CSR Performance, Financial Reporting, and Investors’ Perception on Financial Reporting

Timbate, Lukas; Park, Cheong Kyu

doi:10.3390/su10020522

Cited by 58 publications

(47 citation statements)

References 45 publications

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“…They used institutional ownership, analyst following, board independence, and audit committee independence and found that the coefficients of the intersection variables between the first few years dummy and the governance variables were negative and statistically significant. As more earnings manipulation means less CSR investments [32][33][34], we expected a similar moderating effect of governance on the relationship between tenure and CSR. Unlike Ali and Zhang [8], who did not test the governance effect for the last year, we predicted the moderating effect of governance also on the horizon problem.…”

Section: Hypothesismentioning

confidence: 77%

“…Ali and Zhang [8] tested the two periods and discovered that in both periods CEOs increase discretionary accruals and reduce discretionary expenses. As an increase in earnings management decreases CSR [32][33][34], and CSR investment can be one type of discretionary expenditure CEOs want to minimize at the time of short-termism, we expected that the effect of these periods on CSR would be similar to that of Ali and Zhang [8]. Because a manager who wants to maximize his/her short-term profit may not have room for allowing expenditures in a long-term project such as CSR, CSR investment will be decreased.…”

Section: Discussionmentioning

confidence: 99%

“…According to Kuang et al [31], because CEOs just hired outside the company have more incentive to prove their abilities while having less expectation to survive, they increase earnings in the early years of their tenure until they attain enough of a reputation to quit their short-term perspective. Because earnings manipulation is negatively related to corporate social performance [32][33][34], we may expect that the CSR level will be low at the early stage of CEO tenure. If CSR is a type of investment [25], managers who want to maximize their short-term profits may be reluctant to spend more CSR costs at an early stage.…”

Section: Hypothesismentioning

confidence: 99%

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CEO Tenure, Corporate Social Performance, and Corporate Governance: A Korean Study

2019

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The purpose of this study was to examine the association between Chief Executive Officer (CEO) tenure and corporate social performance with the moderating effect of governance. We investigated whether new CEOs and CEOs in their last year of service were more focused on short-termism than CEOs of other periods. Specifically, we tested whether these CEOs reduced social performance that demands immediate expenditure and expect payoffs in the long run. We also tested whether good governance can mitigate such behaviors, because not all CEOs of the same tenure will act the same, depending on the monitoring environments surrounding them. We employed ordinary least squares (OLS) method and the moderator models using data from the Korean listed companies from 2012 to 2016. Test results showed that only the CEOs of their last year reduced social performance. However, when we considered corporate governance, we found that both groups of CEOs reduced social performance, and that good governance mitigated the adverse effects of the two periods on Corporate Social Responsibility (CSR). Specifically, we tested board independence, board frequency, CEO duality, and board diversity, and found that, for all but board independence, the negative effects of the two periods on social performance were decreased.

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Section: Hypothesismentioning

confidence: 77%

Section: Discussionmentioning

confidence: 99%

Section: Hypothesismentioning

confidence: 99%

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CEO Tenure, Corporate Social Performance, and Corporate Governance: A Korean Study

2019

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“…In order to assess the AMCs' performance we used several indicators already adopted in the literature: (a) two accounting‐based measurement return on asset (ROA) ratio and return on equity (ROE) ratio as a profitability proxy of an AMC (Tsoutsoura, ) and (b) a financial‐based measurement using asset turnover ratio (Timbate & Kyu Park, ).…”

Section: Methodsmentioning

confidence: 99%

CSR perception and financial performance: Evidences from Italian and UK asset management companies

Sciarelli

Tani

Landi

et al. 2019

Corp Soc Responsibility Env

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This work fits into a stream of research dealing with the role of the Internet and social networks as effective disclosure tools. We argue that the asset management company's (AMC) self‐presentation, its product disclosure, and how it communicates in the social media can be positively associated to its performance. In this paper we have studied these relationships on 21 Italian and UK AMCs in the EUROSIF Panel by adopting an experimental study asking business ethics course university students to evaluate the AMCs' ethical commitment. Our research shows that a high corporate social performance (CSP) disclosure through Web and social media is positively associated to AMCs' economic performance. Even a high perceived coherency between AMCs' self‐presentation and ethical financial product communication can enhance AMCs' financial success. In reverse, a high perceived coherency between financial products and corporate social responsibility communication through Web and social media networks does not seem to improve AMCs' economic performance.

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“…Prior studies have used two accrual models to measure earnings quality, including discretionary accruals model [107] and non-discretionary accruals [108]. Additionally, a significant number of studies [34,50,[109][110][111] have found a negative relationship between various BOD characteristics and abnormal accruals. Similarly, by using the absolute value of discretionary accruals, [112] examined the relationship between IC and EM in Australian firms; their results suggested that a low level of EM is associated with the presence of non-executive directors on the BOD.…”

Section: Dependent Variablesmentioning

confidence: 99%

Financially Qualified Members in an Upper Echelon and Their Relationship with Corporate Sustainability: Evidence from an Emerging Economy

2018

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Non-observable board diversity is an important organizational strategy for improving the long-term growth and survivability of firms. The involvement of corporate sustainability (CS) in top management teams has led to effective boards. By using agency theory, we stress how financially qualified directors (FQD) in audit committees (ACs) may positively or negatively affect the practice of earnings management (EM). We also use various theories to explain how a powerful chief executive officer (CEO) complicates the effectiveness of AC and reduces their ability to detect EM practices. Using a sample of 1020 firm-year observations representing 204 non-financial listed Pakistani firms during 2013-2017, we find that the presence of FQD on the AC is associated with lower levels of EM. Our analysis shows that this effect is driven by the level of FQDs' accounting knowledge.

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CSR Performance, Financial Reporting, and Investors’ Perception on Financial Reporting

Cited by 58 publications

References 45 publications

CEO Tenure, Corporate Social Performance, and Corporate Governance: A Korean Study

CEO Tenure, Corporate Social Performance, and Corporate Governance: A Korean Study

CSR perception and financial performance: Evidences from Italian and UK asset management companies

Financially Qualified Members in an Upper Echelon and Their Relationship with Corporate Sustainability: Evidence from an Emerging Economy

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