Corporate social responsibility, family involvement, and stock price crash risk

Yang, Mei; Wang, Yan; Bai, Lu

doi:10.1002/csr.2414

Cited by 8 publications

(3 citation statements)

References 163 publications

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“…Another study using ESG disclosure, Silva (2022) analyzed ESG disclosure with crash risk in global companies from 2007-2019, concluding that ESG disclosure weakens future firm-specific crash risk. The same results were shown by (Bae et al, 2021;Hua Fan, and Michalski, 2020;Yang et al, 2023) which showed that ESG disclosure was able to mitigate the company's future stock price crash risk.…”

Section: Esg Disclosure Business Strategy and Stock Price Crash Risksupporting

confidence: 67%

The Moderating Role of Esg Disclosure on Firm Strategy and Stock Price Crash Risk

Gregorius Jeandry,

Nurdin

2023

JRABA

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This study aims to examine the effect of the company's business strategy on the stock price crash risk and examine the role of ESG disclosure as moderation in the relationship between business strategy and the stock price crash risk. The study population includes all companies listed on the Indonesia Stock Exchange (IDX) for the period 2017–2022. The sampling technique used was saturation sampling, with a total of 609 observations. Data collection techniques use content analysis. The data analysis technique uses ordinary least squares. This study found that firm strategy with the prospector typology affect the stock price crash risk, while the defenders and analyzers typologies have no effect on the stock price crash risk. ESG disclosure can weaken the effect of the business strategies of the prospector, defender, and analyzer typologies on stock price crash risk. Additional analysis found that ESG can reduce the risk of future stock price crashes. The contribution to signal theory is that there is consistently a strategic motivation for management to control good and bad information for the public. Bad information can cause the risk of price crashes to be higher than good information. Through ESG disclosure, it can provide positive signals to the public so that the risk of stock price crashes is low. The practical contribution for investors is as an investment strategy by paying more attention to the tendency of stock price crashes. For the government as a basis for making economic policies to create a well-maintained business climate.

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Section: Esg Disclosure Business Strategy and Stock Price Crash Risksupporting

confidence: 67%

The Moderating Role of Esg Disclosure on Firm Strategy and Stock Price Crash Risk

Gregorius Jeandry,

Nurdin

2023

JRABA

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“…Xu et al ., 2013; He et al ., 2019; Kim et al ., 2019; Yang et al. , 2023a, b). The foundation of literature on stock price crash risk revolves around the concept of managerial behaviour characterised by the hoarding of negative news, driven by factors such as informational opacity and agency conflicts (Jin and Myers, 2006; Hutton et al ., 2009).…”

Section: Resultsmentioning

confidence: 99%

CEO power and stock price crash risk in India: the moderating effect of insider trades

Kalia

2024

AJEB

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PurposeThis study aims to explore the relationship between chief executive officer (CEO) power and stock price crash risk in India. Furthermore, it seeks to analyse how insider trades may moderate the impact of CEO power on stock price crash risk.Design/methodology/approachA study of 236 companies from the S&P BSE 500 Index (2014–2023) have been analysed through pooled ordinary least square (OLS) regression in the baseline analysis. To enhance the results' reliability, robustness checks include alternative methodologies, such as panel data regression with fixed-effects, binary logistic regression and Bayesian regression. Additional control variables and alternative crash risk measure have also been utilised. To address potential endogeneity, instrumental variable techniques such as two-stage least squares (IV-2SLS) and difference-in-difference (DiD) methodologies are utilised.FindingsStakeholder theory is supported by results revealing that CEO power proxies like CEO duality, status and directorship reduce one-year ahead stock price crash risk and vice versa. Insider trades are found to moderate the link between select dimensions of CEO power and stock price crash risk. These findings persist after addressing potential endogeneity concerns, and the results remain consistent across alternative methodologies and variable inclusions.Originality/valueThis study significantly advances research on stock price crash risk, especially in emerging economies like India. The implications of these findings are crucial for investors aiming to mitigate crash risk, for corporations seeking enhanced governance measures and for policymakers considering the economic and welfare consequences associated with this phenomenon.

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“…Referring to existing literature [34], according to the idea of "selecting winners", the government is more willing to select truly excellent enterprises, subsidize projects with high success rates, and minimize market distortion. Additionally, scholars have also pointed out that fulfilling corporate social responsibility is beneficial for improving stakeholder relationships and gaining more trust [35]. However, in reality, enterprises may engage in negative events that violate their original intentions of operation and harm social benefits driven by interests [36].…”

Section: Esg Performance and Government Subsidiesmentioning

confidence: 99%

Can companies get more government subsidies through improving their ESG performance? Empirical evidence from China

Zhang,

Feng

2023

PLoS ONE

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Environmental protection and social obligation fulfillment have become hot subjects as the "dual carbon" approach has been developed and deepened. The ESG system is consistent with China’s current policies, abandoning the traditional business philosophy of economic supremacy in favor of comprehensively measuring corporate social responsibility and sustainable development capability across three dimensions: environmental (E), social (S), and corporate governance (G), which receive widespread attention from all sectors of society. Based on observational data from A-share listed businesses in Shanghai and Shenzhen from 2011 to 2020, this study empirically evaluates the influence and mechanism of ESG on government subsidies. The research results indicate that enterprises can receive more government subsidies by improving ESG performance. Mechanism analysis found that corporate transparency plays a positive mediating role in the process of ESG affecting government subsidies. Further research on political affiliation and property rights has found that companies without political affiliation are more inclined to receive more government subsidies by improving ESG performance, and the impact of political affiliation and ESG performance on government subsidies is mutually complementary. Enterprises with different property rights have different strengths of motivation to increase government subsidies by improving ESG performance. State owned enterprises (excluding central enterprises) are the strongest, followed by non-state-owned enterprises, and central enterprises are the weakest. Therefore, enterprises should be further encouraged to strengthen ESG construction, improve the quality of ESG information disclosure, improve resource allocation efficiency, and promote high-quality development of enterprises.

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Corporate social responsibility, family involvement, and stock price crash risk

Cited by 8 publications

References 163 publications

The Moderating Role of Esg Disclosure on Firm Strategy and Stock Price Crash Risk

The Moderating Role of Esg Disclosure on Firm Strategy and Stock Price Crash Risk

CEO power and stock price crash risk in India: the moderating effect of insider trades

Can companies get more government subsidies through improving their ESG performance? Empirical evidence from China

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