Industry and community peers as drivers of corporate social responsibility in India: The contingent role of institutional investors

Singh, Shaili; Khare, Arpita; Pandey, Shivendra Kumar; Sharma, Dheeraj

doi:10.1016/j.jclepro.2021.126316

Cited by 28 publications

(26 citation statements)

References 68 publications

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“…The main effects of Mimetic on CSRD are analyzed in Models 1–3. Results reveal that Mimetic has a positive and significant effect on CSRD (1.897 ≤ β ≤ 2.253, p ‐value <0.01), validating hypothesis H1 (Gallego‐Álvarez & Pucheta‐Martínez, 2020; Singh et al, 2021; Singh & Guha, 2019). This supports the institutional theory, since it is demonstrated that mimetic pressures shape the CSR disclosures of companies operating within the same sector.…”

Section: Resultssupporting

confidence: 62%

“…Similar to previous research (Singh et al, 2021; Zeng et al, 2012), to proxy the mimetic pressures, a specific variable, Mimetic , was defined. By focusing on the reference sector of the company, the Mimetic variable was defined by using the following criterion: for each year t , for each company i and for each sector j , the mean of CSR D t,j was computed, and referred to the j sector, removing from the calculation the value assumed by CSRD of the j sector of the a company in the year t , that is CSRD a,t,j .…”

Section: Methodsmentioning

confidence: 99%

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Exploring the moderating effects of corporate social responsibility performance under mimetic pressures. An international analysis

Zampone

Sannino

García‐Sánchez

2022

Corp Soc Responsibility Env

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The purpose of this article is threefold. Firstly, it is aimed at ascertaining whether, in seeking social legitimization, companies disclose CSR information as a response to mimetic pressures. Secondly, it ascertains whether, by seeking economic legitimization, companies with superior CSR performance disclose CSR information to differentiate themselves from low-performing counterparts. Thirdly, it examines the moderating effects of CSR performance in the relationship between mimetic pressures and CSR disclosure, exploring how the social and economic legitimacy influence in tandem the CSR disclosure. The study is based on a sample of 10,395 firm-year observations coming from 1,993 international companies that released their CSR report in the 2011-2017 timespan. The results, in addition to demonstrating that both mimetic pressures and CSR performance have a positive bearing on the disclosure of CSR information, suggest that the interaction between mimetic pressures and CSR performance has an additive positive effect on CSR disclosure.

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Section: Resultssupporting

confidence: 62%

Section: Methodsmentioning

confidence: 99%

Exploring the moderating effects of corporate social responsibility performance under mimetic pressures. An international analysis

Zampone

Sannino

García‐Sánchez

2022

Corp Soc Responsibility Env

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“…It is highly likely to be carried out by benchmarking the best practices performed by countries or companies of a similar status. It is in line with the fact that colleagues influence corporate CSR participation in the community discovered ( Singh et al, 2021 ). Therefore, investors willing to start their businesses through CDM can find more practical solutions, ensure legitimacy, and succeed through existing cases by spending less through imitative actions ( DiMaggio and Powell, 1983 ).…”

Section: Conclusion and Discussionsupporting

confidence: 84%

Exploring the impact of environmental, social, and governance on clean development mechanism implementation through an institutional approach

Lee¹,

Choi²,

Roh³

et al. 2022

Front. Psychol.

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The study hypothesizes that the environmental, social, and governance (ESG) of the host country have a significant effect on clean development mechanism (CDM) implementation. As CDM incorporates sustainable development as one of the objectives for the green transition, many countries endeavor to adopt and implement CDM as their cleaner production method. Based on the institutional theory, the study aims to investigate the mechanism by which the institutional process of each ESG pillar makes an opportunity for a host country and to see how such country-specific factors influence the implementation of CDM projects. A county-year unbalanced sample drawn from World Bank and multinational CDM project data was analyzed using panel logistic and Poisson regression. Panel regression results show that high-energy intensity and low renewable electricity output as an environmental pillar positively affect CDM implementation. Unemployment and undernourishment as a social pillar positively affect CDM whereas low government effectiveness and the high rule of law positively affect CDM. In the results of zero-inflated Poisson regression, the direction of government effectiveness was upturned. The findings have broadened and deepened the ESG pillar based on the institutional theory and emphasized sustainable development rather than economic outputs.

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“…It has been well-documented in the strategic management literature that when the difference between the behavior of peers in the different fields is greater, then the degree of uncertainty will be higher in terms of following the institutional equivalents (Leary and Roberts, 2014;Machokoto et al, 2021;Raffaelli et al, 2013). Firms are likely to take cues from their peers simultaneously to assure of the right action while imitating (Christopher and Tilcsik, 2016;Singh et al, 2021). When the degree of uncertainty is greater, firms rely more on the legitimate reference group (Rao et al, 2001), consistent with the social acceptance theory (Wolsink, 2018).…”

Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 91%

Earnings management contagion: evidence from institutional equivalence

Bansal

2022

AJAR

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PurposeThe study aims to investigate how the presence and absence of institutional equivalents (interaction of industry peers and local peers) affect the earnings management practices of firms.Design/methodology/approachThe study uses discretionary accruals to operationalize earnings management. A sample of 18,744 Bombay Stock Exchange (BSE) listed firm years spanning over 12 financial years (March 2010–March 2021) has been considered and analyzed through panel data regression models.FindingsThe author’s results show that the earnings management practices of a firm's institutional equivalents and the firm's own earnings management are positively associated, implying that firms closely follow their institutional equivalents. This association is found to be more pronounced among focal firms when the difference between the earnings management levels of industry peers and local peers is greater. Further, the author find that large firms aggressively imitate their industry peers and local peers, whereas profitability does not influence their imitation behavior.Practical implicationsThe author’s findings have implications for understanding peer imitation processes, particularly when firms face increasingly multifaceted institutional environments. It suggests auditors and analysts take into account the earnings management practices of local and industry peers while analyzing the client's financial statements and making forecasts, respectively.Originality/valueThe study is among the pioneering attempts to explore the domain of earnings management from the lens of institutional equivalence and provides compelling evidence that the interaction of industry peers and local peers impacts the earnings management practices of firms.

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Industry and community peers as drivers of corporate social responsibility in India: The contingent role of institutional investors

Cited by 28 publications

References 68 publications

Exploring the moderating effects of corporate social responsibility performance under mimetic pressures. An international analysis

Exploring the moderating effects of corporate social responsibility performance under mimetic pressures. An international analysis

Exploring the impact of environmental, social, and governance on clean development mechanism implementation through an institutional approach

Earnings management contagion: evidence from institutional equivalence

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