Do peer firms affect corporate social performance?

Tang, Pengcheng; Fu, Shuke; Yang, Shuwang

doi:10.1016/j.jclepro.2019.118080

Cited by 57 publications

(55 citation statements)

References 62 publications

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“…Ding et al, 2016; Zhang et al, 2019), this study still provides unique contributions to the literature by revisiting the CSP-CFP relation from two combined points of view—institutional theory and strategic management perspective—and showing that the extent of tensions between conformity and differentiation varies by industry and year and such factors might have resulted in inconsistencies in the previous findings. Also, despite the previous finding that firms tend to mimic the average level of CSP to cope with uncertainty (Tang et al, 2019), we suggest that financial performance is not the highest when CSP conforms to the average level, but when CSP is slightly higher than the average level.…”

Section: Discussioncontrasting

confidence: 99%

A comparative approach to corporate social performance and corporate financial performance: Moderating effects of conformity tendency in the industry

Jeong

2021

Journal of General Management

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This article attempts to revisit the corporate social performance (CSP)-corporate financial performance (CFP) relationship using a comparative approach. Drawing insights from institutional theory and a strategic management perspective, we take into account tensions between conformity and differentiation by industry and year. Using a sample of 1001 firms and 6006 observations from 1993 to 2015, we test and find data in support of the argument that a firm can expect the highest financial performance (CFP) when its social performance (CSP) is slightly higher than the industry average. We also show that a tendency toward low conformity in an industry has a negative impact on this relationship by weakening conformity pressure. Specifically, a firm belonging to an industry with low conformity tendency has more latitude to deviate its social performance without significantly affecting its financial performance. In sum, we show the importance of using comparative approaches in the CSP-CFP literature.

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Section: Discussioncontrasting

confidence: 99%

A comparative approach to corporate social performance and corporate financial performance: Moderating effects of conformity tendency in the industry

Jeong

2021

Journal of General Management

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“…Under these 5 categories, there are 13 subcategories and 37 indicators. Hexun’s evaluation system is one of the main tools used to measure Chinese listed companies’ social responsibility performance and this proxy for CSR is widely used in the prior literature (Li and Foo, 2015; Xiong et al , 2016; Tang et al , 2018, 2019; Zhao and Xiao, 2019; Zhong et al , 2019; An, 2020; Shou et al , 2020; Wang et al , 2020; Zhang et al , 2020). In an additional test, we use the CSR score of each of the five categories (namely, the responsibility to shareholders; to employees; to suppliers, customers and consumer rights; to the environment and to society), as well as corporate donation (from the CSMAR database) and CSR report quality data (from the RKS database) to further examine whether the inhibitory effect of EPU on CSR holds true for various dimensions of generalized CSR.…”

Section: Methodsmentioning

confidence: 99%

Economic policy uncertainty and corporate social responsibility performance: evidence from China

Zhao

Xiao

Zhang

2021

SAMPJ

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Purpose The purpose of this paper is to show how the external issue of economic policy uncertainty (EPU) affects enterprises’ corporate social responsibility (CSR). Design/methodology/approach This study investigates the relationship between EPU and CSR based on the Chinese capital market from 2010 to 2018. Following the most recent studies focused on economic policy uncertainty, this paper uses the news-based method proposed by Baker et al. (2016) to measure EPU and explore the effect of EPU on CSR, as well as the mediating role of state ownership in such a relationship. Findings Empirical results show that increasing EPU will restrain enterprises’ social responsibility behaviour and the inhibitory effect is more obvious for state-owned enterprises. Further analyses reveal that the inhibitory effect of EPU on CSR is stronger for enterprises that face severe financial constraints and is significant for various components of CSR, and trade policy uncertainty could also curb enterprises’ social responsibility behaviour. Practical implications As a stable economic environment is important for enterprises’ CSR engagement, the present study’s conclusions can help policymakers better understand the implications of policy stability for enterprises’ financial and non-financial decisions and especially their CSR decisions. Social implications With the increasing attention paid to the CSR of enterprises, this study provides evidence that enterprises should develop appropriate CSR strategies according to the economic policy environment and enhance their capacity to withstand the risks generated by EPU. Originality/value To the best of the author’s knowledge, this study is the first to analyse the relationship between EPU and CSR. The results contribute to a better understanding of what issues influence enterprises’ CSR engagement, highlighting the importance of a stable economic policy environment and of enterprises’ ability to withstand risks.

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“…Companies often look to their peers when preparing annual report disclosures, resulting in the potential for mimicry, particularly for organisations newer to a particular type of reporting, or smaller organisations attempting to save time and expense by following the disclosures of their larger peers (Tang et al 2019 ). There may also be peer pressure within the board itself (possibly from NEDs with other board positions) and CEO peer pressure to disclose certain types of corporate information.…”

Section: Determinants Of Corporate Governance Reportingmentioning

confidence: 99%

“…Country-specific legislation and cultural norms drive much of the disclosure (La Porta et al 2000 ) but other external factors such as media interest and stakeholder activism also play a part (Uysal and Tsetsura 2015 ). Within organisations, financial performance (weak or strong) may result in a desire to provide more information regarding an organisation’s corporate governance (Grove et al 2011 ) as can pressure to conform to industry norms, demonstrate industry leadership to peers or mimic others (Tang et al 2019 ). Firm-specific governance scandals are also very likely to result in changes to the nature of information provided by a firm (Christensen 2016 ).…”

Section: Introductionmentioning

confidence: 99%

Determinants, mechanisms and consequences of corporate governance reporting: a research framework

Villiers

Dimes

2020

J Manag Gov

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Corporate governance disclosures form a key part of a company’s non-financial reporting. Several studies consider the determinants of corporate governance reporting, including external factors such as country-specific legislation and scandals, and internal factors such as financial performance, size and culture. Others consider the consequences of corporate governance reporting, using simple proxies for corporate governance mechanisms such as board composition characteristics to analyse the impact on financial reporting quality and company valuation. Yet the determinants and consequences of corporate governance reporting may be interlinked, and many quantitative studies fail to consider these links and their multiple effects adequately. Poor financial performance, for example, can be both a determinant and a consequence of the underlying governance mechanisms that corporate governance reporting aims to capture. The framework provided in this paper considers both the determinants and consequences of corporate governance and likely links between them, and also considers internal corporate governance mechanisms and the measures that are used as their proxies. In combining these three aspects of corporate governance and showing potential links, the framework offers insights into future research opportunities. The framework can be adapted to any country or organisational setting and also offers the opportunity to consider theories other than agency theory when studying corporate governance disclosures.

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Do peer firms affect corporate social performance?

Cited by 57 publications

References 62 publications

A comparative approach to corporate social performance and corporate financial performance: Moderating effects of conformity tendency in the industry

A comparative approach to corporate social performance and corporate financial performance: Moderating effects of conformity tendency in the industry

Economic policy uncertainty and corporate social responsibility performance: evidence from China

Determinants, mechanisms and consequences of corporate governance reporting: a research framework

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