Mandatory CSR expenditure and stock market liquidity

Roy, Partha P.; Rao, Sandeep; Zhu, Min

doi:10.1016/j.jcorpfin.2022.102158

Cited by 70 publications

(28 citation statements)

References 102 publications

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“…Second, Fang et al [ 130 ] highlighted that, for corporate finance and environmental studies, liquidity plays a role as a control variable. Roy et al [ 131 ] also supported the role of liquidity in corporate social practices.…”

Section: Methodsmentioning

confidence: 94%

How Does Green Innovation Strategy Influence Corporate Financing? Corporate Social Responsibility and Gender Diversity Play a Moderating Role

Javeed

Teh

San

et al. 2022

IJERPH

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Global warming is becoming more and more of a concern, leading authorities to take action. The industrial sector is a key contributor to environmental and social problems. Based on stakeholder theory and agency theory, this research proposes that green innovation strategies at the firm level can overcome the industry’s negative environmental impact. As a result, the focus of this research is on green innovation strategies for corporate financing. In addition, this research suggests that corporate social responsibility and gender diversity directly affect corporate financing and their interaction. This study used Chinese 301 manufacturing firms (3010 observations) for the period 2010–2019 for this purpose. This study looks into panel data issues in depth by using approaches such as the fixed effect and generalized method of moment. The feasible generalized least square was employed to increase robustness. Furthermore, green innovation strategies were used for corporate financing. Second, the study discovered that corporate social responsibility aided firm financing. Our findings also imply that corporate social responsibility helps to attenuate the association amid green innovative strategies and corporate financing. Finally, these findings revealed that gender diversity had a favorable effect on corporate financing. Furthermore, this study confirmed that the moderating role of gender diversity is beneficial to green innovative strategies and corporate financing. These findings add to the literature by providing policymakers and regulatory bodies with useful information for advancing sustainable development.

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Section: Methodsmentioning

confidence: 94%

How Does Green Innovation Strategy Influence Corporate Financing? Corporate Social Responsibility and Gender Diversity Play a Moderating Role

Javeed

Teh

San

et al. 2022

IJERPH

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“…We include firm size (Size) by taking the natural logarithm of total assets (Leuz et al, 2009), Cash as the sum of year-end cash and short-term securities scaled by total sales (Roy et al, 2022), the international presence using Exports, taking foreign sales as a percentage of total sales (Bena et al, 2017), and ownership concentration (OwnCon) as the proportion of total…”

Section: Covariatesmentioning

confidence: 99%

“…Panel A of Table 2 indicates that the treated and control group firms are significantly different in terms of the covariates' characteristics. Thus, we create near randomized treated and control groups using the PSM approach, in which we carry out the standard steps as prescribed in the literature (Bena et al, 2017;Koirala et al, 2020;Roy et al, 2022). We first run a probit regression in the pre-CSR mandate period (Fiscal Years 2012-2014) as per specification (2), where the 𝑇𝑟𝑒𝑎𝑡 𝑖 dummy is the dependent variable.…”

Section: Propensity Score Matched (Psm) Randomizationmentioning

confidence: 99%

Corporate Social Responsibility and Foreign Institutional Investor Heterogeneity

et al. 2020

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“…The empirical results revisited in the literature on the return on share and the CSR information show divergent findings. In the international scenario, it was observed that most parts of the studies showed a positive relation between CSR and the return on share (Vergalli, & Poddi, 2009;Dhaliwal, Li, Tsang, & Yang, 2011;Becchetti, Ciciretti, Hasan, & Kobeissi, 2012;Xi, Chen, Li, & Xia, 2020;Roy, Rao, & Zhu, 2022;Boubaker, Liu, & Zhan, 2022). A few studies showed that CSR information negatively reflects the share price (Campos & Lemme, 2009;Meng & Zhang, 2022;Luo, 2022).…”

Section: Introductionmentioning

confidence: 99%

Retorno De Lás Aciones Y La Influencia De La Responsabilidad Social Corporativa

Soschinski

Rodrigues

2022

RGSA

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Purpose: This research aimed to analyze the influence of Corporate Social Responsibility (CSR) practices on the return on shares of Brazilian companies. Theoretical framework: Stock market investors analyze the behavior of companies when making decisions (Ball & Brown, 1968). Method/design/approach: It was used the Propensity Score Matching methodology to match companies engaged and not engaged in CSR, by criteria of similarity. Results and conclusion: The findings showed a positive relationship between CSR and the return on share, which demonstrates that the fact that companies engage in CSR, specifically in environmental-related actions, influences the higher market performance in terms of returns of shares. Research implications: It contributes in social terms, by motivating companies to engage in CSR, and in economic terms, by demonstrating that CSR has a positive impact on company value. Originality/value: This result contributes by showing that the environmental pillar of CSR positively impacts the capital market, which can be useful for companies when deciding on their investments in CSR and for shareholders because they understand that CSR creates value even in an emerging scenario like Brazil.

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Mandatory CSR expenditure and stock market liquidity

Cited by 70 publications

References 102 publications

How Does Green Innovation Strategy Influence Corporate Financing? Corporate Social Responsibility and Gender Diversity Play a Moderating Role

How Does Green Innovation Strategy Influence Corporate Financing? Corporate Social Responsibility and Gender Diversity Play a Moderating Role

Corporate Social Responsibility and Foreign Institutional Investor Heterogeneity

Retorno De Lás Aciones Y La Influencia De La Responsabilidad Social Corporativa

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