A Further Examination of the Impact of Corporate Social Responsibility and Governance on Investment Decisions

Cohen, Jeffrey P.; Holder‐Webb, Lori; Khalil, Samer

doi:10.1007/s10551-015-2933-5

Cited by 41 publications

(30 citation statements)

References 42 publications

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“…In the opposite direction, Cohen et al . () examine the impact good labour outcomes have on investment decisions and Edmans () demonstrates the positive impact employee satisfaction has on shareholder returns. The dual direction of these papers could be extended to other humans affected by corporations.…”

Section: Emerging Themesmentioning

confidence: 99%

Emerging new themes in environmental, social and governance investing: a systematic literature review

Daugaard

2019

Accounting & Finance

206

124

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Environmental, social and governance (ESG) investing is a large and influential industry. Its activities could be illuminated, appraised and improved by academic research. Unfortunately, research to date has focused on measuring return performance. A wider range of topics is necessary before research can properly inform investors, companies and regulators. This paper contributes to the challenge by systematically exploring the literature to reveal a richer array of topics: the heterogeneous nature of ESG investing, its costs and motivations, and its management literature origins. In addition to these established topics, five emerging themes are identified: the human element, climate change, fund flows, fixed income and the rise of non-Western players.

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Section: Emerging Themesmentioning

confidence: 99%

Emerging new themes in environmental, social and governance investing: a systematic literature review

Daugaard

2019

Accounting & Finance

206

124

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“…Increased CSR disclosure enhances the image (Adel et al, 2019) and the reputation of a company (Lev et al, 2010;Toms, 2002). CSR reporting also has a positive impact on investment decisions (Cohen et al, 2017) and indicates integrity in financial reporting (Pyo and Lee, 2013). Compared to companies not filing CSR reports, companies filing CSR reports have higher earnings quality (Kim et al, 2012;Pyo and Lee, 2013) and stronger financial health and economic stability (Erhemjamts et al, 2013).…”

Section: Strong Corporate Governancementioning

confidence: 99%

Does CSR reporting indicate strong corporate governance?

Chan

Creel

Song

et al. 2020

IJAIM

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Purpose This study aims to investigate the relationship between companies filing versus those not filing corporate social responsibility (CSR) reports and corporate governance. Design/methodology/approach The websites of US publicly traded companies were examined for commitment to CSR or sustainability reporting based on the preparation of voluntary reports. This information provided the CSR measure, the key independent variable in this study. The data used to compute discretionary accruals (based on the modified Jones model) were obtained from Compustat. Data on auditor tenure were retrieved from Audit Analytics. The number of members and financial experts on an audit committee were gathered from proxy reports filed with the US Securities and Exchange Commission. Findings Companies filing CSR reports have higher audit quality, higher audit committee quality, increased auditor tenure and lower auditor dismissal compared to those not filing CSR reports. The findings support stakeholder theory. Research limitations/implications This study’s utilization of multiple measures of corporate governance provides insight into the robustness of the relationship between CSR reporting and corporate governance. Further, this research uses a different measure of CSR reporting; that is, companies that voluntarily prepared separate CSR reports following or not following the Global Reporting Initiative (GRI) guidelines compared to reports prepared following the GRI guidelines. This approach increases the size and diversity (i.e. industries) of the sample (Kolk, 2003; Waddock and Graves, 1997). Practical implications The findings suggest that companies engage in CSR reporting to indicate strong corporate governance. Originality/value This study uses multiple measures of corporate governance to demonstrate the positive relationship between CSR behavior (measured via filing of CSR reports) and corporate governance.

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“…Investors and stakeholders positively value Corporate Social Responsibility (CSR) including sustainability as it has a positive effect on company reputation and decreases thecost of capital (Martinez-Ferrero, Banerjee, & Garcia-Sanchez, 2016). Organizations that practice sustainability may benefit from being involved in socially responsible investing by becoming part of mutual funds solely investing in socially and environmentally friendly companies (Holder-Webb, Cohen, Nath, & Wood, 2009;Cohen, Holder-Webb, & Khalil, 2015). Companies that report more transparent information related to CSR and sustainability have a higher level of corporate governance across the organization (Chan, Watson, & Woodliff, 2013).…”

Section: Introductionmentioning

confidence: 99%

Teaching Sustainability in an Accounting Classroom

Creel

Paz

2018

Discourse and Communication for Sustainable Education

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Sustainability has become an important issue in the world today for both business and society. As accounting faculty members, it is important that we add aspects of sustainability into accounting classrooms to help prepare students for what they will see in the workplace. The article aims to discuss areas for faculty to share with students the importance of sustainability. The methods of discussing sustainability in the classroom come from the teaching experiences of the authors. Cost, managerial, and intermediate accounting courses, as well as auditing at both the undergraduate and graduate levels, serve as conduits for sustainability concepts. Examples include discussing the triple bottom line, examining CSR reports and assurance services for them, talking about required environmental reporting and integrated reporting, and examining green balanced scorecards. The hope is that faculty can help students learn not only accounting but how to be better citizens with a global perspective on sustainability.

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A Further Examination of the Impact of Corporate Social Responsibility and Governance on Investment Decisions

Cited by 41 publications

References 42 publications

Emerging new themes in environmental, social and governance investing: a systematic literature review

Emerging new themes in environmental, social and governance investing: a systematic literature review

Does CSR reporting indicate strong corporate governance?

Teaching Sustainability in an Accounting Classroom

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