Corporate social responsibility and firm value: Guiding through economic policy uncertainty

Rjiba, Hatem; Jahmane, Abderrahman; Abid, Ilyes

doi:10.1016/j.frl.2020.101553

Cited by 127 publications

(90 citation statements)

References 12 publications

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“…A previous study by Bernal-Conesa, de Nieves Nieto, and Briones-Peñalver (2017) identifies CSR's adoption as a strategy for improving the performance, competitiveness, and sustainability of tech companies operating in Spain. While investigating the impact of economic policy uncertainty on establishing a nexus between CSR and corporate financial performance, Rjiba et al (2020) found that social capital investments through CSR activities limit the negative effect of economic policy uncertainty on financial performance. Presently in the U.S, a growing number of firms in the technology industry believe they have the duty to contribute to economic growth in a sustainable manner, evolve operational processes and practices that enhance their competitive advantage, and ensure the protection of the environment while promoting social responsibility.…”

Section: Introductionmentioning

confidence: 99%

Corporate social responsibility and financial performance: Evidence from U.S tech firms

Okafor

Adeleye

Adusei

2021

Journal of Cleaner Production

249

102

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This study provides quantitative evidence on the positive effect of spending on socially responsible causes on the long-term growth of U.S technology companies. Maximizing shareholder wealth remains the overarching principle driving organizational strategies, but this has always conflicted with other stakeholders' interests. Because of these conflicting priorities, entrenching the principles of social responsibility has become imperative. We leverage content analysis, fixed-effects and pooled regression models to examine the effect of engaging in CSR on tech companies' corporate financial performance in the U.S. The empirical study consists of panel data of the top 100 tech companies listed on the S&P 500 for the period 2017 and 2019. We examine the link between corporate financial performance and CSR proxies. The main results indicate that tech companies that spend more on CSR experience a corresponding increase in revenue and profitability. Contrary to previous studies, we observe insignificant evidence to support a relationship between CSR and Tobin's Q.

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Section: Introductionmentioning

confidence: 99%

Corporate social responsibility and financial performance: Evidence from U.S tech firms

Okafor

Adeleye

Adusei

2021

Journal of Cleaner Production

249

102

View full text Add to dashboard Cite

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“…Companies should comprehend that CSR activities are not a burden but a way of investment because the expenses paid in the short term provide higher profits and a better reputation in the long term [ 11 ]. Rjiba et al [ 12 ] claimed that CSR investments counterbalance the adverse effect of economic policy uncertainty on enterprise performance. Bhattacharyya and Rahman [ 13 ] proved a positive connection amid mandatory CSR spending and Indian firm performance.…”

Section: Introductionmentioning

confidence: 99%

Does Water, Waste, and Energy Consumption Influence Firm Performance? Panel Data Evidence from S&P 500 Information Technology Sector

Simionescu

Gherghina

Sheikha

et al. 2020

IJERPH

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This paper aimed to investigate the impact of water, waste, and energy consumption on firm performance for a sample of enterprises that belong to the S&P 500 Information Technology sector over the period of 2009–2020. The quantitative framework covered both accounting (e.g., return on assets—ROA; return on common equity—ROE; return on capital—ROC; return on invested capital—ROIC) and market-based measures of performance (e.g., price-to-book value—PB), alongside firm and corporate governance specific variables. By estimating multivariate panel data regression models, the empirical results provided support for a negative impact of total water use on PB but a positive effect on ROA. With reference to the total waste, the econometric outcomes revealed a negative influence on the entire selected performance measures, whereas total energy consumption did not reveal any statistically significant influence.

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“…Among these, previous studies within Corporate Social Responsibility (CSR) literature have used Thomson Reuters Asset4 ESG data to proxy for the level of CSR (i.e. Qiu et al, 2016;Rjiba et al, 2020). Similarly, within the literature on corporate culture, several authors provide proxies to measure an organisational culture that is unobservable and hence difficult to measure (i.e.…”

Section: Measuring Integrated Thinking and Reportingmentioning

confidence: 99%

“…previous studies within corporate social responsibility (CSR) literature have used Thomson Reuters Asset4 ESG data to proxy for the level of CSR (Qiu et al, 2016;Rjiba et al, 2020).…”

Section: Integrated Thinkingmentioning

confidence: 99%

Integrated thinking: measuring the unobservable

Malafronte

Pereira

2020

MEDAR

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Purpose The purpose of this paper is to add to the growing literature on integrated thinking and reporting by exploring the challenges of measuring integrated thinking in academic research. It provides a review of previous studies, presents a proxy measure to quantify the level of integrated thinking and investigates companies’ approach towards integrated thinking in practice. Design/methodology/approach Firstly, this study proposes a measure to quantify the level of integrating thinking. Secondly, this study implements factor analysis to identify a parsimonious representation and explore the relevance of each variable in explaining the proposed measure of integrated thinking. Thirdly, this study implements cluster analysis to determine the natural grouping of firms with a certain level of integrated thinking and to identify the existence of distinctive companies’ approaches. Findings The findings suggest that the proposed measure of integrated thinking could be reduced into two main principal components that explain the current practices and the future direction. Firms’ integrated thinking practices can be clustered into groups denoting various practices among firms, and exhibit routine over time. Across clusters, firms reveal significantly different characteristics highlighting the existence of systematic demographic differences. Research limitations/implications This research does not endeavour to overcome all the measurement issues related to integrated thinking. It attempts to measure the level and companies’ approaches towards integrated thinking that can inspire further empirical studies in this field. Originality/value This study answers the call for an empirical investigation of the internal aspects of integration. This paper provides academics, companies, and policymakers with a proxy measure of integrated thinking that can inspire empirical studies and advance the understanding of integrated thinking practices.

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Corporate social responsibility and firm value: Guiding through economic policy uncertainty

Cited by 127 publications

References 12 publications

Corporate social responsibility and financial performance: Evidence from U.S tech firms

Corporate social responsibility and financial performance: Evidence from U.S tech firms

Does Water, Waste, and Energy Consumption Influence Firm Performance? Panel Data Evidence from S&P 500 Information Technology Sector

Integrated thinking: measuring the unobservable

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