When does CSR motivate investors? A simulation study

Heimann, Marco; Lobre‐Lebraty, Katia

doi:10.3917/resg.129.0093

Cited by 4 publications

(3 citation statements)

References 57 publications

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“…Another example is practitioners who invest in companies with strong ESG management that are likely to outperform their competitors in the long run. The ESG analysis can be the deciding factor between otherwise identical companies or countries (Heimann and Lobre-Lebraty, 2018). If all other factors are equal, the practitioner will choose the company or country that performs better on its ESG analysis.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

Chouaibi

Rossi

2021

EMJB

167

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PurposeThe purpose of this paper is to investigate the direct and indirect links between environmental, social and governance (ESG) practices and financial performance using the mediate role of green innovation.Design/methodology/approachTo test the current study hypotheses, the authors applied linear regressions with a panel data using the Thomson Reuters ASSET4 and Bloomberg database from a sample of 115 UK and 90 Germany companies selected from the ESG index over the period 2005–2019.FindingsThe results show that the strengths ESG increase the firm value and the weaknesses decrease it. In addition, the authors find that green innovation fully mediates the relationship between ESG practices and financial performance in UK and Germany.Practical implicationsThe findings provide interesting implications to academics practitioners and regulators who are interested in discovering ESG score, financial performance and green innovation. The results also provide insights to regulators and the board of directors on future growth opportunities for the company and the country.Originality/valueThis study is unique in examining the mediation effect of green innovation on the relationship between ESG practices and financial performance.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

Chouaibi

Rossi

2021

EMJB

167

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“…With a natural experiment in China, they found differences in behavioral change between individual investors and institutional investors before and after a negative shock. Heimann and Lobre-Lebraty (2018) examined the relationship between individual investors’ reports on their motivations for socially responsible investing and their real investment behaviors. They found a mismatch between investor reports and their investing attitudes.…”

Section: Literature Reviewmentioning

confidence: 99%

Do investors’ reactions to CSR-related news communication differ by shareholder? An empirical analysis from Japan

Murashima

2020

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Purpose This paper aims to examine the differences in investors’ reactions toward firms’ corporate social responsibility (CSR)-related news announcements between individuals and institutions. Design/methodology/approach Analyzed by the short-term event study and ordinary least squares (OLS) methods using a unique CSR data set collected from newspapers in Japan from 2001 to 2016. Findings The study finds, first, the different reactions toward CSR-related news announcements among shareholders. Second, the findings indicate that individual investors are more sensitive to CSR-related positive news, whereas institutional investors are more concerned about the negative news, providing one of the reasons for mixed results in the studies on the CSR and financial performance linkage. Those findings indicate that CSR-related news affects investors’ behaviors differently based on their purpose, ability and accessible information. Practical implications This study deepens the understanding of the different investing behaviors toward CSR-related announcements by shareholder type. Second, different attitudes among investors require different investor relations (IR) approaches depending on the type. It also provides valuable implications not only for Japanese business managers or policymakers but also for those from countries with a similar stage of market maturity in the CSR context. Originality/value This paper is original in two ways. First, to the best of the author’s knowledge, this is the first paper to deepen the understanding of investors’ reactions toward CSR-related events through analysis by the main shareholder, which provides some insights into mixed results in the previous studies. Second, the original CSR data set collected from newspapers by the author allows the analysis to use a larger data set than other research, resulting in more robust conclusions.

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“…The source most used to learn about SEE issues was financial advisor (Nilsson et al., 2016). Advisors who frame sharing of ethical investment information as providing “special help” rather than pushing a product are the most likely to be successful (Heimann & Lobre‐Lebraty, 2018). Offering this “special help” would likely be well received by the nearly eight in ten Ontario investors who this survey found are interested in ethical investments.…”

Section: Discussionmentioning

confidence: 99%

Classifying responsible investors: Identifying clusters of Ontario investors

Piscitelli

2022

Ann Public Coop Econ

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Little empirical research has explored Canadian investors' interest in responsible investing. A variety of demographic and attitudinal characteristics can contribute to who makes ethical investments. Using a survey of 1,834 residents of Ontario, Canada three groups of investors are identified: those interested in responsible investments who actively avoid investing in some sectors, those interested in responsible investments who do not actively avoid any types of investments, and traditional investors that are not interested in responsible investing. Demographic and attitudinal variables that explain who falls into which group are explored.

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When does CSR motivate investors? A simulation study

Cited by 4 publications

References 57 publications

ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

Do investors’ reactions to CSR-related news communication differ by shareholder? An empirical analysis from Japan

Classifying responsible investors: Identifying clusters of Ontario investors

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