys Acc Fin Mgmt

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Summary The literature on corporate governance (CG) has been expanding at an unprecedented rate since major corporate scandals surfaced, such as Enron, WorldCom, and HealthSouth. Corresponding with accounting's important role in CG, accounting scholars increasingly have investigated CG in recent years, so the body of literature is growing. Although previous attempts have been made to summarize extant literature on CG via reviews, none of these attempts has utilized recent developments in text analyses and natural language processing. This study uses latent semantic and topic analyses to address this research gap by analysing abstracts from 1,399 articles in all accounting journals that the Australian Business Deans Council (ABDC) has rated A and A*. The ABDC journal list is widely recognized as a journal‐quality indicator across many universities worldwide. The analyses revealed 10 distinct research topics on CG in the ABDC's top accounting journals. The results presented include the five most representative articles for each topic, as distinguished by topic scores. This study carries important practice and policy implications, as it reveals major research streams and exhibits how researchers respond to various CG problems.

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Liquidity Implications of Corporate Social Responsibility Disclosures: Malaysian Evidence

Cited by 28 publications

References 67 publications

The financial and market consequences of environmental, social and governance ratings

The financial and market consequences of environmental, social and governance ratings

Institutional investor heterogeneity and analyst recommendation: Malaysian evidence

Exploring corporate governance research in accounting journals through latent semantic and topic analyses

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