The impact of corporate social responsibility and risk management on financial performance: The case of Vietnamese textile firms

Tran, Hoang Long; Bui, Van Hung; Phan, Thi Thu Hien; Dau, Xuan Canh; Tran, Manh Dung; Do, Duc Tai

doi:10.5267/j.msl.2019.4.003

Cited by 9 publications

(5 citation statements)

References 15 publications

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“…Opposing our hypothesis (H8) , the coefficient of annual changes of board composition (ANCH) adversely affects performance. From CSR’s view, IBs and their windows are experienced as more profitable and the result is plausible with our hypothesis (H10) and the consequences of Gatsi et al (2016) and Tran et al (2019). Hence, socially responsible IBs can lessen the risk and heighten their performance to achieve the benefits of Maqasid-al-Shari’ah.…”

Section: Resultssupporting

confidence: 81%

Impacts of Sharīʿah supervision and corporate social responsibility on banks’ risk-taking behavior and profitability

Moudud‐Ul‐Huq

2021

IMEFM

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Purpose This paper aims to examine the impacts of both Sharīʿah supervision and corporate social responsibility on banks’ risk-taking behavior and profitability. The analysis empirically uses dynamic and balanced panel data from 12 banks of Bangladesh for 2010–2019. Design/methodology/approach Dynamic panel generalized method of moments has been used primarily to examine the effects of Sharīʿah supervision and corporate social responsibility on risk-taking behavior and profitability. Later, the authors validate the core results using three-stage least squares and incorporates alternative risk and profitability measures in the baseline equation. Findings This study finds that Sharīʿah supervision heterogeneously derives benefits for Islamic banks and Islamic windows. Though there is no significant impact of female diversity on risk relying on board diversification, the bank can strengthen profitability. On the one hand, the annual changes in board composition reduce (increase) risk (financial and stability efficiency) but compromise profitability. Notably, socially responsible banks have been characterized as risk-averse and better stabilized (in terms of solvency and efficiency), more efficient and profitable. Originality/value Very few studies are available in the current literature which examine the impacts of Sharīʿah supervision and corporate social responsibility on either bank performance or risk-taking in the developing economy’s context.

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Section: Resultssupporting

confidence: 81%

Impacts of Sharīʿah supervision and corporate social responsibility on banks’ risk-taking behavior and profitability

Moudud‐Ul‐Huq

2021

IMEFM

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“…The broader literature concerned with CSR and financial performance or firm value is largely focussed on developed Western markets, and particularly the US, but recent studies identify positive relationships between CSR and firm value or profitability in Asian markets (e.g. Tran et al, 2019). Our study complements this CSR-performance literature by investigating whether investment efficiency might be a channel, in which CSR is related to financial performance.…”

Section: Introductionmentioning

confidence: 89%

Do corporate social responsibility disclosures influence investment efficiency in the emerging markets of Asia?

Zamir

Shailer

Saeed

2020

IJMF

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PurposeCorporate investment efficiency ultimately influences economic development but is largely at the discretion of managers. Information asymmetries are problematic in emerging markets, but it is widely believed that corporate social responsibility (CSR) disclosures can reduce information asymmetries. This paper examines whether CSR disclosures influence corporate capital investment efficiency in emerging Asian markets.Design/methodology/approachInvestment inefficiency is measured as the residuals from an investment model that is constructed by combining variables from prior studies to obtain a more detailed specification. A CSR disclosure index (CSRDI) is constructed from manually collected CSR disclosures for the largest corporations in each of the nine Asian emerging markets, as categorised by the MSCI Emerging Market Index, during 2015–2017. Underinvestments and overinvestments are regressed against the CSRDI, using a two-stage model to address the potential self-selection of CSR report issuers.FindingsThe results indicate that CSR disclosures reduce underinvestment for large firms but do not constrain overinvestment. These results are consistent with the propositions that, by increasing transparency or reducing information asymmetry, CSR disclosures can improve firm access to external finance needed to invest in profitable projects but cannot constrain entrenched managers who are not reliant on external finance.Originality/valueThis study extends the literature by analysing the impact of CSR disclosures on both underinvestments and overinvestments and by examining the CSR-investment efficiency across the nine emerging Asian markets. This enhances generalisability compared to single market studies. More generally, this study enhances the understanding of the role of non-financial disclosures in the Asian emerging markets, where corporate investment efficiency is important for economic development but where severe information asymmetry and agency conflicts between insiders and external investors are prevalent. Both the investment community and policymakers should benefit from enhanced understanding of factors that influence investment efficiency in those markets.

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“…The corporate social responsibility of tourism and hospitality businesses is measured from Le et al (2019); Manner (2010); Phan & Nguyen (2018) and Tran et al (2019) and it includes 29 indicators measured on a scale of 1 to 5 Likert with corresponding levels from totally disagree to strongly agree. Financial performance is measured through three dimensions: profitability, growth and market value of tourism and hotel businesses in Vietnam.…”

Section: Fig1 Research Modelmentioning

confidence: 99%

The role of corporate social responsibilities in tourism and hospitality: The case of Vietnam

Nguyena¹,

Pham²,

Than³

et al. 2020

10.5267/j.msl

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The main objective of this study was to assess the role of corporate social responsibility on tourism and hospitality in Vietnam. To accomplish this, we conducted a field survey and analysis on 886 tourism and hospitality in Vietnam over a 6-month period. The results show that corporate social responsibility helped businesses improve corporate reputation, increase customer satisfaction and improve financial performance of Vietnam tourism and hospitality. Customer satisfaction and corporate reputation had a statistically significant positive impact on the financial performance of these businesses. However, corporate reputation and customer satisfaction did not play a full mediate role in the relationship between corporate social responsibility and financial performance. Finally, we examined the moderate role of foreign ownership and size in the relationship between corporate social responsibility and financial performance, showing that both foreign ownership and firm size had a moderate role on the relationship between corporate social responsibility and financial performance. With the more percent of foreign owned, the implementation of corporate social responsibility, the stronger the impact on the financial performance, the less percentage of foreign owned, which means the implementation of corporate social responsibility had positive impact but less intense. The greater size of enterprises, the more corporate social responsibilities and the better financial performance. In contrast to the smaller businesses, the more corporate social responsibility, the worse financial performance. At the same time, we proposed several solutions to improve the corporate social responsibility for tourism and hospitality in Vietnam.

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The impact of corporate social responsibility and risk management on financial performance: The case of Vietnamese textile firms

Cited by 9 publications

References 15 publications

Impacts of Sharīʿah supervision and corporate social responsibility on banks’ risk-taking behavior and profitability

Impacts of Sharīʿah supervision and corporate social responsibility on banks’ risk-taking behavior and profitability

Do corporate social responsibility disclosures influence investment efficiency in the emerging markets of Asia?

The role of corporate social responsibilities in tourism and hospitality: The case of Vietnam

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