Enhancing performance by disclosing more: some evidence from Japanese companies

Kumarasinghe, Sriyalatha; Will, Mitchell; Hoshino, Yasuo

doi:10.1108/par-01-2016-0001

Cited by 9 publications

(5 citation statements)

References 55 publications

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“…Li et al (2016) find a positive association between CSR disclosure and firm value. Additionally, De Klerk et al (2015) and Kumarasinghe et al (2018) find that higher levels of CSR disclosure are positively associated with stock market performance. Although CSR reporting, CSR performance and its impact on a firm's value have been studied extensively, an area that has not been fully explored is its relationship with executive compensation.…”

Section: Introductionmentioning

confidence: 99%

Empirical examination of the direct and moderating role of corporate social responsibility in top executive compensation

Malik

Shim

2022

PAR

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Purpose The purpose of this study is to examine the direct association between firms’ corporate social responsibility (CSR) scores, CSR disclosures and executive compensation. This study further investigates the moderating role of CSR in the association between executive compensation and firms’ stock market and accounting performances. Design/methodology/approach This study collects CEO compensation information from the Execucomp database and CSR performance information from the MSCI ESG database. The final sample consists of 4,193 firm-year observations for 1,318 US public firms for the period 2009–2013. This study uses lagged regression analysis to test the direct and moderating roles of CSR in executive compensation. Findings Regarding the direct role of CSR, this study finds that CEO compensation is positively related to CSR performance but not to firms’ issuance of CSR reports. This study also finds a positive moderating role of CSR in the relationship between CEO compensation and firms’ stock performance. However, the authors do not identify any role for CSR in the relationship between CEO compensation and accounting performance. The results also show a negative association of CSR in the relationship between CEO compensation and firm size. Originality/value This study fills a gap in the literature by providing empirical evidence on the direct association between CSR and CEO compensation and how the association between CEO compensation and firm performance is moderated by CSR scores. The novel findings of this study will benefit managers, boards of directors, shareholders and other stakeholders, including regulators and policymakers.

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Section: Introductionmentioning

confidence: 99%

Empirical examination of the direct and moderating role of corporate social responsibility in top executive compensation

Malik

Shim

2022

PAR

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“…Prior studies in developed countries had observed companies' trend of using SR to enhance company reputation. For example, Kumarasinghe et al (2017) found that SR activities boost the nancial and market e ciency of Japanese companies, building on the legitimacy theory's hypothesis that companies would require more group disclosures following product changes.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

The Level of Sustainability Reporting of Malaysian IPO Companies

Abbas¹,

Mehmood

Manhal³

et al. 2022

Preprint

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Purpose – This paper aims to determine the level of sustainability reporting (SR) in Malaysian initial public offering (IPO) companies. Due to the general poor awareness about SR and its dimensions, these aspects have not been receiving the necessary push from the public domain. Design/methodology/approach – This study is exploratory in nature employing secondary data through the content analysis of the annual reports of 139 sampled IPOs listed on Bursa Malaysia for the period of 2007–2017. The data was analysed using descriptive statistics, whilst extent and quality were used as measures of SR. Findings – The results show that the extent and quality of SR in Malaysian IPO companies have improved over the years with a small improvement from one year to the next. The extent of SR was at 20.70% with society disclosure at 32.77% and energy disclosure at 22.48%, while employee disclosure showed the highest prevalence at 34.87% and product disclosure recorded the lowest prevalence at 9.88%. The quality of SR was at 32.04% with society disclosure recording the highest prevalence at 36.09%, energy disclosure at 20.28%, employee disclosure at 34.13%, and finally product disclosure indicating the lowest prevalence at 9.50%. Research limitations/implications – The dimensions of SR namely society, energy, employee, and product issues received little interest from most of the companies. This study proposes the need for additional studies investigating SR in IPO companies. Originality/value – This study makes a significant contribution to the information related to SR in Malaysian IPO companies. The findings can facilitate financial institutions and regulatory agencies in driving responsibility on the part of companies regarding SR issues.

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“…Research that discusses the relevance value of CSR disclosure has been carried out worldwide with mixed results and resulting discussions. Based on research conducted by (Kumarasinghe et al, 2018;Nuriyanto et al, 2020;Saragih, 2020), disclosures made by companies, especially regarding CSR or social responsibility, are related to market responses to companies positively which indicates that CSR information provided disclosed a substantial relevance value. Many investors are already aware of the importance of the company's concern for social conditions and the surrounding environment.…”

Section: Value Relevance and Corporate Social Responsibility Disclosu...mentioning

confidence: 99%

Value relevance and corporate social responsibility disclosure: A literature review

Wulan

2022

AJEBM

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This article presents a review of the research literature that discusses the relevance of the value of CSR disclosure conducted in various research before. The popularity of the topic of value relevance today is still a hot topic of discussion among researchers, even though there have been many studies that have discussed value relevance analysis. This phenomenon is caused because there is much stigma regarding the discussion of whether CSR disclosure does have a relevant value or not. The literature review is limited to research conducted from 2020 to 2022 using reputable and credible articles. This article discusses the evidence for the value relevance phenomenon. The results of this article indicate that there are still differences in the research results that discuss the relevance value of CSR disclosure. There are several companies with good enough CSR disclosure to have a high relevance value, but there are also companies with the opposite result. This result can be caused by various influencing factors such as the ability of CSR disclosure owned by each company, the ability of the board of directors to regulate and make policies regarding CSR, research samples, political conditions, and assumptions and stigma on investors in certain areas. Further research is expected to expand the scope of research to provide arguments regarding the value of relevance more accurately.

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Enhancing performance by disclosing more: some evidence from Japanese companies

Cited by 9 publications

References 55 publications

Empirical examination of the direct and moderating role of corporate social responsibility in top executive compensation

Empirical examination of the direct and moderating role of corporate social responsibility in top executive compensation

The Level of Sustainability Reporting of Malaysian IPO Companies

Value relevance and corporate social responsibility disclosure: A literature review

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