Stakeholders and the stock price crash risk: What matters in corporate social performance?

Dumitrescu, Ariadna; Zakriya, Mohammed

doi:10.1016/j.jcorpfin.2020.101871

Cited by 81 publications

(27 citation statements)

References 65 publications

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“…In certain cases, even if they are not participating in earnings management on purpose, managers are under pressure from shareholders who are focused on the short-termism. The positive impact of firm performance on stock price crash risk is demonstrated as a result of this as well [9,10,12,17,26,27,53,54].…”

Section: Firm Performance and Stock Price Crash Riskmentioning

confidence: 68%

“…Previous research focused mostly on the financial element of stock price crash risk [1][2][3]8,12,17,27]. Due to the restricted regulatory framework in developing markets, it is vital to examine the non-financial part of stock price crash risk.…”

Section: Analytical Framework and Research Hypothesismentioning

confidence: 99%

“…Extant studies tend to rely on Management Balance Theory and Social Impact Theory to examine the link between CSR disclosure and firm risk [7,8,10,12,17,28].…”

Section: Csr Disclosure and Stock Price Crash Riskmentioning

confidence: 99%

“…The impact of CSR disclosure on stock price crash risk is not simply positive or negative but also complicated, and some researchers deem it inconclusive [11,13] or not merely a straight linear relationship [8][9][10]12,[15][16][17].…”

Section: Mediating Role Of Firm Performancementioning

confidence: 99%

“…Notably, the impact of CSR disclosure on stock price crash risk is not simple, but rather complicated, due to regulatory effects [7][8][9]15,16], indirect effects [10], nonlinear effects [12], unclear effects [11], or causality-related issues [17]. Previous studies suggest that the effect of CSR disclosure on crash risk could be mediated by firm performance.…”

Section: Introductionmentioning

confidence: 99%

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From Corporate Social Responsibility to Stock Price Crash Risk: Modelling the Mediating Role of Firm Performance in an Emerging Market

et al. 2021

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The literature on the link between corporate social responsibility (CSR) disclosure and stock price crash risk suggests that it is far more complicated than a plain one-to-one relationship. In this study, we examine how CSR disclosure affects the stock price crash risk and whether firm performance acts as a mediating variable in this relationship. The CSR disclosure index is built using the content analysis technique and the GRI criteria. We choose 225 businesses in Vietnam, comprising 159 firms listed on HOSE and 66 firms listed on HNX. Using the techniques of OLS, LOGIT, GMM, and the Sobel test and replacing different measures of dependent and mediator variable to enhance the robustness of our findings, we reach two important results. To begin with, CSR disclosure has a negative influence on the stock price crash risk of Vietnam’s listed firms. Second, in the aforementioned relationship, firm performance serves as an intermediate. Our results imply that listed firms should engage in CSR practices and disclosure in order to raise the firm’s performance and lower the stock price crash risk.

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Section: Firm Performance and Stock Price Crash Riskmentioning

confidence: 68%

Section: Analytical Framework and Research Hypothesismentioning

confidence: 99%

“…Extant studies tend to rely on Management Balance Theory and Social Impact Theory to examine the link between CSR disclosure and firm risk [7,8,10,12,17,28].…”

Section: Csr Disclosure and Stock Price Crash Riskmentioning

confidence: 99%

Section: Mediating Role Of Firm Performancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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From Corporate Social Responsibility to Stock Price Crash Risk: Modelling the Mediating Role of Firm Performance in an Emerging Market

et al. 2021

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Corporate social responsibility, family involvement, and stock price crash risk

Yang

Wang

Bai

2022

Corp Soc Responsibility Env

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This study responds to the call in Vazquez's (2018) by providing more empirical evidence on ethical issues in family business. Drawing from the agency theory, we provide new evidence about the "CSRstock price crash risk" nexus by examining the moderating effect of family involvement. With a focus on the Chinese capital market, we find that corporate social responsibility (CSR) negatively affects stock price crash risk. Such negative correlation is stronger for family firms as compared with nonfamily firms. Three proxies of family involvement, termly family member as a CEO, lower proportion of variable compensation to CEO, and greater family control, can strengthen the alleviating effect of CSR on crash risk. Nevertheless, a secondgeneration successor as executive does not exert any moderating effect. Our findings advance the comprehension of the "CSR-crash risk" nexus from the family business viewpoint and emphasize the important role of CSR in stabilizing the stock market.

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Do responsible practices lead to higher firm productivity? Evidence from Europe

Piserà,

Gandullia,

Girardone

2024

Int. J Fin Econ

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This study examines the impact of corporate social responsibility (CSR) in its environmental, social and governance (ESG) dimensions on firm productivity. We analyze a data set comprising 448 non‐financial firms operating in 15 European countries during the period 2002–2018 and find compelling evidence indicating that both the overall ESG scores and their individual sub‐pillars, are positively associated with total factor productivity (TFP). To ensure the robustness of our findings, we employ multiple analytical approaches to address potential endogeneity and selection biases. Our evidence demonstrates that the link between ESG and TFP link becomes more pronounced during economic slowdowns, particularly in the aftermath of the financial crisis. Furthermore, our investigation reveals that firms' environmental performance plays a pivotal role in driving this relationship. To validate this outcome, we employ a quasi‐natural experiment, focused on the adoption of the international climate change treaty, the 2015 ‘Paris Agreement’. Overall, our results offer valuable insights for policymakers and regulators and confirm that involvement in sustainability practices within the non‐financial sector not only yields societal benefits but also bolsters firm‐level productivity.

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Stakeholders and the stock price crash risk: What matters in corporate social performance?

Cited by 81 publications

References 65 publications

From Corporate Social Responsibility to Stock Price Crash Risk: Modelling the Mediating Role of Firm Performance in an Emerging Market

From Corporate Social Responsibility to Stock Price Crash Risk: Modelling the Mediating Role of Firm Performance in an Emerging Market

Corporate social responsibility, family involvement, and stock price crash risk

Do responsible practices lead to higher firm productivity? Evidence from Europe

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