Role of board indexes on corporate social responsibility (CSR) and shareholders’ wealth

Mohy-ud-Din, Kamran; Raza, Syed Ali

doi:10.1016/j.jclepro.2023.136521

Cited by 12 publications

(6 citation statements)

References 123 publications

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“…Again, similar to the moral motivation for CSR (Graafland & van de Ven, 2006), the payment of dividends to shareholders is also considered to have a moral connotation (Mohy‐ud‐Din & Raxa, 2023). This view was echoed by Keith Skeoch, the Chief Executive Officer (CEO) of Standard Life Aberdeen plc who said, “Companies have a moral imperative to pay dividends to shareholders during the coronavirus pandemic” (Smit, 2020, p. n).…”

Section: Theoretical Framework and Development Of Hypothesismentioning

confidence: 99%

“…Despite the renewed interest in firm stakeholder commitment and shareholder value, the effect of COVID-19 and firm CSR engagement on dividend payment is limited. The extant literature provides some evidence on the relationship between CSR performance (CSRP) and dividend payout (Ellili, 2022;Ni & Zhang, 2019;Verga Matos et al, 2020;Zahid et al, 2023). However, we do not know how this relationship differs in extraordinary times such COVID-19 pandemic.…”

Section: Introductionmentioning

confidence: 98%

“…Thus, a financial conflict may arise between meeting societal needs through CSR initiatives and compensating shareholders with dividend payments. Consistent with this view, recent studies have questioned how the business orientation towards CSR goals affects dividend payouts, but the findings remain divided (Ellili, 2022;Fonseca & Richardson, 2023;Ni & Zhang, 2019;Niccolò et al, 2020;Oh & Park, 2021;Salah & Amar, 2022;Verga Matos et al, 2020;Zahid et al, 2023).…”

Section: Introductionmentioning

confidence: 99%

“…However, recent international orientation towards meeting the needs of various stakeholder groups through corporate social responsibility (CSR) initiatives and addressing global environmental and social problems is causing a shift in business strategy and setting new priorities in corporate goals. While investors and society cherish allocating corporate resources to CSR activities, it poses new challenges and dilemmas for managers (Mohy‐ud‐Din & Raxa, 2023; Zahid et al, 2023). Thus, a financial conflict may arise between meeting societal needs through CSR initiatives and compensating shareholders with dividend payments.…”

Section: Introductionmentioning

confidence: 99%

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Corporate social responsibility and dividend payout policy in extraordinary time: Empirical study of South Africa

Buertey

Ramsawak

Dziwornu

et al. 2023

Corp Soc Responsibility Env

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Corporate social responsibility (CSR) is a strategic tool that firms use to gain competitive advantage and enhance profitability in the long run, yet its effect on dividend payout in extraordinary times is limited. Grounded in stakeholder and dual responsibility theories, this study examines the effect of CSR on the relationship between COVID‐19 and dividend payout. Data from the period 2015–2021 were obtained from 114 non‐financial listed firms on the Johannesburg Stock Exchange, South Africa, and analyzed by multivariate and logit regression techniques. COVID‐19 has a negative effect on the amount and likelihood of dividend payment, while CSR performance has a positive effect on the likelihood and amount of dividend payment. However, the result of the negative effect of COVID‐19 on dividend payment does not differ between high and low CSR performing firms. Conversely, the impact of COVID‐19 and CSR on dividend payment differ between high and low financial constraint firms. Shareholders should learn to manage their expectations of dividends payment during times of crisis like COVID‐19, as firms tend to focus more on addressing the needs of stakeholders through CSR initiatives, which will enhance profit in the long term, rather than paying out dividend to shareholders.

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Section: Theoretical Framework and Development Of Hypothesismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Corporate social responsibility and dividend payout policy in extraordinary time: Empirical study of South Africa

Buertey

Ramsawak

Dziwornu

et al. 2023

Corp Soc Responsibility Env

View full text Add to dashboard Cite

show abstract

“…Emerging economies, such as Jordan, with its rich tapestry of age‐old traditions juxtaposed with evolving business methodologies, present unique challenges, and opportunities due to their distinct institutional frameworks, governance structures, and socio‐economic intricacies. Carroll (1991) posits that board members or managers hailing from diverse cultural backgrounds often bring to the table varied perspectives on CSR, reinforcing the idea that the very interpretation and implementation of CSR activities are deeply influenced by contextual elements unique to each country (Mohy‐ud‐Din & Raza, 2023). Indeed, given these unique elements, boards in Jordan might indeed perceive and act upon CSR initiatives in a manner distinct from their global counterparts, thus making Jordan an ideal setting for an in‐depth exploration of CSR (Eiadat, 2023).…”

Section: Introductionmentioning

confidence: 99%

Exploring the mediating role of corporate social responsibility in the connection between board competence and corporate financial performance amidst global uncertainties

Al Frijat,

Albawwat,

Elamer

2023

Corp Soc Responsibility Env

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Despite the growing literature on corporate social responsibility (CSR), little is known about how the board of directors' competence can affect the CSR‐financial performance relationship during severe uncertainties such as the COVID‐19 outbreak. This paper focuses on exploring the mediating role of CSR in the connection between board competence and corporate financial performance amidst global uncertainties. The sample consists of Jordanian companies listed on the Amman Stock Exchange. Data were analyzed using the partial least square structural equation modeling. The findings show that boards' CSR competence has a direct and indirect positive impact on financial performance. Therefore, boards of directors' CSR competence can be seen as enablers for CSR activities. In this regard, companies could invest more in qualifying board directors to be socially responsible and enhance their role in improving corporate financial performance. This study identifies and provides empirical evidence on a critical enabler of CSR activities (i.e., boards of directors' CSR competence) from a developing country perspective. This, in turn, could widen the management and other stakeholders' understanding of CSR‐enhancing factors and therefore increase its efficiency. We provide theoretical and practical implications to guide regulators and businesses to ensure sustainable development.

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RETRACTED ARTICLE: Developing green logistic services management to achieve sustainable development in Vietnam: the role of green construction practices, green social awareness and green innovation

Chen,

Lee,

Diep

et al. 2023

Environ Sci Pollut Res

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Role of board indexes on corporate social responsibility (CSR) and shareholders’ wealth

Cited by 12 publications

References 123 publications

Corporate social responsibility and dividend payout policy in extraordinary time: Empirical study of South Africa

Corporate social responsibility and dividend payout policy in extraordinary time: Empirical study of South Africa

Exploring the mediating role of corporate social responsibility in the connection between board competence and corporate financial performance amidst global uncertainties

RETRACTED ARTICLE: Developing green logistic services management to achieve sustainable development in Vietnam: the role of green construction practices, green social awareness and green innovation

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