Does firm‐level political risk influence corporate social responsibility (CSR)? Evidence from earnings conference calls

Chatjuthamard, Pattanaporn; Treepongkaruna, Sirimon; Jiraporn, Pornsit; Jiraporn, Napatsorn

doi:10.1111/fire.12263

Cited by 49 publications

(23 citation statements)

References 71 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Our study is inconsistent with previous studies, which argued that "philanthropic giving" affects firm performance (Brammer and Millington, 2005). The moral capital of CSR exhibits similarities with social capital in assuring investors and creditors that a firm is responsible (Chatjuthamard et al, 2021;Ongsakul et al, 2020). It is insignificant in an Indian context to influence debt financing.…”

Section: Multi-variate Results: Csr Disclosure (Moral and Exchange Ca...contrasting

confidence: 99%

“…Moral capital reflects the firm's philanthropic nature (Gupta and Krishnamurti, 2018;Jiao, 2010;Lin and Dong, 2018). Similarly, we see that pursuance of CSR by firms accrues social capital, which assures investors and stakeholders of the firm's commitment to acting responsible (Chatjuthamard et al, 2021;Ongsakul et al, 2020). Similarly, exchange capital is the component of CSR that deals with employee relations, product quality and branding (Godfrey et al, 2009;Gupta and Krishnamurti, 2018;Oware and Iddrisu, 2021).…”

Section: Csr and Debt Financingmentioning

confidence: 86%

Section: Literature Reviewmentioning

confidence: 96%

See 2 more Smart Citations

CSR disclosure and debt financing in India: does CEO tenure matter?

Oware

Appiah

Worae

2022

JAAR

View full text Add to dashboard Cite

PurposeThe study aims to examine whether corporate social responsibility (CSR) disclosure does improve debt financing of listed firms with sustainable development agendas coupled with high chief executive officer (CEO) tenure in India.Design/methodology/approachEmploying panel regression based on fixed effect and instrumental variable regression with fixed effect assumptions, the study examined data from the Bombay stock exchange from the period 2010 to 2019.FindingsThe study demonstrates that the disclosure of current exchange capital and moral capital cannot cause a firm to access short-term and long-term debt financing. However, lag investment in moral capital causes a positive effect on short-term debt financing. The second findings show that CEO tenure has a positive and statistically significant association with short-term debt financing and an insignificant association with long-term debt financing. The third findings show that the interaction of current CSR disclosure (moral and exchange capital) and CEO tenure is insignificant in affecting short-term and long-term debt finance. However, the interaction of lag CSR disclosure (moral and exchange capital) and CEO tenure positively affect short-term debt financing. The study addresses any endogeneity concerns arising from the CSR disclosure-debt financing association.Research limitations/implicationsThis study uses a single country to examine the inter-relationship between CEO tenure and debt financing and CSR measured by moral capital and exchange capital, thereby limiting the study's results for generalisation.Practical implicationsThe observation is that moral capital investment and disclosure do not guarantee new entrants the chance to access debt financing, but subsequent and lag CSR disclosure ensures access.Originality/valueNo studies examine morality from CSR disclosure on debt financing. This study shows that decoupling CSR into exchange capital and moral capital in accessing debt financing presents new inputs for scholarly debate on CSR.

show abstract

Section: Multi-variate Results: Csr Disclosure (Moral and Exchange Ca...contrasting

confidence: 99%

Section: Csr and Debt Financingmentioning

confidence: 86%

See 1 more Smart Citation

CSR disclosure and debt financing in India: does CEO tenure matter?

Oware

Appiah

Worae

2022

JAAR

View full text Add to dashboard Cite

show abstract

“…However, it was amended in 2013 and made mandatory CSR and firm performance (Ministry of Corporate Affairs, 2013). The pursuance of CSR by firms accrues social capital, which assures investors and stakeholders of the firm's commitment to acting responsible (Chatjuthamard et al, 2021;Ongsakul et al, 2021). The consequence of accrued social capital of CSR affects firm performance (Cris ostomo et al, 2011;Liu and Zhang, 2017;Jitmaneeroj, 2018;Quéré et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

“…Morality or moral capital nature is not associated with self-serving activities towards profitability but more of benevolence to the social well-being and ensuring the protection of the natural environment (Linn and Dong, 2018). The benefit of morality reporting is not only to the society but also to the firm, and therefore, an increase in social capital acts as insurance or goodwill to mitigate adverse events or boost the patronage of firm products (Linn and Dong, 2018;Chatjuthamard et al, 2021;Ongsakul et al, 2021). As morality is essential to communities, but countries are changing their CSR policies, we ask whether the shift from voluntary to mandatory reporting can vary a firm's commitment to the moral capital of CSR undertaken by firms.…”

Section: Introductionmentioning

confidence: 99%

Moral capital of CSR and firm performance: Does a shift from voluntary to mandatory policy matter in an Indian context?

Oware

Iddrisu

2021

SBR

View full text Add to dashboard Cite

Purpose There is a current agitation by community leaders, global leaders and society on the morality aspect of corporate social responsibility (CSR) activities of firms. The change in policy raises the question of whether moral capital is affected. Therefore, this study aims to examine whether the shift from voluntary to mandatory reporting increases the moral capital of CSR and also whether moral capital affects the firm performance of listed firms in India. Design/methodology/approach This study examines 800 firm-year observations on the Bombay Stock Exchange (split into 320 firm-year observations for the voluntary period and 480 firm-year observations for the mandatory period). This study uses panel regression with random effect assumptions for data interpretation. Findings The first findings show that a shift from voluntary to mandatory policy on CSR increases the moral capital value of listed firms in India. The second and third findings show that voluntary reporting of moral capital has no significant association with market performance (stock price returns [SPR]) or firm value (Tobin’s q). The fourth findings show a negative and statistically significant association between mandatory reporting of moral capital and SPR but an insignificant association with Tobin’s q. This study conducted a robustness test, and results show that the previous year 1 and 2 moral capital for voluntary and mandatory periods has no association with SPR and Tobin’s q. Originality/value Although prior research has examined the effect of change in policy from voluntary to mandatory reporting on firm performance, little is known about the impact of moral capital on firm performance for the emerging economies, including India.

show abstract

The Impact of Firm‐Level Political Risk on Eco‐Innovation: The Moderating Effect of CEO Power

Owolabi,

Mousavi,

Gozgor

et al. 2024

Bus Strat Env

View full text Add to dashboard Cite

This study examines the impact of firm‐level political risk on eco‐innovation at the firm level, particularly emphasizing the moderating role of CEO power in this relationship. Using a dataset from 33 countries from 2006 to 2022, we employ two‐step dynamic panel data estimations to address endogeneity concerns. The findings highlight a positive impact of political risk on eco‐innovation, which is further strengthened in the presence of a powerful CEO. This evidence implies that effective leadership from CEOs can assist firms in navigating political risks and advancing sustainable initiatives. The results remain robust across various specifications, including alternative measurements for firm‐level political risk. The study highlights the crucial role of CEOs in managing political risks and facilitating eco‐innovative practices within firms.

show abstract

Does firm‐level political risk influence corporate social responsibility (CSR)? Evidence from earnings conference calls

Cited by 49 publications

References 71 publications

CSR disclosure and debt financing in India: does CEO tenure matter?

CSR disclosure and debt financing in India: does CEO tenure matter?

Moral capital of CSR and firm performance: Does a shift from voluntary to mandatory policy matter in an Indian context?

The Impact of Firm‐Level Political Risk on Eco‐Innovation: The Moderating Effect of CEO Power

Contact Info

Product

Resources

About