Financial Decision and Its Relationship with Economic Value Added

Escalera-Chávez, Milka Elena; Rojas-Kramer, Carlos A.; Garcı́a-Santillán, Arturo

doi:10.5901/mjss.2015.v6n1p278

Cited by 2 publications

(2 citation statements)

References 8 publications

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“…In doing so, the EVA has become more popular, and some individuals use this information to help in their investment decisions (Sharma and Kumar, 2010). Furthermore, the EVA also influences how managers can decide investments that will define the firm's future (Escalera-Ch avez et al, 2015). Due to the importance of these indexes in the decision processes, we explore some contributions for managers and practitioners.…”

Section: Managerial Implicationsmentioning

confidence: 99%

Corporate social responsibility and the impact on economic value added: the role of environmental innovation

Schiessl

Korelo

Cherobim

2022

EBR

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Purpose Corporate social responsibility (CSR) is a common strategy implemented by companies due to social, ethical and policy pressures to reduce its impact on society, economy and environment. However, whether CSR adds or decreases firms’ value remains little explored. Thus, this study aims to evaluate the impact of CSR adoption on companies’ economic value added (EVA). The authors also tested a mechanism of environmental innovation and the moderation role of a firm’s size. Design/methodology/approach The authors performed a regression analysis and a mediation process analysis using dataset from 4,287 largest companies worldwide to investigate this issue. The a dataset was collected from Eikon, a Thomson Reuters platform. Findings The results revealed four main findings. Companies with high CSR indexes decreased EVA; environmental innovation mediated the effect of CSR on EVA; the firm size positively moderated the effect of CSR on EVA and firm size positively moderated the effect of CSR on environmental innovation. Originality/value To the best of the author’s knowledge, this research is the first endeavor to analyze CSR’s effect on EVA and the mediation role of environmental innovation using the most prominent firms worldwide. Furthermore, the results highlight exciting implications for literature, managers and policymakers.

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Section: Managerial Implicationsmentioning

confidence: 99%

Corporate social responsibility and the impact on economic value added: the role of environmental innovation

Schiessl

Korelo

Cherobim

2022

EBR

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“…Due to the rise in popularity of EVA, some individuals utilize this information to make financial decisions. EVA also influences managers' ability to select investments that shape a company's future (Escalera-Chávez et al, 2015;Sharma & Kumar, 2010). Therefore, the index's contributions to managers and practitioners were examined because of its significant role in the decision-making process.…”

Section: Discussionmentioning

confidence: 99%

Impact of Corporate Social Responsibility on Economic Value Added: The Role of the Supply Chain Management Environment at LQ45 Indonesia

Rahma

Hersugondo

2022

j. Organisasi dan manaj.

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Purpose – This research examined the effect and strategy of CSR (Corporate Social Responsibility) on EVA (Economic Value Added) using the SCME mechanism. Methodology – Population data sets were derived from the index LQ45 for the period of August 2022 and compared to the previous six years. Furthermore, a purposive sampling technique was applied to conduct a regression analysis, while mediation used the Hayes process version 4.2, Model 8. The data set was compiled using information from IDX, Bloomberg, and Eikon platforms (Thomson Reuters). Findings – The results highlighted four key conclusions, as follows: High CSR index companies observed a rise in EVA; SCME mediates the effects of CSR on EVA; Company size considerably modifies the effect of CSR on EVA; Company size significantly modifies the effect of CSR on SCME. Originality – This research represents a novel attempt to investigate the relationship between CSR and EVA, the company size dimension's mediative role, and the SCME mediating role in Indonesia's LQ45 Index. The results present intriguing management, policy, and literature implications.

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Financial Decision and Its Relationship with Economic Value Added

Cited by 2 publications

References 8 publications

Corporate social responsibility and the impact on economic value added: the role of environmental innovation

Corporate social responsibility and the impact on economic value added: the role of environmental innovation

Impact of Corporate Social Responsibility on Economic Value Added: The Role of the Supply Chain Management Environment at LQ45 Indonesia

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