Does Corporate Social Responsibility Impact on Corporate Risk-Taking? Evidence from Emerging Economy

Li, Xiao; Liu, Gang; Fu, Qiang; Rahman, Abdul Aziz Abdul; Meero, Abdelrhman; Sial, Muhammad Safdar

doi:10.3390/su14010531

Cited by 8 publications

(12 citation statements)

References 53 publications

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“…CSR may increase trust and reduce transaction costs by aligning with stakeholder incentives [73]. Empirical results demonstrate a positive relationship between CSR and a firm's credit ratings [49,55,[74][75][76][77]. Other studies have examined the relationship between CSR performance and the cost of debt [60,78,79] and also found a negative relationship [48,74,76,80].…”

Section: Corporate Social Responsibility and Financing Costmentioning

confidence: 96%

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Chinese Merchant Group Culture, Corporate Social Responsibility, and Cost of Debt: Evidence from Private Listed Firms in China

Wang

Humphreys

2022

Sustainability

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Chinese merchant groups are commercial organizations that have developed over thousands of years. Given the importance of private firms to China’s sustainable development, this study investigates the impact of the traditional Chinese concept of merchant groups on corporate social responsibility (CSR) performance and cost of debt, using Chinese private listed firms during 2008–2020. We measure merchant group culture based on the company’s geographic location. Ordinary least squares regression models are used to test the hypotheses. According to the results, the CSR performance of firms from five traditional Chinese merchant groups is better than non-members. A positive relationship exists between the strength of merchant group culture and CSR performance; this relationship is stronger among merchant group companies. The closer the culture to CSR values, the better the CSR performance, which is negatively related to the cost of debt. The findings are in line with the peer effect theory. Therefore, the study provides evidence that it is essential to consider the traditional Chinese merchant group culture for firms’ CSR strategies beyond formal financial and regulatory factors in China. This study is a first step in exploring the impact of merchant group culture in China on CSR performance and the economic application of this relationship.

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Section: Corporate Social Responsibility and Financing Costmentioning

confidence: 96%

“…The literature yields inconsistent results on the relationship between CSR and financial performance [44][45][46]. Investors might accept a higher risk for firms engaging in CSR [47][48][49][50][51]. However, other studies identify a negative relationship between CSR and financial risk [52][53][54].…”

Section: Corporate Social Responsibility and Financing Costmentioning

confidence: 99%

Chinese Merchant Group Culture, Corporate Social Responsibility, and Cost of Debt: Evidence from Private Listed Firms in China

Wang

Humphreys

2022

Sustainability

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“…Bahkan perusahaan besar yang memiliki total aktiva dengan nilai aktiva yang cukup besar dapat menarik investor untuk menanamkan modalnya pada perusahaan tersebut. Dalam hal ukuran perusahaan dilihat dari total assets yang dimiliki oleh perusahaan, yang dapat dipergunakan untuk kegiatan operasi perusahaan (Li et al, 2022). Secara umum, leverage adalah penggunaan dana pinjaman untuk meningkatkan potensi hasil (return) darai sebuah investasi.…”

Section: Pendahuluanunclassified

Pengaruh CSR, Growth, Profitability, Firm Size, Financial Leverage Terhadap Risiko Operasional

Hendi,

Widya Wulandari. R

2023

JEK

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Tujuan penelitian ini ialah menganalisis pengaruh CSR, Growth, Profitability, Firm Size, Financial Leverage terhadap Risiko Operasional. Metode penelitian ini ialah kuantitatif. Populasi penelitian tahun 2017-2021 diambil dari laporan keuangan perusahaan yang diperdagangkan di Bursa Efek Indonesia (BEI). Purposive sampling dipergunakan untuk mengumpulkan data untuk penyelidikan ini. Sampel penelitian ini yaitu laporan keuangan dari tahun 2017 hingga 2021. Sumber data penelitian ini ialah data sekunder. Data dari penelitian ini diolah dengan menggunakan Aplikasi SPSS 25. Hasil penelitian ini menghasilkan temuan bahwa growth, profitabilitas, firm size, dan leverage terhadap risiko operasional mampu mempengaruhi secara signifikan pada risiko operasional. Lain halnya dengan hasil penelitian yang menghasilkan temuan bahwa CSR tidak mampu mempengaruhi secara signifikan pada risiko operasional

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“…(The maximum of CSR in Hexun's listed company social responsibility report is 100.) The standardized CSR scores were used to generate a squared term (CSR 2 ) to test the quadratic relationship between CSR and firm performance [83].…”

Section: Variablesmentioning

confidence: 99%

“…First, we conduct two-stage least squares (2SLS) regression to mitigate the endogeneity concern [87]. Based on the literature [83], we use the industry average of the company in the current year (Ind_CSR) as an instrumental variable. As Table 9 shows, the instrumental variables in the first stage are valid.…”

Section: Endogeneity Testmentioning

confidence: 99%

How Corporate Social Responsibility Affects Firm Performance: The Inverted-U Shape Contingent on Founder CEO

et al. 2022

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Despite abundant research on the relationship between CSR and firm performance, prior research generated highly inconsistent findings. No consensus has been achieved on the relationship between CSR and firm performance. The objective of this research is to examine how the relationship between CSR and firm performance is contingent on founders’ management roles, especially in the situation of the founder as CEO, which will provide insights into the inconsistent impacts of CSR. Based on panel data analysis, we empirically test the nonlinear relationship between corporate social responsibility (CSR) and firm performance for China’s Growth Enterprise Market (GEM) listed companies. We further explore how this relationship differs under two types of CEOs: founder CEOs and non-founder CEOs. Our econometric analysis produces two major findings. First, there is an inverted U-shaped relationship between CSR and firm performance. Second, the presence of founder CEO weakens the relationship between CSR and firm performance, making the inverted U-shaped curve flatter. This research makes both novel theoretical and practical contributions to entrepreneurship and organization research by providing an enriched understanding of the relationship between CSR and firm performance. It integrates multiple theories to create a framework within which the contingent impacts of CSR can be holistically understood. It also helps managers to realize the nonlinear economic consequences of CSR activities and the different regulatory effects of founder management.

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Does Corporate Social Responsibility Impact on Corporate Risk-Taking? Evidence from Emerging Economy

Cited by 8 publications

References 53 publications

Chinese Merchant Group Culture, Corporate Social Responsibility, and Cost of Debt: Evidence from Private Listed Firms in China

Chinese Merchant Group Culture, Corporate Social Responsibility, and Cost of Debt: Evidence from Private Listed Firms in China

Pengaruh CSR, Growth, Profitability, Firm Size, Financial Leverage Terhadap Risiko Operasional

How Corporate Social Responsibility Affects Firm Performance: The Inverted-U Shape Contingent on Founder CEO

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