How do investors value corporate social responsibility? Market valuation and the firm specific contexts

Hao, Lu; Oh, Won Yong; Kleffner, Anne; Chang, Young Kyun

doi:10.1016/j.jbusres.2020.11.063

Cited by 54 publications

(44 citation statements)

References 87 publications

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“…The relationship between the private sector’s CSR initiatives and SDGs is largely recognized and can generate positive financial effects [ 33 – 36 ]. For example, Schramade [ 37 ] explored the investment opportunities of SDGs by identifying two kinds of reasons for investing in SDGs: returns to society and returns to shareholders which evidences some differences among SDGs in terms of estimated amounts of opportunities.…”

Section: Overcoming Financial Gaps For Sdg Attainment At the Country ...mentioning

confidence: 99%

The economics of the UN Sustainable Development Goals: does sustainability make financial sense?

et al. 2022

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The implementation of the UN Sustainable Development Goals is a global priority, but one whose full implementation is vulnerable to the high costs associated with it. This raises the question: does the implementation of the SDGs make financial sense? This article addresses this question and outlines the need to raise awareness of the economic benefits of implementing the global goals. Further, it presents and discusses the main financial gaps to achieve the Sustainable Development Goals by 2030.

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Section: Overcoming Financial Gaps For Sdg Attainment At the Country ...mentioning

confidence: 99%

The economics of the UN Sustainable Development Goals: does sustainability make financial sense?

et al. 2022

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“…By disclosing their activities through CSR reports, companies can enhance their reputation and legitimacy and even improve their financial performance as investors consider corporate responsibility when assessing companies’ future profitability (Lu et al, 2021). The way information is disclosed within reports can affect the response of stakeholders (Z. Wang et al, 2018).…”

Section: Discussionmentioning

confidence: 99%

Form and substance: Visual content in CSR reports and investors’ perceptions

Invernizzi

Bellucci

Acuti

et al. 2021

Psychology and Marketing

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Although the importance of corporate social responsibility (CSR) reporting is well recognized, the influence of the visual characteristics of CSR reports on stakeholders' evaluations of companies is largely overlooked. Drawing on theories of the processing of fluency and legitimacy, this study deploys a content analysis and a realistic laboratory experiment to assess how the use of visuals in CSR reports affects investors' perceptions. With an international sample of large companies, the content analysis explores how reports use visuals and convey messages to readers.The subsequent experiment measures the optimal number of images in reports related to social responsibility. Specifically, we investigate whether a larger number of images increases the processing fluency of investors. Based on the theoretical background and the content analysis findings, we expect that an increase in processing fluency reduces perceived hypocrisy and, in turn, increases perceived organizational legitimacy. The results show that a moderate number of images (vs. zero images or a high number of images) increases investors' processing fluency and decreases their perception of hypocrisy, leading to higher levels of organizational legitimacy. This study concludes by providing actionable implications for how companies can improve their legitimacy through nonfinancial disclosure.

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“…The extant literature acknowledges that the risk-reduction effect of CSR (Lu et al, 2021) The purpose of this study is to investigate the relationship between CSR and the effectiveness of IC and concurrently analyze female representation on the board, as well as to check whether female directors contribute to corporate transparency or not.…”

Section: Csr and Internal Controlmentioning

confidence: 99%

Does female representation on corporate boards boost the strengthening of internal control in socially responsible firms?

Pasko

Yang

Ткаченко

et al. 2022

Investment Management and Financial Innovations

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This study examines the relationship between corporate social responsibility and the effectiveness of internal control, while simultaneously examining board gender diversity to check whether female directors contribute to corporate transparency or not. The sample of the study comprises 15,231 firm-year observations of companies listed on the Shanghai and Shenzhen stock exchanges from 2013 to 2018. The raw data for variable calculation come from authoritative and reputable sources, such as China Stock Market and Accounting Research (CSMAR), DIB Internal Control database, and RKS CSR score. The empirical study shows that socially high-performing firms possess a more effective internal control mechanism. However, the paper failed to find a positive association of gender diversity on the board with internal control effectiveness, and failed to attest reinforcing effect of female directors on internal control in socially responsible firms. This study suggests that in China’s institutional environment, female directors are unlikely to contribute to increased corporate transparency. This study is useful for both regulators and company management to establish a master plan and tactics for board composition to improve corporate transparency, taking into account the effect of the investigated phenomena within the jurisdiction under study. AcknowledgmentThis paper is co-funded by the European Union through the European Education and Culture Executive Agency (EACEA) within the project “EMBRACING EU CORPORATE SOCIAL RESPONSIBILITY: CHALLENGES AND OPPORTUNITIES OF BUSINESS-SOCIETY BONDS TRANSFORMATION IN UKRAINE” 101094100 — EECORE — ERASMUS-JMO-2022-HEI-TCH-RSCH-UA-IBA / ERASMUS-JMO-2022-HEI-TCHRSCH https://eecore.snau.edu.ua/

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How do investors value corporate social responsibility? Market valuation and the firm specific contexts

Cited by 54 publications

References 87 publications

The economics of the UN Sustainable Development Goals: does sustainability make financial sense?

The economics of the UN Sustainable Development Goals: does sustainability make financial sense?

Form and substance: Visual content in CSR reports and investors’ perceptions

Does female representation on corporate boards boost the strengthening of internal control in socially responsible firms?

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