The Effect of Ownership Structure, Profitability, Leverage, and Firm Size on Corporate Social Responsibility (CSR)

Swandari, Fifi; Sadikin, Ali

doi:10.21512/bbr.v7i3.1792

Cited by 23 publications

(23 citation statements)

References 12 publications

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“…Inventory intensity (INV) is positively associated with all five CSR variables. LEV is negatively associated with all CSR scores except governance scores (GOV), suggesting that high-leveraged firms engage in less CSR, consistent with Swandari and Sadikin (2016). This is because a high debt ratio requires large interest payments and hence leaves less budget to fund CSR programs.…”

Section: Results Of Multivariate Regressionssupporting

confidence: 53%

Corporate social responsibility (CSR) in Canadian family firms

Zeng

2020

SRJ

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Purpose The purpose of this paper is to examine corporate social responsibility (CSR) activities in Canadian family firms. Design/methodology/approach This paper is an empirical work using a sample of Canadian listed companies for eight years between 2010 and 2017. Findings Relying on five measures for CSR, this paper finds that, compared with other listed firms, family listed firms have a higher level of CSR engagement. Further tests show that family-named family firms engage in more CSR activities; family firms with second largest shareholders engage in more CSR activities; and family firms affiliated with large business groups engage in more CSR activities. However, family firms whose family members are CEOs, presidents or board chairpersons engage in less CSR engagement. Originality/value This paper contributes to the current CSR literature by highlighting the importance of family firm heterogeneity in shaping a firm’s CSR practices. It focuses on four characteristics of Canadian family firms that are potentially connected to CSR, namely, family-named family firms; family firms with family members being CEOs, presidents or chairpersons; family firms with second largest shareholders and family firms affiliated with large business groups.

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Section: Results Of Multivariate Regressionssupporting

confidence: 53%

Corporate social responsibility (CSR) in Canadian family firms

Zeng

2020

SRJ

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“…Additionally, Haniffa and Cooke (2005) suggest considering the values, motives and choices of those involved in CSR-related decisions within the company. Extant literature also supports this line of argument (Amran and Devi, 2008, Said et al, 2009, Meutia et al, 2017, Swandari and Sadikin, 2016, and Cahyani and Suryaningsih, 2016 who found foreign ownership has no significant influence on CSR.…”

Section: Foreign Ownership and Firm Social Performancementioning

confidence: 73%

The impact of board independence and foreign ownership on financial and social performance of firms: evidence from the UAE

Al‐Gamrh

Al‐Dhamari

Jalan

et al. 2020

JAAR

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PurposeThis study examines the impact of two different types of foreign ownership—by Arab and non-Arab investors on firms' financial and social performance. It then goes on to investigate how the degree of board independence affects the aforementioned relationship between these two types of foreign investors on firm performance.Design/methodology/approachThe sample for the study is a panel of all listed firms in the Dubai Financial Market (DFM) and the Abu Dhabi Securities exchange (ADX) from 2008 to 2012.FindingsResults indicate that while Arab foreign ownership affects firms' financial and social performance negatively, non-Arab foreign ownership does so, positively. Further tests indicate that board independence weakens the negative relationship between firm financial and social performance with foreign Arab ownership and deteriorate the relationship between firm financial and social performance and non-Arab foreign ownership.Research limitations/implicationsFuture studies may extend the coverage of the study by including other countries in the region and other identities of the foreign investors.Practical implicationsThis study may help policy makers in the UAE to improve the implementation and enforcement of existing regulations concerning corporate social responsibility (CSR) and board independence. It also highlights the need to look into the monitoring role of independent board members.Originality/valueThis is the first study to examine the role of board independence on the relationship between foreign ownership and firm's financial and social performance. To the best of our knowledge, this is the first paper that attempts to enrich the understanding of foreign ownership by classifying it into Arab versus non-Arab.

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“…Other studies highlighted the relation between CSR and financial leverage like the study of (Fbio, 2013) who concluded that CSR had an appositive effect on the cost of debt. (Fifi, 2016) found a negative relation between applying the activities of CSR and the leverage of the firm on the other side there are other studies supported the idea that there is a relation between the firms value and the CSR like (Yingix, 2013) who concluded that applying CSR activities affect the performance of the firm. (Kandhar, 2107) found that practicing CSR activities will lead to higher firm value.…”

Section: Conclusion and Recommendationmentioning

confidence: 87%

The Impact of Financial Leverage and CSR on the Corporate Value: Egyptian Case

Tarek¹

2019

IJEF

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The study aimed to analyze the effect of the capital structure of the corporate and its interference in corporate social responsibility activities on the firms corporate value during the time period from 2014-2017 the study tested the effect of financial leverage and CSR on the corporate value of the firms by testing 17 companies registered in the indicator of CSR in the Egyptian stock market through applying panel data analysis. After testing the effect of both variables together the study found that there is significant effect of financial leverage on corporate value while applying CSR activities has no effect on the corporate values which means that there is a lack in the awareness of investors about the importance of applying CSR activities in Egypt.

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The Effect of Ownership Structure, Profitability, Leverage, and Firm Size on Corporate Social Responsibility (CSR)

Cited by 23 publications

References 12 publications

Corporate social responsibility (CSR) in Canadian family firms

Corporate social responsibility (CSR) in Canadian family firms

The impact of board independence and foreign ownership on financial and social performance of firms: evidence from the UAE

The Impact of Financial Leverage and CSR on the Corporate Value: Egyptian Case

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