Corporate Social Responsibility Disclosure and the Value of Cash Holdings

Lu, Louise Yi; Shailer, Greg; Yu, Yangxin

doi:10.1080/09638180.2016.1187074

Cited by 84 publications

(66 citation statements)

References 87 publications

(145 reference statements)

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“…Companies can therefore lose their license to operate if they break societal norms and expectations. Accordingly, legitimacy theory predicts that companies adopt environmental reporting to legitimize their operations when societal norms and expectations of their actions change (Deegan, 2007;Lu et al, 2017). The GRI describes sustainability reporting as the practice of measuring economic, social, and environmental performance for internal and external stakeholders (Aras & Crowther, 2008;Comyns, 2016;GRI, 2013;Helfaya & Kotb, 2016).…”

Section: Gri Guidelinesmentioning

confidence: 99%

An Empirical Investigation of U.K. Environmental Targets Disclosure: The Role of Environmental Governance and Performance

Moussa

Kotb

Helfaya

2021

European Accounting Review

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Although an increasing number of companies have publicly declared environmental targets (ETs), scant research has been conducted in this area. This study, therefore, investigates the extent of corporate environmental targets disclosure (ETD) and empirically examines whether environmental governance and performance influence the ETD of companies in the U.K.during the 2005-2013 period. We find that firms show a large degree of variability and inconsistency in their reporting of ETs. The results indicate that U.K. firms, particularly those with high environmental sensitivity, tend to disclose symbolic soft or semi-hard ETs to manage stakeholder perceptions and legitimize their existence. Moreover, Global Reporting Initiative (GRI) guidelines, sustainability committees, and sustainability assurance show positive relationships with ETD. We also find that U.K. firms that perform well environmentally are likely to set and disclose hard ETs. These results support stakeholder, legitimacy, and impression management theories. We suggest that there is a need for regulations that will not only enhance the usefulness of ETD but also encourage companies to take serious proactive action to reduce negative environmental impacts, possibly creating 'win-win' solutions. Our findings have important implications for policy-makers and various stakeholder groups.

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Section: Gri Guidelinesmentioning

confidence: 99%

An Empirical Investigation of U.K. Environmental Targets Disclosure: The Role of Environmental Governance and Performance

Moussa

Kotb

Helfaya

2021

European Accounting Review

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“…This result supports the conclusion of Arouri and Pijourlet ( 2017 ) firms with a high corporate social responsibility rating associated with higher value to cash held from investors. Another study by Lu et al ( 2017 ) dedicated to examining the CSR report relationship with cash holding, suggested that information in CSR reports can facilitate monitoring and thus induce more efficient use of cash holdings. Hence, the issuance of a standalone CSR report increases the marginal value of cash holdings.…”

Section: Abstract Analysismentioning

confidence: 99%

A bibliometric analysis of cash holdings literature: current status, development, and agenda for future research

et al. 2021

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Despite the growing interest in exploring the cash holding aspects among scholars, systematic reviews and comprehensive evaluation in this area has been limited. Also, there is only a fragmented understanding about how the cash holdings concept is formed among researchers and experts. We fill this gap in the literature by identifying and evaluating the research development of cash holdings topic. Using 874 articles from the Scopus database that were published between 1947 and early 2020, bibliometric and content analyses were employed to assess the patterns of global cash holdings research. We find that previous studies have substantially enriched our knowledge of the antecedents and consequences of cash holdings. Yet, there are still several opportunities to make significant contributions in this area. The contribution of this research is to provide a comprehensive evaluation of the development of cash holdings research (using a sizeable archival database). It identifies the current joint development and potential opportunities for future work directions on cash holdings association with payout policy, corporate social responsibility, and corporate governance. Our results are likely to be of interest to academics, practitioners, and educators in related business and finance fields.

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“…Presently, there is much controversy in the literature assessing whether CSR influences firm performance and to what extent (Cook, Romi, Sanchez, & Sanchez, 2019; Gregory, Whittaker, & Yan, 2016; Lu, Shailer, & Yu, 2017; Surroca & Tribo, 2008). In contrast to the literature on the association between CSR and performance, research on the association between CSR and risk is more settled and suggests that CSR decreases firms’ risk (Herremans, Akathaporn, & Morris, 1993).…”

Section: Prior Literature and Hypothesis Developmentmentioning

confidence: 99%

Good for managers, bad for society? Causal evidence on the association between risk‐taking incentives and corporate social responsibility

Mayberry

2020

Business Fin & Account

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Using FAS 123R as an exogenous shock to stock options, I provide evidence that equity‐based risk‐taking incentives discourage corporate social responsibility (CSR). This finding suggests that compensation incentives can motivate managers not to pursue CSR strategies because CSR reduces firms’ risk and provides insurance‐like benefits. Firms with a greater demand for CSR's risk reduction are more sensitive to changes in risk‐taking incentives. I triangulate my results by confirming that CSR weaknesses are positively related to subsequent stock return volatility. Overall, using a robust empirical design, I find that risk‐taking incentives are a determinant of firms’ CSR.

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Corporate Social Responsibility Disclosure and the Value of Cash Holdings

Cited by 84 publications

References 87 publications

An Empirical Investigation of U.K. Environmental Targets Disclosure: The Role of Environmental Governance and Performance

An Empirical Investigation of U.K. Environmental Targets Disclosure: The Role of Environmental Governance and Performance

A bibliometric analysis of cash holdings literature: current status, development, and agenda for future research

Good for managers, bad for society? Causal evidence on the association between risk‐taking incentives and corporate social responsibility

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