A risk management perspective on CSR and the marginal cost of debt: empirical evidence from Europe

Kordsachia, Othar

doi:10.1007/s11846-020-00392-2

Cited by 34 publications

(32 citation statements)

References 117 publications

(155 reference statements)

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“…Reputation is not constructed with raw information about the firm that stakeholders find for themselves (Fombrun 1996 2001 ; Zaheer and Bell 2005 ); rather, the information is filtered and validated by other users whose opinions we trust and by secondary stakeholders providing information that may either corroborate or undermine that issued by firm (Origgi 2018 ). This information may even go so far as to cancel out the positive effects of transparency between the firm and the market on the firm's competitive position (Kossovsky 2010 ) or to reduce financing costs (Kordsachia 2020 ). It is not easy to gain a reputation for quality, the loyalty of suppliers or the trust of customers.…”

Section: Hypothesesmentioning

confidence: 99%

Asset tangibility, information asymmetries and intangibles as determinants of family firms leverage

2022

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Using a sample of Spanish tourism small and medium-sized firms, we have tested the impact of family control, publicly-available information and tangibility on financial structure, providing a multi-theoretical model that incorporates contributions from the classical theory of finance, inspired by agency theory, the behavioural theory of the firm and strategic theory. The results point to the need to jointly consider the effects of information transmission practices, asset investment decisions and ownership structures on debt capacity. The results show how family control is associated with propensity to take on debt, so that the desire to maintain social control and socioemotional wealth prevails over risk aversion, being the relationship between family ownership and leverage more complex and contingent than has been assumed in financial and behavioural models. In addition, this study contributes further evidence on the importance of family reputational intangibles, showing a positive indirect effect on firms’ leverage capacity and relating to the gap left by finance theory regarding the value of intangibles for debt, which has meant that their value in reducing information asymmetries in the capital market has been overlooked.

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Section: Hypothesesmentioning

confidence: 99%

Asset tangibility, information asymmetries and intangibles as determinants of family firms leverage

2022

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“…A growing body of academic literature investigates the influence of institutional investors as a key corporate governance mechanism that affects invested firms' nonfinancial performance (Dam and Scholtens 2012;Dyck et al 2019;Gloßner 2019;Kim et al 2019a;Xiang et al 2020). This specific investigation of institutional investors is a result of their greater influence on corporate decision-making in recent years (Shleifer and Vishny 1997;Aghion et al 2013;Sikavica et al 2018;Kordsachia 2020). Today, shares of the largest corporations around the world are owned by institutions rather than individuals (Dyck et al 2019).…”

Section: Content-driven Socially Responsible Investors and Corporate Environmental Performancementioning

confidence: 99%

Do sustainable institutional investors contribute to firms’ environmental performance? Empirical evidence from Europe

Kordsachia¹,

Focke

Velte

2021

Rev Manag Sci

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In light of current climate change discussions, this paper analyzes the effect of ownership structure on a firm’s environmental performance with a subsequent focus on corporate emission reduction. Based on a cross-national European sample consisting of 7384 firm-year observations between 2008 and 2017, this study explores the relationship between sustainable institutional investors and environmental performance. In line with prior research and embedded in an agency theoretical framework, the nature of institutional investors may act as a stimulating driver towards green business practices. Sustainable institutional investors are defined based on their signatory status to the UN Principles for Responsible Investment and their (long-term) investment horizons. The first classification stems from a content-driven sustainability perspective, while the second is derived from temporal sustainability. The results indicate that sustainable institutional ownership is positively associated with a firm’s environmental performance. Further investigations reveal that sustainable institutional investor ownership is also positively associated with firms’ willingness to respond to the Carbon Disclosure Project. These results indicate a higher carbon-risk awareness in firms with greater sustainable institutional investor ownership. Our paper significantly contributes to prior empirical research on institutional ownership and environmental performance and offers useful theoretical and practical implications. It focusses on a still-underdeveloped research area, namely organizations and their relationships with the natural environment, including institutional equity ownership as a driver towards greener practices on a corporate level.

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“…Looking into the originality and novelty of the present study, there are several studies which have covered several aspects in the different contexts of CSR and business performance (Ghardallou, 2022;Saeidi et al, 2015;Tiep et al, 2021), CSR and gender-related (Berényi & Deutsch, 2017;Birindelli et al, 2019;Lu, F. et al, 2021;Lu, J. et al, 2020;Tefera & He, 2020), CSR and employees related (Brieger et al, 2020;Jia et al, 2019;Kim & Scullion, 2013;Kunz, 2020), CSR and financial performance (Kim et al, 2018;Maqbool & Zameer, 2018), CSR and risk management (Chollet & Sandwidi, 2018;Kordsachia, 2020). A lot has been done in the area of CSR.…”

Section: Discussionmentioning

confidence: 99%

Do owner-manager demographics in SMEs matter for corporate social responsibility?

Çera

Khan²,

Bláhová³

et al. 2022

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Research background: According to the EU agenda, CSR should be considered an integral element of the current organizational strategy, including SMEs. While the debate continues about the optimal approach for successful CSR adaptation in SME, yet there is a need to shed light on the impact of owner-manager?s demographics on CSR practices. Purpose of the article: The paper aims to examine whether owner-manager?s demographics (age, gender, education) matter for the implementation of CSR or not. Methods: The study is based on a questionnaire filled in by owner-managers of SMEs operating in Czechia (454) and Slovakia (368). Factor analysis and nonparametric methods are used to test the hypotheses. Findings & value added: This study shows that the relationships between CSR and owner-manager?s demographics are not alike between Slovakia and Czechia. Compared to owners, the evidence shows that the Czech managers are more oriented toward the CSR practices, while in Slovakia there is no difference. Such finding can be explained by Hofstede culture difference. In addition, analysis demonstrates that female Slovaks are more oriented to CSR than men, while it is not true in Czechia. Moreover, Czech individuals who graduated in the same field as their business are more oriented to the CSR, whereas in Slovakia this is not. In addition, young and old Slovak entrepreneurs are more oriented to the CSR than those 35-55 years old, manifesting a U-shape type of relationship. The originality of this work is manifested by the fact that it enriches the literature since it is among the first studies to analyze the relationships between owner-manager?s demographics and CSR in the SME segment for Czechia and Slovakia.

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A risk management perspective on CSR and the marginal cost of debt: empirical evidence from Europe

Cited by 34 publications

References 117 publications

Asset tangibility, information asymmetries and intangibles as determinants of family firms leverage

Asset tangibility, information asymmetries and intangibles as determinants of family firms leverage

Do sustainable institutional investors contribute to firms’ environmental performance? Empirical evidence from Europe

Do owner-manager demographics in SMEs matter for corporate social responsibility?

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