Does corporate social responsibility help the survivorship of SMEs and large firms?

Gangi, Francesco; Meles, Antonio; Monferrà, Stefano; Mustilli, Mario

doi:10.1016/j.gfj.2018.01.006

Cited by 66 publications

(48 citation statements)

References 99 publications

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“…The first analysis regards the evaluation of the relationship between LR and Z ‐Score. According to prior studies, the existence of a sustainability rating impacts positively on Z ‐Score (Gangi, Meles, Monferrà, & Mustilli, ; Shahab et al, ). According to this evidence, our first proposition consists in:HP1: LR impacts positively on Z‐Score.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Does it pay to be an honest entrepreneur? Addressing the relationship between sustainable development and bankruptcy risk

Pizzi

Caputo

Venturelli

2020

Corp Soc Responsibility Env

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Firms' financial stability represents one of the most important aspects for entrepreneurs. In recent years, the European Commission have started to provide new recommendations for the Member States in order to sustain the "honest entrepreneurs" in their activities through new specific regulations on firms' insolvency. Furthermore, the Member States have favored these processes through the introduction in their legal systems of new tools to sustain the voluntary adoption of more ethical business models.A typical example is represented by the Italian context where the regulator introduced a legality rating (LR) to reward entrepreneurs that voluntarily act ethically. In order to evaluate the effects connected to the LR voluntary adoption, we have analysed the relationship between its adoption and firms' Z-Score through a panel data analysis on 296 firms during the period between 2012 and 2017. Our findings suggest that LR adopters have been characterized by a lower degree of bankruptcy risk.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Does it pay to be an honest entrepreneur? Addressing the relationship between sustainable development and bankruptcy risk

Pizzi

Caputo

Venturelli

2020

Corp Soc Responsibility Env

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“…The prior studies empirically demonstrate how CG can be considered the missing link between CSR engagement and firm performance [36,126]. Overcoming the agency theory, CG serves not only the interests of the ownership but also those of a wider range of constituents that includes employees, customers, and community members [127].…”

Section: The Link Between Cg As a Csr Pillar And Icmentioning

confidence: 99%

Do Corporate Social Responsibility and Corporate Governance Influence Intellectual Capital Efficiency?

et al. 2019

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Using a large sample of public firms in 51 countries during the period from 2010 to 2015 and a two-stage least squares (2SLS) regression with an instrumental variable (IV), this study investigates how corporate social responsibility (CSR) and corporate governance (CG) mechanisms interact to influence a firm's intellectual capital (IC) efficiency. The empirical results reveal that CSR engagement and CG structures influence the firm efficiency in managing IC. This study contributes to managerial practice by demonstrating the causal effect of CSR on value-added intellectual capital (VAIC) measures and the positive impact of CG on both CSR engagement and the efficiency with which firms manage their IC. Furthermore, the current study provides an additional understanding of the relationship among CSR engagement, CG practices, and the determining factors of IC efficiency within a comprehensive framework.Thirdly, by capturing the points of convergence stemming from a stakeholder approach to CSR engagement, CG mechanisms, and IC development, the current paper aims to respond to Dumay's [25] call for a shift of the research focus on IC development from an accounting to a management perspective. Indeed, for Dumay, the CSR engagement represents an important opportunity to expand the research agenda on the management of IC, instead of concentrating on synergies among IC reporting and CSR disclosure.Furthermore, relative to prior literature, the current study aims to advance the methodological design for empirical evidence on the link between CSR, CG, and IC. In particular, we collected longitudinal panel data on a large sample of international public firms for which we have information for the 2010-2015 period. Additionally, our estimates employ the instrumental variable (IV) approach for the treatment of reverse causality. Finally, the econometric models of this paper adopt data on CSR engagement drawing from the Asset4 dataset provided by Reuters. As noted in the previous studies (e.g., Reference [38]), Asset4 generates transparent, auditable, and comparable information for the evaluation of corporate social performance.With the awareness that measuring IC performance is still an open question [18], we estimate the financial contribution of IC performance through value-added intellectual capital (VAIC) by Pulic [39], a model that has been widely used as the primary measure of IC (e.g., Reference [31,[40][41][42]). Consistent with Iazzolino and Laise [43] and relative to the indicators that measure value creation from shareholders' perspective, VAIC measures value creation from the stakeholder perspective and clearly accounts for IC.Therefore, to achieve the objectives of the current study, the remainder of this paper is organized as follows. Section 2 presents the conceptual framework and the hypotheses. Section 3 explains the design of the empirical study. Section 4 summarizes the results. Section 5 provides the theoretical conclusions and managerial implications Finally, Section 6 includes the study's limitations and sugg...

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“…Finally, according to Renneboog et al (2008), a broader view of CSR includes the best practices of corporate governance. Prior literature adopting this perspective identifies corporate governance as a pillar of CSR (Elkington, 2006;Gangi, Meles, Monferrà & Mustilli, 2018;Huse, 2005;Hancock, 2005;Jamali & Sidani, 2008). From the perspective of the conflict resolution thesis (Baron, 2009;Calton & Payne, 2003;Jo, Song & Tsang, 2016), CSR enhances financial performance by mitigating the costs of agency.…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

Corporate Social Responsibility and Banks’ Financial Performance

Gangi¹,

Mustilli²,

Varrone³

et al. 2018

IBR

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This study analyzes whether and how corporate social responsibility (CSR) affects the financial performance of the European banking industry. According to agency theory, CSR engagement should be negatively related to financial performance. By contrast, from the stakeholder perspective and according to the resource-based view, CSR should positively impact banks' financial performance. Over a period of six years (2009)(2010)(2011)(2012)(2013)(2014)(2015) following the explosion of the sub-prime crisis, the econometric estimates of the current study confirm a positive effect of CSR engagement on banks' financial performance. Net interest income and profitability increase with the increase in social performance. At the same time, CSR is negatively related to non-performing loans. Therefore, in contrast to the trade-off model, our results support a win-win vision of the relationship between the social and financial performance of banks.

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Does corporate social responsibility help the survivorship of SMEs and large firms?

Cited by 66 publications

References 99 publications

Does it pay to be an honest entrepreneur? Addressing the relationship between sustainable development and bankruptcy risk

Does it pay to be an honest entrepreneur? Addressing the relationship between sustainable development and bankruptcy risk

Do Corporate Social Responsibility and Corporate Governance Influence Intellectual Capital Efficiency?

Corporate Social Responsibility and Banks’ Financial Performance

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