Stakeholder management, <scp>CSR</scp> commitment, corporate social performance: The moderating role of uncertainty in <scp>CSR</scp> regulation

Despite the burgeoning interest in environmental, social and governance (ESG) ratings, current results regarding ESG rating-performance relationship are inconclusive. Since what affects this disagreement is ambiguous, we examine how internal control weaknesses (ICW) may affect the relationship between ESG rating and a firm's performance.In fact, employing a sample of French listed firms during the period between 2012 and 2018, we predicted and found that both ICW and ESG ratings have a positive and significant influence on a firm's performance. In addition, the results indicate that ICW negatively and significantly moderates the relationship between ESG ratings and corporate performance. Moreover, the robustness of the results is checked through the generalized method of moments regression. We also offer theoretical and practical implications to drive policymakers and businesses to assure sustainable development.We expect that our study can help managers to strengthen their internal resources, such as the internal control (IC) and ESG ratings to improve a firm's performance.

Section: Introductionmentioning

confidence: 99%

Environmental, social and governance ratings and firm performance: The moderating role of internal control quality

Boulhaga

Bouri

Elamer

et al. 2022

“…Corporate social responsibility (CSR) refers to business practices that focus not only on profit but also on social and environmental performance and stakeholder engagements. Practicing CSR should be a new norm of doing business and corporations have been under pressure to practice doing well by doing good (Adomako & Tran, 2022; Helmig et al, 2016; Leonidou et al, 2016). Given investors' awareness of the social and environmental impacts on society, corporations are under pressure to engage with stakeholders to come up with CSR initiatives, leading to sustainable development.…”

Section: Introductionmentioning

confidence: 99%

“…be a new norm of doing business and corporations have been under pressure to practice doing well by doing good (Adomako & Tran, 2022;Helmig et al, 2016;Leonidou et al, 2016). Given investors' awareness of the social and environmental impacts on society, corporations are under pressure to engage with stakeholders to come up with CSR initiatives, leading to sustainable development.…”

mentioning

confidence: 99%

CSR variability, managerial risk aversion, and hostile takeover threats

Likitapiwat

Treepongkaruna

Jiraporn

2022

The quiet life hypothesis argues that, when managers are insulated from the discipline of the takeover market, they tend to be less ambitious, avoiding risky and complex investments that require more managerial time and efforts. In other words, they prefer to live a "quiet life." Exploiting a distinctive measure of takeover vulnerability principally based on the staggered passage of state legislations, we investigate the quiet life hypothesis using corporate social performance. Our results show that more takeover exposure significantly raises CSR variability, consistent with the prediction of the quiet life hypothesis, where managers adopt riskier CSR strategies and investments when they are more exposed to takeover threats, resulting in higher CSR volatility. Specifically, an increase in takeover exposure by one standard deviation raises CSR variability by 5.23%-6.73%. Additional analysis corroborates the results, including propensity score matching, instrumental-variable analysis, Lewbel's heteroscedastic identification, and entropy balancing.

“…More consideration should be paid to emerging economies as these economies are in the waves of globalisation and liberalisation, hence possess different attributes as compared to the developed markets. Despite the tremendous growth achieved in their economic activities, emerging markets are also dealing with pragmatic challenges such as dense population and resource deficiencies (World Bank, 2020), inadequate infrastructure, higher corruption index (Transparency International, 2019), ineffective legal and investor protection (Adomako & Tran, 2022), as well as weak government enforcement, structure, and standard (Alshbili et al, 2020). In the light of the need for socially responsible investing and financing by banks in the emerging markets context, it is essential to investigate the factors that drive or impede the level of CSRD.…”

Section: Introductionmentioning

confidence: 99%

Do foreign banks disclose corporate social responsibility practices more than their local counterparts? Empirical evidence of an emerging market context

Lui

Zainuldin

2022

This study examines the levels of corporate social responsibility disclosure (CSRD) between foreign and local banks in Malaysia by engaging the reconciliations of the stakeholder theory and resource‐based view. Additionally, independent directors, portrayed as unique internal resources, may affect the CSRD level. Using the panel data of 37 commercial banks retrieved over the period between 2010 and 2017, OLS and robust regressions revealed that the local banks disclosed more CSR information than their foreign banks' counterparts, and the increasing number of independent directors on the board produced lower CSRD. However, the interaction term offered new insight that the independent directors are acting as an effective resource for the foreign banks with a highly concentrated ownership environment. This gives a nuanced understanding of the proposed integrative theory to stimulate foreign banks' more social and environmental performances.