Corporate social responsibility as a common risk factor

Jarjir, Souad Lajili; Nasreddine, Aya; Desban, Marc

doi:10.1016/j.gfj.2020.100577

Cited by 6 publications

(3 citation statements)

References 35 publications

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“…The finding regarding the positive valuation effect of ESG factors is in line with a number of recent studies [3,25,36,37]. This can be understood in the context of the stakeholder theory.…”

Section: Discussionsupporting

confidence: 89%

“…Nonetheless, such a relationship is stronger for companies with higher ESG sustainability disclosure. Jarjir et al [37] challenged the factor models widely used to explain stock returns of the European firms and found a risk premium associated with ESG ratings priced by the market. Recently, Broadstock et al [25] showed that ESG factors mitigate financial risk during financial crisis, and that the role of ESG factors is attenuated in normal times, confirming its incremental importance during crisis.…”

Section: The Impact Of Corporate Sustainability On Firm Value and Financial Performancementioning

confidence: 99%

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Corporate Sustainability and Stock Value in Asian–Pacific Emerging Markets: Synergies or Tradeoffs among ESG Factors?

Budsaratragoon

Jitmaneeroj

2021

Sustainability

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We use structural equation modelling to examine whether multi-dimensional corporate sustainability (CS)—measured by environmental, social and governance (ESG) factors—affects stock value. We find that investors are willing to pay for each dollar of earnings that the highly rated ESG company generates. Moreover, the positive synergistic effect among the ESG factors implies that companies that focus on any single dimension or the equally weighted aggregation of ESG factors understate the value relevance of CS. In other words, successful sustainability practices should comprise all of the dimensions of CS in order to gain benefit from their synergistic effect with stock value. However, the synergistic effect among ESG factors does not imply that the individual components of CS should be weighted equally in sustainability practices. Our findings show that social engagement emerges as the main driver of CS and should be weighted more heavily than the other factors in sustainability practices. Interestingly, when we account for corporate economic performance, we find that investors put more (less) value on CS when corporate economic performance is weak (strong). This implies that economic performance and ESG performance contain similar information, and that their effects on stock value subsume each other.

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Section: Discussionsupporting

confidence: 89%

Section: The Impact Of Corporate Sustainability On Firm Value and Financial Performancementioning

confidence: 99%

Corporate Sustainability and Stock Value in Asian–Pacific Emerging Markets: Synergies or Tradeoffs among ESG Factors?

Budsaratragoon

Jitmaneeroj

2021

Sustainability

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“…CSR activities have many benefits for companies such as strengthening the relationship between employees and the company, increasing employee morale, and making the company more connected to the people who live around the company's offices. (Elgebeily et al, 2021;Jarjir et al, 2020) Before companies implement CSR, companies must have responsibilities to employees and shareholders. Therefore, companies that implement CSR programs usually have completed their responsibilities to employees and shareholders so that they can provide benefits to the community.…”

Section: Introductionmentioning

confidence: 99%

Corporate Social Responsibility, Investment Decisions, and Managerial Ownership on Value of The Company : Evidence from Indonesia

Ardillah¹,

Thenia²

2021

ijtc

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This study aims to prove the influence of corporate social responsibility, investment decisions and managerial ownership on value of the company. Theories used in this research are agency theory and signal theory. This research was done on all manufacturing companies listed on the Indonesia Stock Exchange for the period of 2016-2018. The sampling method used is purposive sampling technique and the data analysis method used is multiple linear regression analysis. The results of this study show that corporate social responsibility and managerial ownership have no influence on value of the company, while investment decisions have a positive influence on value of the company. Few suggestions for the further research are adjust research periods, use other criteria of sample, use other indicators such as funding decisions, company size, other corporate governance indicators, or use other methods to measure value of the company.

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Investor Perspectives: Evaluating the Impact of CSR on Excess Returns in Financial Companies

Sachdeva,

Ramesh

2024

Springer Proceedings in Business and Economics

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Corporate social responsibility as a common risk factor

Cited by 6 publications

References 35 publications

Corporate Sustainability and Stock Value in Asian–Pacific Emerging Markets: Synergies or Tradeoffs among ESG Factors?

Corporate Sustainability and Stock Value in Asian–Pacific Emerging Markets: Synergies or Tradeoffs among ESG Factors?

Corporate Social Responsibility, Investment Decisions, and Managerial Ownership on Value of The Company : Evidence from Indonesia

Investor Perspectives: Evaluating the Impact of CSR on Excess Returns in Financial Companies

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