Corporate Social Responsibility and Financial Performance: The impact of the MSCI ESG Ratings on Korean Firms

Kim, Jin-Wook; Chung, Sung-Gon; Park, Cheongkyu

doi:10.5762/kais.2013.14.11.5586

Cited by 33 publications

(22 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…However, the negative correlation between variables becomes statistically insignificant when we measure the Spearman correlations. As reported in previous studies, the relationship between CSR performance and financial performance in these preliminary statistics is not conclusive, and we need to take further statistical assessments to reach a meaningful contribution [27]. The correlations of other variables are signed as expected and consistent with those reported in previous studies.…”

Section: Descriptive Statisticssupporting

confidence: 74%

Does CSR Assurance Affect the Relationship between CSR Performance and Financial Performance?

2019

View full text Add to dashboard Cite

In this study, we investigate the effect of assurance service of corporate social responsibility (CSR) reports on the relationship between CSR performance and firms’ financial performance. Specifically, we question whether firms having their CSR performance assured to benefit from such assurance services. Theory suggests that investors apply a lower discount rate when valuing firms if information from the firms is credible. Using a sample of 5040 large U.S. companies, we find that the CSR performance is positively associated with the firms’ financial performance on average and that there is a significant effect of CSR assurance service on the relationship between CSR performance and firms’ financial performance. This implies that firms having their CSR reports assured by external experts experience much higher financial performance than firms without such assurance service. Our findings are consistent with the prior studies and support our argument with regard to the CSR assurance service. The findings have implications for firms considering CSR assurance and accounting professionals for their opportunities.

show abstract

Section: Descriptive Statisticssupporting

confidence: 74%

Does CSR Assurance Affect the Relationship between CSR Performance and Financial Performance?

2019

View full text Add to dashboard Cite

show abstract

“…Prior studies have examined the association between ESG practices and FP. Most studies focus on a single dimension/subcomponent of ESG (Smith et al, 2007;Ponnu, 2008;Barnett and Salomon, 2012;Kim et al, 2013;Han et al, 2016aHan et al, , 2016b. As discussed above, ESG issues are interconnected; therefore, concentrating on a single dimension could be problematical (Galbreath, 2013).…”

Section: Literature Review and Overview Of Environmental Social And Governance Scoresmentioning

confidence: 99%

ESG impact on performance of US S&P 500-listed firms

2020

View full text Add to dashboard Cite

Purpose This paper aims to investigate whether there are relationships among corporate disclosure of environmental, social and governance (ESG) and firms’ operational (ROA), financial (ROE) and market performance (Tobin’s Q), and if these relationships are positives or negatives or even neutral. Design/methodology/approach The study sample covers US S&P 500-listed companies during the period 2009 to 2018. Panel regression analysis was used to examine the study hypotheses and achieve the study aims. Findings The results showed that ESG disclosure positively affects a firms’ performance measures. However, measuring ESG sub-components separately showed that environmental (EVN) and corporate social responsibility (CSR) disclosure is negatively associated with ROA and ROE. EVN and CSR disclosure is positively related to Tobin’s Q. Further, corporate governance (CG) disclosure is positively related to ROA and Tobin’s Q, and negatively related to ROE. More importantly, ESG, CSR, EVN and CG tend to be higher with firms that have high assets and high financial leverage. Furthermore, the higher level of ESG, EVN, CSR and CG disclosure, the higher the ROA and ROE. Originality/value The study limns a vision of the role of ESG on firm performance. This study tries to determine whether there are relationships among all ESG disclosure and FP, and if they are positive, negative or even neutral.

show abstract

“…In terms of market-based measurements, Tobin's Q and Weighted Average Cost of Capital (WACC) are used in this study. Tobin's Q is the measure of firm value, defined as the ratio of the market value of a firm over the value of firm's physical asset (Kim, Chung, & Park, 2013). It indicates how the market values a company's existing assets.…”

Section: Measurements Of Variablesmentioning

confidence: 99%

The impacts of environmental, social, and governance factors on firm performance

Atan

Alam

Said³

et al. 2018

MEQ

377

137

View full text Add to dashboard Cite

Purpose-The ESG factor, which consists of environmental, social, and governance factors, represents the non-financial performance of a company. United Nations Principles for Responsible Investment (UN-PRI) invites investors to consider ESG issues when evaluating the performance of any company. Moreover, nowadays the contribution of corporations towards sustainable development is a major concern of investors, creditors, government, and other environmental agencies. Therefore, the purpose of this paper is to examine the impact of ESG factors on the performance of Malaysian public limited companies in terms of profitability, firm value, and cost of capital. Design/methodology/approach-A total of 54 companies are selected from Bloomberg's ESG database that has complete ESG and financial data from 2010 to 2013. This study conducted panel data regressions such as the pooled OLS, fixed effect, and random effect. Findings-Based on the regression results, there is no significant relationship between individual and combined factors of ESG and firm profitability (i.e., ROE) as well as firm value (i.e., Tobin's Q). Moreover, individually, none of the factors of ESG is significant with the cost of capital (WACC), but the combined score of ESG positively and significantly influences the cost of capital (WACC) of a company. Practical implications-As this is a new study on Malaysia, the findings of this study will be useful to investors, SRI analysts, policy makers, and other related agencies. Originality/value-To the best of the authors' knowledge, this study is among the first empirical study to examine the impact of ESG factors on the performance of Malaysian public limited companies in terms of profitability, firm value, and cost of capital.

show abstract

Corporate Social Responsibility and Financial Performance: The impact of the MSCI ESG Ratings on Korean Firms

Cited by 33 publications

References 19 publications

Does CSR Assurance Affect the Relationship between CSR Performance and Financial Performance?

Does CSR Assurance Affect the Relationship between CSR Performance and Financial Performance?

ESG impact on performance of US S&P 500-listed firms

The impacts of environmental, social, and governance factors on firm performance

Contact Info

Product

Resources

About