Ownership structure and corporate social responsibility in India: empirical investigation of an emerging market

Manogna, R L

doi:10.1108/ribs-07-2020-0077

Cited by 31 publications

(13 citation statements)

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“…This equity distribution is fundamental to corporate governance because it shapes the managers’ incentives and hence the performance of the firms they run. Prior studies have reported that ownership structure does matter for firm’s social performance (RL, 2021; Dintimala and Amril, 2018; Chen et al , 2019; Feng et al , 2018; Voinea et al , 2019; Zaid et al , 2020; Alshbili et al , 2019; Javeed and Lefen, 2019; Garanina and Aray, 2020; Govindan et al , 2021). As different owners may have different goals and decision-making strategies (Hoskisson et al , 2002; Dam and Scholtens, 2013; Sreevas et al , 2020), the relative value that they put upon CSR initiatives and investments can differ widely (Oh et al , 2011; Liu et al , 2019).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Prior studies have examined the impact of firm‐specific characteristics (D’Amato and Falivena, 2020; Welbeck et al , 2020), board structure (Alabdullah et al , 2019; Kachouri et al , 2020; Shahbaz et al , 2020) and audit committee attributes (Kolsi et al , 2021; Appuhami and Tashakor, 2017; Qaderi et al , 2020; Agyei-Mensah, 2019) on companies’ decisions about CSR activities. However, the extent to which the ownership structure explains the firm’s social engagement is still little explored (Chen et al , 2019; Oh et al , 2011; Zaid et al , 2020; RL, 2021; Ye and Li, 2021). Because different owners may have different motivations and time horizons for corporate decisions (Raimo et al , 2020; Hoskisson et al , 2002), we expect that they will have different attitudes toward CSR engagement.…”

Section: Introductionmentioning

confidence: 99%

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The impact of ownership structure on corporate social responsibility: the moderating role of financial performance

Dakhli

2021

SBR

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Purpose The purpose of this paper is to investigate the relationship between ownership structure and corporate social responsibility (CSR). Specifically, this paper examines the impact of financial performance on the relationship between ownership structure and CSR. Design/methodology/approach This study uses panel data set of 200 French firms listed during 2007–2018 period. The direct and moderating effects were tested by using multiple regression technique. Findings The results indicate that investors have different attitudes toward CSR engagement. While institutional ownership affects positively CSR engagement, managerial ownership shows a negative effect. Findings also show that financial performance accentuates these effects. Research limitations/implications The findings have practical implications that may be useful to regulators and managers interested in enhancing CSR. For regulators, the results advise policymakers to restrict managerial ownership and promote institutional investments to improve CSR. For managers, the results suggest developing more sophisticated intervention mechanisms to deal with conflicting voices that could result from different owners’ attitudes toward CSR. As an extension to this research, further study can examine the impact of audit quality on CSR. Originality/value This study proposes the establishment of dynamic links between ownership structure and CSR around firm financial performance. In addition, it investigates not only the overall CSR ratings but also each of CSR pillars, namely, environmental, social and governance.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The impact of ownership structure on corporate social responsibility: the moderating role of financial performance

Dakhli

2021

SBR

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“…Family ownership is used as the moderating variable in the study. It was measured using a dummy variable (R.L, 2021; Yeon et al , 2021) and is taken at the value “1” if family ownership exceeds 20%, and if the family ownership is less than 20%, it is taken as “0” (Lodh et al , 2014). The cut-off of 20% for identifying family-owned firms was kept as it is considered the standard cut-off rate that captures the ownership dispersion as determined by prior studies (Sarkar, 2010; Villalonga and Amit, 2006).…”

Section: Methodsmentioning

confidence: 99%

Corporate social responsibility expenditure and financial performance: the moderating role of family ownership

Kaimal,

Uzma

2023

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Purpose The paper aims to examine how Indian non-financial service sector companies’ financial performance is influenced by their corporate social responsibility (CSR) expenditures. The paper also analyses whether family ownership has a moderating role in the CSR expenditure–financial performance association. Design/methodology/approach The study includes 288 non-financial service sector companies listed in India with 3,456 firm-year observations. Panel data regression analysis using data for 12 years, starting from 2010 to 2021, is carried out. Findings The study reveals a positive influence of CSR spending on financial performance measures (Tobin’s Q and return on assets). Mandatory CSR policies also influence the company’s performance. Additionally, family ownership has a positive moderating effect on CSR expenditure–financial performance (Tobin’s Q). Research limitations/implications The study gives insights to the managers on how CSR expenditures can be used to maximise their benefits by supporting social causes, particularly in the case of firms with ownership structures where family involvement is there. Originality/value The prior studies analysing family ownership effect on the CSR–financial performance relationship are fewer, and in a country like India, where corporate philanthropy is a part of the family business culture, there is a need to understand how CSR spending influences firm performance.

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“…RMI: Import of raw material often occurs owing to the lack of technological capability at the disposal of the firm. Consequently, those firms which have a sustainable innovative capability do not need to rely on the import of raw materials, given their in-house R&D capability (Manogna et al , 2021). …”

Section: Data and Research Methodologymentioning

confidence: 99%

Does investment in innovation impact firm performance in emerging economies? An empirical investigation of the Indian food and agricultural manufacturing industry

Manogna

Mishra

2021

IJIS

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Purpose The study aims to analyze the impact of Research & Development (R&D) intensity on the firm’s performance, measured by growth of sales in the emerging market like India. Innovation strategy and its outcomes for firms may be different in developing countries as compared to developed countries. Thus, a study that focuses on the emerging economy like India, with a majority of the population dependent on agriculture, is of prime importance to the firm performance in the food and agricultural manufacturing industry. For this study, the broader focus will be on one widely recognised factor which may influence the growth rate of firms, i.e. investment in innovations which is in terms of R&D expenditure. Design/methodology/approach The paper investigates the relationship between the R&D efforts and growth of firms in the Indian food and agricultural manufacturing industry during 2001–2019. To empirically test the relationship between firm’s growth (FG) and R&D investments, system generalised method of moments technique has been used, hence enabling to avoid problems related to endogeneity and simultaneity. Findings The findings reveal that investments in innovations have a positive effect on the growth of firms in the Indian food and agricultural manufacturing industry. Investment in R&D also enables the firms to reap benefits from externalities present in the industry. Further analysis reveals that younger firms grow faster when they invest in R&D. More specifically, this paper finds evidence in the case of the food and agricultural industry that import of raw materials negatively affects the FG and export intensity positively affects the growth in the case of R&D firms. Research limitations/implications This study suggests that the government should encourage the industries to invest optimally in R&D projects by providing favourable fiscal treatments and R&D subsidies which are observed to have positive effects in various developed countries. Originality/value To the best of the author’s knowledge, the current paper is the first to analyse the impact of innovation in food and agricultural industry on firm’s performance in an emerging economy context with the latest data. This paper agrees that a government initiative to increase private R&D expenditure would have favourable effects on FG as growing investments in R&D lead to further growth of the firms.

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Ownership structure and corporate social responsibility in India: empirical investigation of an emerging market

Cited by 31 publications

References 75 publications

The impact of ownership structure on corporate social responsibility: the moderating role of financial performance

The impact of ownership structure on corporate social responsibility: the moderating role of financial performance

Corporate social responsibility expenditure and financial performance: the moderating role of family ownership

Does investment in innovation impact firm performance in emerging economies? An empirical investigation of the Indian food and agricultural manufacturing industry

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