The effect of institutional investors’ distraction on firms’ corporate social responsibility engagement: evidence from China

Xiang, Cheng; Chen, Fengwen; Jones, Paul; Xia, Senmao

doi:10.1007/s11846-020-00387-z

Cited by 50 publications

(52 citation statements)

References 71 publications

(124 reference statements)

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“…A growing body of academic literature investigates the influence of institutional investors as a key corporate governance mechanism that affects invested firms' nonfinancial performance (Dam and Scholtens 2012;Dyck et al 2019;Gloßner 2019;Kim et al 2019a;Xiang et al 2020). This specific investigation of institutional investors is a result of their greater influence on corporate decision-making in recent years (Shleifer and Vishny 1997;Aghion et al 2013;Sikavica et al 2018;Kordsachia 2020).…”

Section: Content-driven Socially Responsible Investors and Corporate Environmental Performancementioning

confidence: 99%

Do sustainable institutional investors contribute to firms’ environmental performance? Empirical evidence from Europe

Kordsachia¹,

Focke

Velte

2021

Rev Manag Sci

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In light of current climate change discussions, this paper analyzes the effect of ownership structure on a firm’s environmental performance with a subsequent focus on corporate emission reduction. Based on a cross-national European sample consisting of 7384 firm-year observations between 2008 and 2017, this study explores the relationship between sustainable institutional investors and environmental performance. In line with prior research and embedded in an agency theoretical framework, the nature of institutional investors may act as a stimulating driver towards green business practices. Sustainable institutional investors are defined based on their signatory status to the UN Principles for Responsible Investment and their (long-term) investment horizons. The first classification stems from a content-driven sustainability perspective, while the second is derived from temporal sustainability. The results indicate that sustainable institutional ownership is positively associated with a firm’s environmental performance. Further investigations reveal that sustainable institutional investor ownership is also positively associated with firms’ willingness to respond to the Carbon Disclosure Project. These results indicate a higher carbon-risk awareness in firms with greater sustainable institutional investor ownership. Our paper significantly contributes to prior empirical research on institutional ownership and environmental performance and offers useful theoretical and practical implications. It focusses on a still-underdeveloped research area, namely organizations and their relationships with the natural environment, including institutional equity ownership as a driver towards greener practices on a corporate level.

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Section: Content-driven Socially Responsible Investors and Corporate Environmental Performancementioning

confidence: 99%

Do sustainable institutional investors contribute to firms’ environmental performance? Empirical evidence from Europe

Kordsachia¹,

Focke

Velte

2021

Rev Manag Sci

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“…External stakeholders including workers, customers, competitors, and the government have pressurized companies in terms of their concerns related to sustainability [58]. Furthermore, CSR has also been regarded as a substantial corporate policy universally [59]. Businesses are expected to run corresponding to common societal attitudes to be productive.…”

Section: Csr and Sustainable Innovation Ambidexteritymentioning

confidence: 99%

The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital

et al. 2021

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As the concept of corporate social responsibility advances, it is crucial to recognize the broad roles of sustainability and the Sustainable Development Goals (SDGs) influencing the implementation of corporate social responsibility (CSR) initiatives. This research contributes to the expanding field of CSR, sustainable innovation ambidexterity (SIA), sustainable supply chain management (SSCM), and second-order social capital (SOSC). This research produced a theoretical framework based on social exchange theory, social capital theory, and Carroll’s CSP model to investigate the impact of CSR on SIA, SSCM, and SOSC. Furthermore, this study examined the mediating effects of SSCM and SOSC on the correlation between CSR and SIA. Additionally, this study presents a model to explain the impact of SSCM and SOSC on SIA. This study concentrated on top-level managers of several manufacturing businesses situated in Pakistan. A total of 42 manufacturing businesses were chosen utilizing a convenience cluster sampling method. As per the results of this research, CSR was discovered to have a positive impact on SSCM, SIA, and, SOSC. Moreover, SOSC and SSCM were found to be in a significant relationship with SIA. Finally, SOSC and SSCM fully mediated the relationship between CSR and sustainable innovation ambidexterity. This research can guide companies by effectively delivering their finances in CSR initiatives. The findings also suggest that companies should concentrate on improving their CSR initiatives because CSR has a significant effect on SIA. The SDGs provide a road map for companies that can assist them to tactically manage their CSR initiatives according to the international and national sustainable development guidelines. Hence, the CSR–SDG tie is essential for the improvement in the role of CSR in sustainable development. Moreover, to improve and measure SSCM, SOSC, and SIA, policymakers and general managers should devote efforts to CSR.

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“…Numerous firms have encountered pressure from firms' shareholders, for instance, customers, competitors, government, and workers to express societal and ecological concerns [43]. Recently, CSR has been deemed a substantial business strategy worldwide [44]. Furthermore, there is much research obtainable on CSR; however, there is no specific description of CSR.…”

Section: Corporate Social Responsibility and Sustainable Innovation Ambidexteritymentioning

confidence: 99%

The Role of Corporate Social Responsibility in Supporting Second-Order Social Capital and Sustainable Innovation Ambidexterity

2021

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This research contributes to the developing literature on CSR, second-order social capital, and sustainable innovation ambidexterity by (1) offering a complete theoretical framework grounded on related theories by clarifying the associations between the four components of CSR proposed by Carroll, because this model suggests a company to be a responsible member of the society by following the required laws while generating profits and conducting philanthropic initiatives, SSC, and sustainable innovation ambidexterity, and (2) testing this framework in a new setting and with a new target population. This study focuses on the top-level management of different manufacturing companies located in Pakistan. A total of 34 manufacturing industries were selected using a cluster sampling technique based on their proximity in the selected cluster. Geographical location and industry type were selected as the criteria to group the industries in clusters. The data collected from 220 top and middle-level managers were analyzed using a partial least square method while the moderation analysis was conducted by using variance analysis. According to the findings of this study, economic, ethical, legal, and philanthropical responsibilities of CSR were all found to have a positive influence on second-order social capital. The economic, ethical, and legal responsibility of CSR did not influence sustainable innovation ambidexterity, whereas the philanthropical responsibility of CSR was found to have a positive influence on sustainable innovation ambidexterity. The findings of this research study will allow the managers to identify the right mix of CSR initiatives required to manage SSC and sustainable innovation exploitation and exploration techniques.

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The effect of institutional investors’ distraction on firms’ corporate social responsibility engagement: evidence from China

Cited by 50 publications

References 71 publications

Do sustainable institutional investors contribute to firms’ environmental performance? Empirical evidence from Europe

Do sustainable institutional investors contribute to firms’ environmental performance? Empirical evidence from Europe

The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital

The Role of Corporate Social Responsibility in Supporting Second-Order Social Capital and Sustainable Innovation Ambidexterity

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