On the Determinants of Corporate Social Responsibility: International Evidence on the Financial Industry

Chih, Hsiang-Lin; Chih, Hsiang-Hsuan; Chen, Tzu-Yin

doi:10.1007/s10551-009-0186-x

Cited by 418 publications

(378 citation statements)

References 28 publications

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“…However, Lopez et al (2007) found that there is a negative correlation between financial and sustainable performance, or at least during the first years in which sustainability practices are applied. Similar findings derived from Chih et al (2010) attempt to specify the conditions under which corporations may or may not act in socially responsible ways, where it was found, amongst others, that firms with larger size are more CSR minded, and that the financial performance and CSR are not related.…”

Section: Empirical Results On the Relationship Between Csp And Firm Fsupporting

confidence: 53%

“…Lo & Shue, 2007) or whether highly sustainable companies outperform other companies in terms of financial performance (e.g. Konar & Cohen, 2001;Lopez et al, 2007;Becchetti et al, 2008;Chih et al, 2010;Lourenço et al, 2012). These studies have produced interesting, albeit contradicting results.…”

Section: Empirical Results On the Relationship Between Csp And Firm Fmentioning

confidence: 99%

“…Since then stakeholder theory has been widely used for empirical analyses relating to CPS (Ruf et al, 2001;Chih et al, 2010;Jones et al, 2009;Ziegler, 2012).…”

Section: Introductionmentioning

confidence: 99%

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The Relation between Sustainability Performance and Stock Market Returns: An Empirical Analysis of the Dow Jones Sustainability Index Europe

Stekelenburg¹,

Γεωργακόπουλος²,

Sotiropoulou³

et al. 2015

IJEF

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This paper investigates the relation between corporate financial performance (CFP) and corporate sustainability performance (CSP). This is done by first analyzing a sample of European stocks that were added to or deleted from the Dow Jones Sustainability Europe Index (DJSI Europe) over the period [2009][2010][2011][2012][2013], and second by analyzing a sample of European stocks that were recognized as industry group leaders in CSP by the DJSI Europe over the same period. The impacts are measured in terms of (abnormal) stock returns. For the first analysis no strong evidence could be found that the announcement of the inclusion and exclusion events has any significant impact on stock return. However, on the day of change (CD) and in the period following CD, index inclusion (exclusion) stocks experience a significant but temporary increase (decrease) in stock return. These results seem to support Harris and Eitan's (1986) price pressure hypothesis, which postulates that event announcement does not carry information and any shift in demand and hence the corresponding price change is temporary. From the second analysis, on industry group leaders, it can be concluded that the market rewards firms with high CSP. In the period after the day of change, industry group leader stocks experience a permanent and significant positive growth in stock returns. This conclusion can be supported by the resource based perspective, which posits that firms capable of investing heavily in CSP have greater underlying resources which in turn should produce higher financial performance (Alexander &

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Section: Empirical Results On the Relationship Between Csp And Firm Fsupporting

confidence: 53%

Section: Empirical Results On the Relationship Between Csp And Firm Fmentioning

confidence: 99%

See 1 more Smart Citation

The Relation between Sustainability Performance and Stock Market Returns: An Empirical Analysis of the Dow Jones Sustainability Index Europe

Stekelenburg¹,

Γεωργακόπουλος²,

Sotiropoulou³

et al. 2015

IJEF

View full text Add to dashboard Cite

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“…Given the scale of operations and relatively greater economic and social influence, larger companies are often exposed to recurrent public visibility from the media (Fortainer et al, 2011;Gallo and Jones Christensen, 2011;Brammer and Pavelin, 2008). Empirical studies have substantiated that larger companies tend to disclose higher levels of public information readily to ease informational and political costs associated with information asymmetry (Gamerschlag et al, 2011;Chih et al, 2009;LaFond and Watts, 2008;Reverte, 2008;Cormier and Magnan, 2003). With increased public visibility, the likelihood of companies to use a formal channel to communicate CSR activities and improve their corporate image and legitimacy increases equitably (Haniffa and Cooke, 2005).…”

Section: Company Sizementioning

confidence: 99%

A Comparative Review on Company Specific Determinants for Sustainability Reporting in United Kingdom (UK) and Malaysia

Tong

2017

SHS Web Conf.

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This study aims to comparatively assess the effects of company-specific variables on the level of corporate social responsibility (CSR) information disclosed in publicly-traded companies from United Kingdom (UK) and Malaysia. Content analysis was applied to sampled reports from the FTSE 100 Index and FTSE Bursa KLCI against inferred meanings from the Global Reporting Initiative (GRI)-derived coding base to identify similarities and/or differences in CSR disclosure practices. The Spearman's correlation coefficients and multiple linear regressions (MLR) analyses further gauged the associations between the variables and total quantity of CSR disclosure (TQCSR); and, determined the predictive determinants on sustainability reporting. The Spearman's correlation has identified a negative association on leverage with TQCSR for UK companies. In contrast, the TQCSR in the Malaysian sample was positively associated with directors' CSR-related experiences and profitability but negatively associated with company size. Results from MLR analyses presented company size as a significant determinant on sustainability reporting in the UK model, while directors' experiences were indicated as the crucial determinant in the Malaysian model. This first, direct cross-market sustainability reporting study highlights the importance of board of directors' CSR-relevant experience in influencing the level of CSR disclosures in publicly-traded companies.

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“…On the contrary, correlation coefficients between the CSP dummy variable and DeltaGDP j are mildly negative (-0.412**) for both the contemporaneous CSP dummy and the CPS dummy lagged 1 year (-0.325**). It seems there is reason to hypothesize the economic crisis had a positive effect on a company's involvement in strategic CSP over ad hoc CSP, similar to the results of Chih, Chih, & Chen (2009). These scholars conclude financial firms act in more socially responsible ways to enhance their competitive advantages when market competition is intense.…”

Section: Figure 4 Csp Maturity Trend 2005-2007mentioning

confidence: 53%

Strategic versus Ad-hoc Corporate Social Performance: An Analysis of CSP Maturity and Its Relationship to Corporate Financial Performance

Škudienė¹,

McClatchey²,

Kancleryte³

2012

JMS

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This paper extends empirical research that examines the Corporate Social Performance (CSP)-Corporate Financial Performance (CFP) relationship. Previous studies display mixed findings with no unified evidence regarding the CSP-CFP relationship's direction or impact. We introduce the concepts of strategic CSP and ad-hoc CSP, which we collectively term "CSP maturity." Using panel data on 86 large European banks and insurance companies, we investigate whether there is a relationship between a company's financial performance (CFP) and CSP maturity and, if a relationship is present, its direction and causality. Correlation analysis suggests CSP maturity and CFP are negatively related to one another; independent sample t-tests show statistically significant different means of ROA and ROS for companies engaged in strategic and ad-hoc CSP. Ad-hoc companies were on average associated with better ROA and ROS. No significant difference was present for ROE. In contrast, regression analysis did not show a relationship between CSP maturity and CFP, suggesting CSP maturity does not have an impact on CFP nor can CFP be used to explain CSP maturity. The results of this study may be limited in their generalizations because the data includes 2007-2008; a period of time the global economy experienced a major recession.

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On the Determinants of Corporate Social Responsibility: International Evidence on the Financial Industry

Abstract: corporate social responsibility (CSR), Dow Jones Sustainability Index, institutional theory, investor protection, legal enforcement,

Cited by 418 publications

References 28 publications

The Relation between Sustainability Performance and Stock Market Returns: An Empirical Analysis of the Dow Jones Sustainability Index Europe

The Relation between Sustainability Performance and Stock Market Returns: An Empirical Analysis of the Dow Jones Sustainability Index Europe

A Comparative Review on Company Specific Determinants for Sustainability Reporting in United Kingdom (UK) and Malaysia

Strategic versus Ad-hoc Corporate Social Performance: An Analysis of CSP Maturity and Its Relationship to Corporate Financial Performance

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