Permanency of CSR Activities and Firm Value

Jeong, Kwang Hwa; Woo, Jeong， Seok; Lee, Woo‐Jae; Bae, Seong Ho

doi:10.1007/s10551-016-3273-9

Cited by 47 publications

(33 citation statements)

References 58 publications

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“…In contrast, family firms could cause type II agency problem that controlling families with great decision‐making power expropriate outside stakeholders, including suppliers and minority shareholders, to achieve their noneconomic objectives (Li, Wu, & Song, 2017; Masulis & Reza, 2015; Yu et al, 2019). In South Korea, family firms employ opportunistically controlling mechanism, including pyramiding and cross‐shareholding, to exert greater voting rights over cash‐flow rights on the firms (Jeong, Jeong, Lee, & Bae, 2018; Terlaak et al, 2018). Directors of boards, executives in top management teams, and managers at key positions in general also are appointed by controlling families (Luo & Chung, 2013).…”

Section: Introductionmentioning

confidence: 99%

Doing more and doing better are two different entities: Different patterns of family control and environmental performance

Zeng

Chen

et al. 2020

Bus Strat Env

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Family firms bear two types of agency costs, including type I and type II agency problems, in corporate environmental practices: (1) Outside executives at family firms hesitate to engage in environmental strategies, which can lead to drops in profits; (2) Controlling families employ opportunistically environmental management to achieve their interests. We argue that a primary cause for the agency problems lies on ineffective internal corporate governance at family firms, which can cause loss of managerial (or power) balance between outside executives and family executives. Our findings show that family firms with ownership and strategic control (FSC), which family executives and outside executives monitor and constrain each other, can achieve the highest environmental performance. Moreover, external controls, including product market competition and provincial environmental regulations, substitute effective internal control of FSC. The environmental performance premium of FSC is more prevalent when the production market competition is lower. Family firms with ownership, operational, and strategic control (FOSC) can achieve higher environmental performance within a province with more stringent environmental regulations.

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Section: Introductionmentioning

confidence: 99%

Doing more and doing better are two different entities: Different patterns of family control and environmental performance

Zeng

Chen

et al. 2020

Bus Strat Env

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“…For this purpose, we retrieve CSR scores in various dimensions, reported in MCSI ESG, and construct a CSR index ( CSR_Index ) by following Jo and Na (2012), Baron, Harjoto, and Jo (2011), and Hillman and Keim (2001). Subsequently, we calculate the CSR permanency by following the methodology proposed by Jeong, Jeong, Lee, and Bae (2018). In so doing, we first calculate the CSR industrial mean based on CSR index for each industry for each country.…”

Section: Data and Mthodologymentioning

confidence: 99%

“…In so doing, we first calculate the CSR industrial mean based on CSR index for each industry for each country. Second, following Jeong et al (2018), DeBenedetti (2017), and H. Kim, Hoskisson, and Wan (2004), we create CSR permanency dummy ( CSRPerm ) which takes value 1 if CSR index of a firm is greater than its respective industrial CSR mean for 3 times or more in previous 4 years. We consider minimum three years to determine the firms' CSR permanency as DeBenedetti (2017) and H. Kim et al (2004) explicitly suggest that to determine the consistency and trend of firm's policies and their impact on corporate outcomes, at least preceding three years should be considered.…”

Section: Data and Mthodologymentioning

confidence: 99%

CSR permanency, family ownership, and firm value: Evidence from emerging economies

Noor

Saeed

Baloch

et al. 2020

Corp Soc Responsibility Env

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Prior research suggests that undertaking corporate social responsibility (CSR) activities affect firm value. We extend this line of research by considering CSR activities over a longer period (a consistent CSR behavior) and examine the impact of CSR permanency on firm value. Using a cross‐country sample of 600 top‐listed firms from four leading emerging economies, Brazil, Russia, India, and China (BRIC) over the period 2010–2018, we find that CSR permanency positively impacts firm value after controlling for various firm and country characteristics. This effect is observed more pronounced for family‐owned firms. Additional analysis reveals that permanent CSR activities in both social and environmental dimensions positively influence firm value, however, CSR permanent activities in the social dimension exert a larger impact on firm value. Our results make important contributions to theory and practice.

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“…The 240 remaining firms were then categorized into 15 industries (distribution shown in the second column of Table 1) based on the 2012 China Securities Regulatory Commission industrial classification system. The firms were screened based on the two following criteria: (1) removal of firms in Qinghai and Tibet due to the absence of their data in the Business Environment Index for China's Provinces, and (2) removal of financial firms such as those in the bank and insurance industries due to the particularities of their business operations and financial structures [69]. As a result, a manufacturer who is in Qinghai was removed from the sample, and 33 financial firms were eliminated.…”

Section: Data Sources and Samplementioning

confidence: 99%

Corporate Social Responsibility and Operating Performance: The Role of Local Character in Emerging Economies

Miao

Wong

et al. 2020

Sustainability

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Local character can shape corporate resource accumulation and utilization, especially in emerging economies, and accordingly plays an important role in affecting the performance results of corporate social responsibility (CSR) practices. This paper thus aims to examine how local character affects the performance results of CSR practices. Drawing on the resource dependence theory and resource orchestration view, this study empirically investigates the effects of internal character (in terms of state ownership) and external local character (in terms of eight-dimension infrastructure) on the relationship between CSR and operating performance. Using samples of firms listed in the Chinese CSI 300 (capitalization weighted stock market index) in the years 2012 and 2016 and applying hierarchical multiple regression analysis, this study empirically verifies that CSR has a positive effect on corporate operating performance, and state ownership and infrastructure positively moderate the performance results of CSR efforts. Additionally, the results show that three dimensions (environmental, social, and governance) of CSR practices impact performance differently. Overall, this study unveils the crucial role of the local character on CSR to achieve performance and carries important theoretical and practical implications. Future research should include long panel data to increase statistical power as well as explore the linkage and synergy effect of CSR and governmental social responsibility (GSR).

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Permanency of CSR Activities and Firm Value

Cited by 47 publications

References 58 publications

Doing more and doing better are two different entities: Different patterns of family control and environmental performance

Doing more and doing better are two different entities: Different patterns of family control and environmental performance

CSR permanency, family ownership, and firm value: Evidence from emerging economies

Corporate Social Responsibility and Operating Performance: The Role of Local Character in Emerging Economies

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