Carrot or Stick? CSR and Firm Financial Performance

Ma, Chen; Latif, Yasir

doi:10.1007/s10551-023-05336-w

Cited by 10 publications

(7 citation statements)

References 54 publications

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“…Previous studies have found that customers may be skeptical of firm’s motives when implementing CSR initiatives (Chen and Latif, 2023). Kim et al.…”

Section: Discussion Contributions To Literature Managerial and Practi...mentioning

confidence: 99%

Corporate social responsibility initiatives of banks and customers’ selection of banks in Hong Kong

Ha,

Wong,

Loh

2024

JABES

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PurposeThis study examines whether corporate social responsibility (CSR) initiatives positively impact customers’ selection of retail banks in Hong Kong (HK) and identifies which CSR domains affect customers’ selection of banks.Design/methodology/approachThis study adopted a quantitative approach. Primary data were collected from 416 customers of 22 retail banks in HK. The theoretical framework of this study was developed from a literature review, prior studies by Oberseder et al. (2013 and 2014), and CSR initiatives implemented by leading retail banks in HK. Descriptive statistics and statistical tests were used to analyze the data.FindingsThe study found that CSR initiatives positively affect customers’ bank selection. CSR initiatives related to the customer and environment domains are likely to have a greater impact on customers than those related to the society domain and are not likely to significantly impact customers’ bank selection.Originality/valueThis study contributes to the CSR literature by offering enhanced insight into the dynamics of CSR and its effects on customer bank selection. Furthermore, this study tests consumers’ perceptions of CSR initiatives in each CSR domain in the banking sector in Hong Kong – a novel approach that has not been previously explored in existing studies. These findings can help banks review the effectiveness of their CSR initiatives and make informed decisions on which initiatives should pursue improved CSR performance and efficient resource allocation.

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“…Previous studies have found that customers may be skeptical of firm’s motives when implementing CSR initiatives (Chen and Latif, 2023). Kim et al.…”

Section: Discussion Contributions To Literature Managerial and Practi...mentioning

confidence: 99%

Corporate social responsibility initiatives of banks and customers’ selection of banks in Hong Kong

Ha,

Wong,

Loh

2024

JABES

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“…In Chinese state-controlled listed firms, other large non-state-related shareholders are likely to prefer the firm to pursue more tax avoidance, but may not be powerful enough to prevent the largest shareholder from abstaining from tax avoidance. The Chinese government, the context in our study, still controls significant portions of strategic resources and retains considerable power to approve projects and allocate resources (Bu & Roy, 2015; Guo, Sarkar, Zhu, & Wang, 2020; Ma & Yasir, 2023). Consequently, non-state MLS may collude with state owners for both opportunistic and fear-motivated reasons.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…Therefore, we expect the effect of the ownership stake of the largest shareholder on tax avoidance to be more pronounced for local state-controlled firms. Similar to the development of H2, considering the power of the state, other non-state MLS in local SOEs may also decide to collude with the controlling shareholder for opportunistic (e.g., Cheng et al, 2013; Redding, 1995) and fear-motivated reasons (Bu & Roy, 2015; Guo et al, 2020; Ma & Yasir, 2023). As other non-state large shareholders control a larger fraction of voting rights, it is more likely difficult for the dominant owner to ignore them and easier to negotiate side benefits in exchange for their support.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Multiple Large Shareholders, Identity, and Corporate Tax Avoidance

Huyghebaert,

Kang,

Wang

et al. 2024

Manag. Organ. Rev.

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In recent years, the variation in firms' tax-avoidance behavior has attracted a lot of attention, both theoretically and empirically. This study investigates the governance role of multiple large shareholders in firms' tax-avoidance behavior, using a sample of Chinese state-controlled listed firms over the period 2004–2016. We find that the ownership stake of a firm's largest shareholder is negatively associated with tax avoidance among state-controlled firms. Second, other large non-state shareholders negatively affect tax avoidance of state-controlled firms. The former effect is particularly strong when the local government is the controlling shareholder. Finally, differences in institutional quality influence the largest shareholder's tendency to engage in tax avoidance in state-controlled firms. For state-controlled firms, a better institutional environment elicits more tax avoidance and thus curtails minority-investor expropriation.

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“…"Numerous empirical studies have explored the relationship between CSR and financial performance. A comprehensive metaanalysis by Smith et al (2017) indicates a positive association between CSR initiatives and firm profitability, highlighting the potential financial benefits for companies engaged in socially responsible practices. In the unique context of Mumbai, a financial hub characterized by diverse industries, understanding how CSR influences firm performance becomes imperative.…”

Section: Literature Reviewmentioning

confidence: 99%

Unveiling the Financial Nexus: Exploring the Impact of CSR on Firm Performance in Mumbai-based Companies

Dr. M.S. Senam Raju

2024

jier

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“This research investigates the symbiotic relationship between Corporate Social Responsibility (CSR) practices and the financial performance of firms, focusing on a sample of 77 companies located in Mumbai, India. Employing statistical tools such as Smart PLS and SPSS, the study aims to unravel the intricate dynamics that link CSR initiatives to financial outcomes within the unique business landscape of Mumbai. Through a meticulous selection process, this research identifies and analyzes CSR practices across a diverse array of sectors in Mumbai, offering a nuanced understanding of how these initiatives translate into tangible financial benefits. The study employs Smart PLS and SPSS for a rigorous quantitative analysis, enabling a robust examination of the correlations between specific CSR activities and key financial performance indicators. By pinpointing the impact of CSR on profitability, shareholder value, and other financial metrics, this research provides actionable insights for firms seeking to align social responsibility with financial success. The Mumbai-centric focus offers a localized perspective on CSR, considering the socio-economic context of the region and its implications for corporate sustainability. The integration of Smart PLS and SPSS ensures a methodologically sound approach, enhancing the reliability and validity of the findings. The outcomes of this research contribute to the broader CSR literature while offering practical implications for businesses, policymakers, and investors in Mumbai and beyond. As the importance of CSR continues to grow, understanding its specific impact on financial performance becomes crucial for companies striving to thrive in a socially conscious business environment.”

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Carrot or Stick? CSR and Firm Financial Performance

Cited by 10 publications

References 54 publications

Corporate social responsibility initiatives of banks and customers’ selection of banks in Hong Kong

Corporate social responsibility initiatives of banks and customers’ selection of banks in Hong Kong

Multiple Large Shareholders, Identity, and Corporate Tax Avoidance

Unveiling the Financial Nexus: Exploring the Impact of CSR on Firm Performance in Mumbai-based Companies

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