Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis

Lins, Karl V.; Servaes, Henri; Tamayo, Ane

doi:10.2139/ssrn.2555863

Cited by 327 publications

(648 citation statements)

References 71 publications

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“…Their study shown a positive relation between CSR disclosure and financial performance. Lins et al (2017) confirm this theory, showing that during the 2008-2009 financial crisis, firms with high CSR factor, had stock returns that were four to seven percentage points higher than firms with low social capital. In fact this firms firms also experienced higher profitability, growth, and sales per employee relative to low-CSR firms, and they raised more debt.…”

Section: Literature Reviewsupporting

confidence: 61%

Corporate Responsibility and ROA: Evidence from the Italian Stock Exchange

Bollazzi

Risalvato

2018

Asian Economic and Financial Review

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Article History JEL Classification:G14, G15, G11.The purpose of this paper is to test the importance of the Corporate Social Responsibility factor on the ROA in a sample of newly listed companies on the Italian Stock Exchange. The study analyzes 84 IPOs listed at the Borsa Italiana in the period between 2009 and 2015. The authors want to test if there is an advantage in terms of better return on assets when companies consider the drafting of a sustainability report, the presence of environmental responsibility, the management of supplier relationships, the information transparency and fairness, versus those companies which are not seen as responsible in these areas. The authors want to test the relationship between ROA and ESG Corporate Responsibility factors using a unpaired t-tests. The statistical analysis shows that not all factors contribute to the improvement of performance in the newly listed companies, but it seems to have a greater ROA only the companies that take on responsibilities from an environmental perspective. Contribution/ Originality:This research contributes to the literature on CSR factor, in fact as it has been shown that not all factors contribute to the improvement of performance. The authors find that environmentally friendly companies seem to have a greater ROA.

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Section: Literature Reviewsupporting

confidence: 61%

Corporate Responsibility and ROA: Evidence from the Italian Stock Exchange

Bollazzi

Risalvato

2018

Asian Economic and Financial Review

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“…Corporate sustainability has become one of the mainstream research topics from both a managerial and financial perspective. From a managerial stream of research, several studies highlight the benefits of environmental, social, and governance issues (ESG criteria) on firm value (Fatemi, Glaum, & Kaiser, 2017;Harrison & Wicks, 2013) and financial performance (Friede, Busch, & Bassen, 2015;Lins & Servaes, 2017). Despite the increasing interest in this issue, the effect of environmental, social, and governance issues on overall firm risk by jointly considering debt financing still remains an open, entangling debate (Albuquerque, Durnev, & Koskinen, 2014;Lee & Faff, 2009).…”

Section: Introductionmentioning

confidence: 99%

“…In other words, banks and financial institutions exclusively rely on risk sensitivity parameters, and they are still adopting lending practices by estimating risk against the default of borrowers (Zeidan et al, 2015). This evidence leads us to claim that this estimation does not price the potential value the company may be able to set up with social initiatives among all stakeholders and the community, even if the positive impact of the ESG factor on firm value has already been confirmed (Cellier & Chollet, 2016;Fatemi et al, 2017;Gutsche, Schulz, & Gratwohl, 2017;Lins & Servaes, 2017). ESG commitments may serve as risk mitigation on their credit rating in two ways: ESG factors affect borrowers' cash flows and companies' default probability estimation.…”

Section: Introductionmentioning

confidence: 99%

The Linkage between ESG Performance and Credit Ratings: A Firm-Level Perspective Analysis

Devalle¹,

Fiandrino²,

Cantino³

2017

IJBM

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This paper investigates the effect of environmental, social, and governance (ESG) performance on credit ratings. We argue that ESG factors should be considered in the credit analysis and the creditworthiness evaluation of borrowers because they affect borrowers' cash flows and the likelihood of default on their debt obligations. Consequently, we develop our research by firstly reviewing the literature regarding ESG commitments within financial decision-making processes and then addressing the relation between ESG performance and the cost of debt financing. We reveal no unanimous results and no clear-cut boundaries on this matter yet. Secondly, to disentangle this relationship, which is not well defined by scholars, we empirically investigate the nexus between ESG performance and credit rating issues on a sample of 56 Italian and Spanish public firms for which ESG performance in 2015 was achieved. Our final sample includes 15 variables for 56 observations: 840 items are under analysis. Our findings suggest that ESG performance, especially concerning social and governance metrics, meaningfully affects credit ratings. We do not sort out significant results referring to environmental scores, so further research is needed to investigate this ever-growing matter and strengthen this considerable nexus.

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“…In recent years corporate social responsibility has become increasingly important both to the consumer and the company [56]. It can affect the way that consumers evaluate a brand and can act as protection for a company in times of crisis [57,58]. Therefore, the encouragement of collaborative work between health researchers, charities and corporations would help to serve both sides.…”

Section: Further Promotional Techniquesmentioning

confidence: 99%

The untapped potential of the gaming community: A narrative review. (Preprint)

Goodman¹,

McFerran²,

Purves³

et al. 2018

Preprint

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Video gamers are a population at heightened risk of developing obesity due to the sedentary nature of gaming, increased energy intake and the disruption caused to their sleep. This increases their risk of developing a number of non-communicable diseases. To date, research seeking to improve health behaviours has focussed on developing novel video games to promote behaviour change. Although positive results have emerged from this research, the success has been limited due to the lack of transferability to more mainstream games and the focus on children and adolescents. However, the gaming community has a number of unique aspects which, in comparison to the development of new video games, have received less attention. Research has found that advertising can have implicit effects on individual's memories which could influence their later decisions. Yet the effect of the exponential growth of in-game advertisements, and brand sponsorship of gaming events and professional gamers, has not been explored in the gaming community. Nor has the possibility of using advertising techniques to encourage positive health behaviours within games or at these events. Research suggests that virtual communities can be effective at disseminating health information, but the efficacy of this needs to be explored utilising known community influencers within the gaming community. The purpose of this paper is to highlight these under-researched areas that have the potential to encourage positive health behaviour among this community.

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Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis

Cited by 327 publications

References 71 publications

Corporate Responsibility and ROA: Evidence from the Italian Stock Exchange

Corporate Responsibility and ROA: Evidence from the Italian Stock Exchange

The Linkage between ESG Performance and Credit Ratings: A Firm-Level Perspective Analysis

The untapped potential of the gaming community: A narrative review. (Preprint)

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