Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis

Lins, Karl V.; Servaes, Henri; Tamayo, Ane

doi:10.1111/jofi.12505

Cited by 2,547 publications

(1,381 citation statements)

References 81 publications

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“…On the other hand, Lins et al. () also investigate (in the US stock market setting) whether the financial crisis changed the market impact of CSR and find that high‐CSR firms have crisis period returns significantly higher than those of low‐CSR firms, but no similar return differential is detected before or after the crisis. To conduct a similar examination, we include an additional binary control variable taking the value of 1 for loan facilities starting after Lehman's filing for Chapter 11 bankruptcy on 15 September 2008, and 0 otherwise, and interaction terms between this binary variable and Oekom firm scores.…”

Section: Resultsmentioning

confidence: 99%

“…Alternatively, we also follow Lins et al. () who define the financial crisis as the period between the Lehman Brothers bankruptcy (September 2008) and the point at which the S&P 500 reached its lowest point (March 2009 – after which it started recovering) and split our sample into pre‐crisis and post‐crisis accordingly. We find no moderating effect of the crisis on the link between CSR and cost of loans at the firm level.…”

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confidence: 99%

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The Effects of Corporate and Country Sustainability Characteristics on The Cost of Debt: An International Investigation

Hoepner¹,

Oikonomou²,

Scholtens³

et al. 2016

Business Fin & Account

196

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We investigate the relationship between corporate and country sustainability on the cost of bank loans. We look into 470 loan agreements signed between 2005 and 2012 with borrowers based in 28 different countries across the world and operating in all major industries. Our principal findings reveal that country sustainability, relating to both social and environmental frameworks, has a statistically and economically impactful effect on direct financing of economic activity. An increase of one unit in a country's sustainability score is associated with an average decrease in the cost of debt by 64 basis points. Our international analysis shows that the environmental dimension of a country's institutional framework is approximately twice as impactful as the social dimension, when it comes to determining the cost of corporate loans. On the other hand, we find no conclusive evidence that firm‐level sustainability influences the interest rates charged to borrowing firms by banks. Our main findings survive a battery of robustness tests and additional analyses concerning subsamples, alternative sustainability metrics and the effects of financial crisis.

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Section: Resultsmentioning

confidence: 99%

mentioning

confidence: 99%

The Effects of Corporate and Country Sustainability Characteristics on The Cost of Debt: An International Investigation

Hoepner¹,

Oikonomou²,

Scholtens³

et al. 2016

Business Fin & Account

196

View full text Add to dashboard Cite

show abstract

“…Previous researches investigated that there is a relationship between sustainability and competitive advantage (Lins et al, ) and interdependence between logistics service providers and consumers in terms of sustainability, referred to as “shared responsibility,” which requires mutual support and cooperation. Also, the effects of mismanagement of sustainability issues through company's financial performance (Gür, Ervansel, Er, Caliskan, & Ozturkoglu, ), social and ethical performance (Hitt & Collins, ), and environmental performance (Delmas & Burbano, ) are examined.…”

Section: Introductionmentioning

confidence: 99%

Analysing the importance of sustainability‐oriented service quality in competition environment

Özbekler

Öztürkoğlu

2020

Bus Strat Env

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The logistics sector is one of the most important domains in the service sector in understanding the increasing scale of business activities along with globalization. Due to the nature of the service sector, where competition is increasingly concentrated, the main objective of firms is the creation of their strategy on competitive advantage in regard with knowing the level of quality of the services offered and the firm's image from the customers' point of view. Trying to adapt to the changing conditions of the market drives firms to integrate their competing areas into their sustainability dimensions (economic, social, and environmental) with the aim of increasing their perceived quality through differentiating their business to achieve a sustainable competitive advantage. The aim of this study is to examine the quality level perceived by logistics service providers in terms of triple bottom line approach and to determine the relationship between them for sustainable competition. In line with exploratory methods, factor analysis was used with the aim of finding out a new scale to the literature about the examination of the relationship between quality perception and corporate sustainability in the frame of competition. In this context, data of 120 logistics service providers were collected and analysed. According to the results, the content of the subject consists of nine factors and 29 interrelated subdimensions. As a result of the research, firms have emphasized on the importance of reaching the competition by expanding their quality perceptions within the scope of corporate sustainability in parallel with the increasing customer demands and expectations.

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“…There is a large body of empirical research that supports a positive impact of CSR on firm market valuation and financial performance (e.g. Callan & Thomas, ; Deng, Kang, & Low, ; Ferrell, Liang, & Renneboog, ; Lins, Servaes, & Tamayo, ; Marti, Rovira‐Val, & Drescher, , among others). For instance, Deng et al () show that high CSR acquirers realize higher merger announcement returns and better post‐merger operating performance, and Dimson, Karakaş, and Li () show that better CSR performance is related to larger abnormal stock returns, supporting the positive stakeholder view of CSR.…”

Section: Introductionmentioning

confidence: 99%

Environmental responsibility, market valuation, and firm characteristics: Evidence from China

Junnan

Wang

Xie

2018

Corp Soc Responsibility Env

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Using a large panel of listed firms in China from 2010 to 2015, this study investigates the valuation effect of corporate environmental responsibility (CER) and firm characteristics that influence such an effect. We implement the ordinary least squares and the fixed effects panel regressions as well as the two‐stage least squares regressions that control for potential endogeneity. We find that CER has a significantly positive effect on firm performance. The positive effect is more pronounced for firms in highly polluting industries, with high asset tangibility and with low state ownership. Furthermore, firms with high ownership concentration and low managerial ownership tend to benefit more from their environmentally responsible activities, suggesting that enhanced environmental engagement may serve as a strategic tool in reducing the negative effects of agency cost and weak corporate governance on firm valuation. Our results are robust to alternative measures of performance (Tobin's Q and return on assets).

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Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis

Cited by 2,547 publications

References 81 publications

The Effects of Corporate and Country Sustainability Characteristics on The Cost of Debt: An International Investigation

The Effects of Corporate and Country Sustainability Characteristics on The Cost of Debt: An International Investigation

Analysing the importance of sustainability‐oriented service quality in competition environment

Environmental responsibility, market valuation, and firm characteristics: Evidence from China

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