The influence of CSR on firm value: an application of panel smooth transition regression on Taiwan

Chen, Roger C. Y.; Lee, Chen-Hsun

doi:10.1080/00036846.2016.1262516

Cited by 76 publications

(56 citation statements)

References 64 publications

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“…The above table shows that, firstly, the corporate social responsibility disclosure index (CSRDI) had a positive and insignificant impact on the firm value (PBV). These results were consistent and support the research by [13], and [14]. This proves that the quality of CSR disclosure in the manufacturing industry sector of consumer goods industry listed on the BEI not fully follow the standards issued by GRI G3.…”

Section: Roa = (Net Profit After Tax) / (Total Assets) X 100%supporting

confidence: 91%

Corporate Social Responsibility Disclosure, Leverage, and Firm Value: The Moderating Role of Profitability

Irwansyah¹,

Ginting²,

Kusumawardani³

et al. 2018

Proceedings of the Mulawarman International Conference on Economics and Business (MICEB 2017)

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Corporate Social Responsibility (CSR) is a strategic investment that brings many economic benefits for the company in the long term. Many benefits obtained by the company with the implementation of CSR, among other products increasingly favored by consumers and companies interested investors. CSR can be used as a new marketing tool for the company, if it is implemented continuously. Therefore, CSR plays an important role in increasing the value of the company as a result of increased sales of the company by conducting various social activities in the surrounding environment. This paper investigates the effects of Corporate Social Responsibility Disclosure (CSRD) and Leverage on Firm Value with Profitability as Moderating Variable. Analysis tool used in this study is the Moderated Regression Analysis (MRA) and Multiple Linear Regression analysis. There were 68 firm-years of Indonesia listed companies with CSR reports from 2012 to 2015. The paper found that leverage influences the firm value. However, CSRD did not affect the firm value. In addition, profitability as moderating variable was proven and capable of strengthening the relationship between corporate social responsibilities with firm value and strengthens the relations between leverage with firm value. The findings have important implications for practitioners with respect to CSR disclosure in addressing firm value.

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Section: Roa = (Net Profit After Tax) / (Total Assets) X 100%supporting

confidence: 91%

Corporate Social Responsibility Disclosure, Leverage, and Firm Value: The Moderating Role of Profitability

Irwansyah¹,

Ginting²,

Kusumawardani³

et al. 2018

Proceedings of the Mulawarman International Conference on Economics and Business (MICEB 2017)

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show abstract

“…CSR is a value creator for society and for the business, at least when it exceeds a given threshold (Chen and Lee, ). It needs to be understood along its determinants to ensure that its potential is fully gathered.…”

Section: Introductionmentioning

confidence: 99%

Do Distinct CSR Categories have Distinct Determinants? The Roles of Market Structure and Firm Size

Acabado

Branca

Catalão‐Lopes

et al. 2019

European Management Review

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Despite the existing vast literature on corporate social responsibility (CSR), there is a lack of research on the determinants of CSR categoriesenvironment, employees, community, and governance. Why do some firms dedicate more effort to community, while others focus on environment or employees? We address these issues with special attention to the roles of market structure and firm size, controlling for industry, geography, regulatory and macroeconomic variables. Answers are relevant for firms' strategic decisions, taking into account what rivals likely choose, in a world where CSR is often a competition tool. Public authorities also benefit on choosing focus: lack of competition; small or large sized firms; which categories are more affected. We find that all CSR categories profit more from a competitive setup, particularly employees and environment, and from larger firms, mainly environment. Size and market concentration thus contribute in different directions to CSR, contradicting their usually presumed positive association.

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“…() further confirmed that integration of CSR into operational and management strategies, as well as corporate governance policies, increases the value of an enterprise. Similarly, Chen and Lee () indicated that when CSR activities over a certain threshold, operating expenses use to decrease and positively affect a firm's value.…”

Section: Introductionmentioning

confidence: 99%

Corporate Social Responsibility and Firm Idiosyncratic Risk in Different Market States

Chen

Hung

Lee

2018

Corp Soc Responsibility Env

Self Cite

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This study explored the influence of corporate social responsibility (CSR) on idiosyncratic risk. Referring to an approach used by Pagan and Sossounov, we separated the sample period into up-market, down-market, and correction conditions and observed the changes in the influence of CSR on idiosyncratic risk in different market states. The results find that firms with better CSR performance can reduce their idiosyncratic risk. Furthermore, in different market states, CSR can significantly decrease idiosyncratic risk, whereas firms with poorer CSR performance have more idiosyncratic risk. Our findings are beneficial for firms that can use CSR engagement to adjust their business strategy and reduce operational uncertainty. Therefore, CSR engagement can function as a tool for risk management. engagement positively influences consumer preferences, leading to increased sales. Guenster et al. (2011) confirmed that investors prefer to invest in companies with good CSR performance. In addition, Duran and Bajo (2014) pointed out that over 80% of multinational enterprises have listed CSR as one of their global management strategies. Marti et al. (2015) conducted research into the relationship between CSR and financial performance during periods of financial crisis. They discovered that those companies with higher levels of CSR engagement exhibited more stable financial performance. Such findings imply that companies with higher levels of CSR engagement experience lower operating risks. Su et al. (2016) studied firms targeting emerging markets and found that those participating in CSR activities exhibited better reputations, as well as increased operating and revenue performance. Therefore, it seems that not only does fulfilment of CSR exert positive effects on operating and financial performance, but it further lowers operational costs, increases management efficiency, creates new business models, and increases research and development (R&D) budgets as well as opportunities for future growth (Porter and Kramer, 2006;Chen et al., 2013). Ioannon and Serafeim (2015) pointed out that market analysts forecast better financial performance for firms with higher levels of CSR engagement. Kumar et al. (2016) believed that fulfilment of CSR strengthens interaction with a firm's stakeholders and re-adjusts its operating strategies, leading to increases in both capital expenses and profits. further confirmed that integration of CSR into operational and management strategies, as well as corporate governance policies, increases the value of an enterprise. Similarly, Chen and Lee (2017) indicated that when CSR activities over a certain threshold, operating expenses use to decrease and positively affect a firm's value.Moreover, Doh et al.'s (2009) study on the relationship between CSR and stock price performance clearly indicated that firms with better CSR performance have better return on equity (ROE), suggesting that investors have shifted their attention from maximization of a shareholder's profits to the interaction between a company ...

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The influence of CSR on firm value: an application of panel smooth transition regression on Taiwan

Cited by 76 publications

References 64 publications

Corporate Social Responsibility Disclosure, Leverage, and Firm Value: The Moderating Role of Profitability

Corporate Social Responsibility Disclosure, Leverage, and Firm Value: The Moderating Role of Profitability

Do Distinct CSR Categories have Distinct Determinants? The Roles of Market Structure and Firm Size

Corporate Social Responsibility and Firm Idiosyncratic Risk in Different Market States

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