Long-term financial performance of corporate social responsibility

Shirasu, Yoko; Kawakita, Hidetaka

doi:10.1016/j.gfj.2020.100532

Cited by 32 publications

(27 citation statements)

References 38 publications

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“…We hypothesize that CSR initiatives impact an organization's stock value. The choice of ROE as a dependent variable aligns with (Shirasu and Kawakita, 2020). ROE is determined by comparing the net income and stockholder's equity as shown in Eqn 5.…”

Section: Net Profit Marginmentioning

confidence: 99%

“…Authors are unanimous in their view of the importance and role of corporate social responsibility in achieving sustainable development (Abbas, 2020;Shirasu and Kawakita, 2020). The authors espoused that long-term growth can be achieved if firms focus not only on their shareholders but also on their broader stakeholders' interests through corporate governance and CSR activities.…”

Section: Introductionmentioning

confidence: 99%

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Corporate social responsibility and financial performance: Evidence from U.S tech firms

Okafor

Adeleye

Adusei

2021

Journal of Cleaner Production

255

102

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This study provides quantitative evidence on the positive effect of spending on socially responsible causes on the long-term growth of U.S technology companies. Maximizing shareholder wealth remains the overarching principle driving organizational strategies, but this has always conflicted with other stakeholders' interests. Because of these conflicting priorities, entrenching the principles of social responsibility has become imperative. We leverage content analysis, fixed-effects and pooled regression models to examine the effect of engaging in CSR on tech companies' corporate financial performance in the U.S. The empirical study consists of panel data of the top 100 tech companies listed on the S&P 500 for the period 2017 and 2019. We examine the link between corporate financial performance and CSR proxies. The main results indicate that tech companies that spend more on CSR experience a corresponding increase in revenue and profitability. Contrary to previous studies, we observe insignificant evidence to support a relationship between CSR and Tobin's Q.

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Section: Net Profit Marginmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Corporate social responsibility and financial performance: Evidence from U.S tech firms

Okafor

Adeleye

Adusei

2021

Journal of Cleaner Production

255

102

View full text Add to dashboard Cite

show abstract

“…We expect a negative sign. Following various authors (Khediri, 2021;Shirasu and Kawakita, 2020), the financial leverage was calculated by using the ratio of the book value of total debt to the book value of equity. A negative sign is expected.…”

Section: Methodsmentioning

confidence: 99%

The European Union’s Environmental Policy and Long-Term Investments of Enterprises

Janicka¹,

Sajnóg²

2021

ERSJ

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Purpose: Current European Union efforts are focused on creating regulations that are conducive to long-term investor commitment, i.e. they are fighting short-termism on financial markets. Enterprises that implement the European Union's environmental policy are seen to engage long-term financial resources, which should therefore dominate the structure of their assets. The primary goal of the paper is to ascertain whether a company's high environmental performance (E-index) is positively correlated with the value of its long-term investments. Design/Methodology/Approach: The empirical research is carried out in two parts. The first part presents the correlation between the company's E-index and the share of its long-term investments in total assets. For comparison, we examine these relationships with ESG, as well as the S and G scores. In the second part, we assess the character and strength of the impact of the company's E-index on the value of its long-term investments. This study includes companies listed on 14 Western European stock exchanges, covering the period 2002 to 2019. Findings: Contrary to our assumptions, we find, first, that the environmental index is negatively related to the share of long-term investments in assets in most countries. Second, using panel dataset for the analysed European Union markets, we find evidence that the environmental index negatively affects the value of long-term investments, indicating that the current actions undertaken by the European Union have no empirical justification. Practical Implications: The results of the research may be useful for researchers, practitioners, and regulators from the European Union and the European Union countries in understanding the relationship between a company's E-index and its investments. Originality/Value: There is no research which proves that the increase in long-term investments, and thus the increase in the availability of long-term capital, is of key importance for enterprises, so our research is pioneering and unique.

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“…Authors would like to thank Profs. Shirasu and Kawakita, 2020 for their informative paper and Professor Nishikawa for his constructive comments.…”

Section: Acknowledgementsmentioning

confidence: 99%

Covid-19 and Optimal Portfolio Selection for Investment in Sustainable Development Goals

Yoshino

Taghizadeh–Hesary

Otsuka

2021

Finance Research Letters

172

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Highlights SDGs are tackling various objectives. Various consulting companies define SDG in different manners. The asset allocation of each investor results in distorted portfolio allocation. The desired portfolio allocation can be achieved by taxing pollutions and wastes. The paper theoretically develops a model for optimal asset allocation in SDGs.

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Long-term financial performance of corporate social responsibility

Cited by 32 publications

References 38 publications

Corporate social responsibility and financial performance: Evidence from U.S tech firms

Corporate social responsibility and financial performance: Evidence from U.S tech firms

The European Union’s Environmental Policy and Long-Term Investments of Enterprises

Covid-19 and Optimal Portfolio Selection for Investment in Sustainable Development Goals

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