Equity market response to natural disasters: Does firm's corporate social responsibility make difference?

Malik, Ihtisham; Chowdhury, Hasibul; Alam, Md. Samsul

doi:10.1016/j.gfj.2022.100801

Cited by 15 publications

(4 citation statements)

References 111 publications

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“…Chulkov and Wang (2023) indicate that good CSR performance help firms to increase financial forecast accuracy, decrease earnings surprises and increase financial analysts' coverage, and these relationships are more significant for non-financial constraints firms. Malik et al (2023) show that the after the natural disaster happen, CSR increase firms' performance and this relationship is more obvious for low financial constraint firms. Zhao et al (2020) conclude that increase in economic policy uncertainty will decrease firms' CSR participation, and this negative relationship is more significant for severe financial constraint firms.…”

Section: Moderation Effects Between Csr and Financing Constraintsmentioning

confidence: 96%

“…In addition to the direct impact of financing constraints on CSR, it also has moderation effect on the relationship between CSR and other factors. The relationship between CSR and factors like financial performance, survival, risks, earning manipulation, political incentive, financial forecasts, disaster resilience, economic policy uncertainty are more pronounced in financially constrained firms (Chulkov and Wang, 2023;Malik et al, 2023;Fernandes et al, 2023;Yang et al, 2022;Nguyen and Nguyen, 2021;Choi et al, 2021;Park et al, 2020;Wang et al, 2020;Zhao et al, 2020).…”

Section: Background and Rationalementioning

confidence: 99%

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A Systematic Literature Review Unveiling the Nexus between CSR and Financing Constraints in Different Scenarios: Facilitating, Inhibiting or Moderating?

Cheng,

San,

Hisyam Ab Razak

2024

IJARBSS

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Nowadays, firms are facing serious financing constraints and one of the mostly used method to alleviate this situation is to rebuild firms' reputations through increasing firms' corporate social responsibilities (CSR) performance. But the mechanisms between CSR and financial constraints are still not clearly and comprehensively demonstrated. Thus, based on above motivations, this literature is aimed at systematically reviewing the analysis of existing researches on the relationship between CSR and financing constraints by using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA). Keywords and Boolean operator are used to search articles in Scopus database related to this topic and the last search was done in Nov. 2023. Later, several inclusion and exclusion criteria are used to successfully identify 57 most relevant studies. This research then summaries these 57 articles, conducts bibliometric analysis and relationship analysis on them. Results indicate that there are facilitating, inhabitation and moderating effects between CSR and financial constraints. This study has some limitations such as it only searches relevant articles in Scopus, it includes articles not ranking in Journal Citation Report, it does not pose time constraints when selecting papers, it exists risk of author bias because it adopts qualitative method, and it has risks that not all of the relevant studies are included in this study. However, this study makes new contributions to existing study, providing academic contributions/implications on the thoroughly understandings of relationship and importance between CSR and financial constraints, and also providing practical contributions/implications for parties inside and outside the firms to understand how to appropriately use CSR to help alleviate financing constraints. Last but not least, several aspects that worth future research are also mentioned in the discussion part.

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Section: Moderation Effects Between Csr and Financing Constraintsmentioning

confidence: 96%

Section: Background and Rationalementioning

confidence: 99%

A Systematic Literature Review Unveiling the Nexus between CSR and Financing Constraints in Different Scenarios: Facilitating, Inhibiting or Moderating?

Cheng,

San,

Hisyam Ab Razak

2024

IJARBSS

View full text Add to dashboard Cite

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“…Recent studies have also explored the role of Corporate Social Responsibility (CSR) in responding to natural disasters. Malik, Chowdhury and Alam (2023) observed that companies with CSR activities in the United States performed better in the market following natural disasters. Additionally, the impact of changes in credit ratings resulting from natural disasters has been investigated.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

The Impact of 2023 Kahramanmaraş Earthquakes on Real Estate Related Sectors: An Event Study Analysis

ŞENGÜL GÜNEŞ,

GÜNEŞ,

GÜNEŞ

2023

Kafkas Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi

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Kahramanmaraş earthquakes devastatingly hit the northern Syria and 11 provinces of Türkiye, causing thousands of deaths, injuries and property losses. The magnitude of the earthquakes and the extent of their impacts were huge enough to affect the entire Turkish economy. Real estate industry has been one of the most affected sectors as thousands of buildings were collapsed or damaged by the quake. This study aims to explore the impacts of Kahramanmaraş earthquakes on real estate related sectors in the Turkish stock market: Construction, cement-concrete, iron-steel, real estate investment trusts, and insurance. Using an event study methodology, our short-run analyses indicated that all given sectors were affected by the earthquakes. According to our findings, abnormal returns varied among the sectors: The construction materials sectors had positive abnormal returns while the insurance sector did abnormal returns on the opposite way. The findings are vital for market participants, policymakers and governments.

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“…A related study by Lanfear, Lioui and Siebert (2019) found a significant abnormal impact of U.S. landfall hurricanes on the US stock markets during the period covering 1990 to 2017. Furthermore, previous empirical research found that albeit environmental disaster, its effect on stock market does depend on a number of factors, which includes inter alia the intensity of of disaster (Mahalingam, Coburn, Jung, Yeo, Cooper & Evan 2018;Seetharam, 2017), stage of economic development of a country (Toya & Skidmore, 2007) and length of disaster (Malik, Chowdhury & Alam, 2023). Aside from the foregoing, some other strands of research have considered disease pandemic as another form of disaster that may affect stock markets.…”

Section: Literature Review Literature Reviewmentioning

confidence: 99%

A Review of Stock Market Impact of Environmental Cataclysms and Lessons for Investors

Ngwakwe

2023

CJFA

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The objective of this paper is to present a review analysis of stock market impact of environmental disaster with the factors that orchestrate the impact, and to offer a novel framework for investors and managers. The paper applied an in-depth empirical review and synthesis method. Findings from the review and synthesis of empirical literature provide strong evidence that environmental disasters have diverse effects on the stock markets with majority of the literature reporting adverse effects on the stock markets. Additionally, findings are more preponderant on short run impact than on long run effects. Findings also show that environmental disasters may offer unique arbitrage opportunities for short-selling investors. The paper concludes by highlighting the capacity of environmental finance as one of the catalysts to bolster corporate adaptive capacity to environmental disaster. Furthermore, the degree of environmental disaster impact on stock market may depend on factors such as the type of environmental disaster, geographical location of environmental disaster, economic sector, stage of economic development, length of disaster and intensity of disaster. Accordingly, the paper develops a framework, which is recommended as a model for further research agenda on environmental disaster effect on stock markets.

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Equity market response to natural disasters: Does firm's corporate social responsibility make difference?

Cited by 15 publications

References 111 publications

A Systematic Literature Review Unveiling the Nexus between CSR and Financing Constraints in Different Scenarios: Facilitating, Inhibiting or Moderating?

A Systematic Literature Review Unveiling the Nexus between CSR and Financing Constraints in Different Scenarios: Facilitating, Inhibiting or Moderating?

The Impact of 2023 Kahramanmaraş Earthquakes on Real Estate Related Sectors: An Event Study Analysis

A Review of Stock Market Impact of Environmental Cataclysms and Lessons for Investors

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