The Control–Ownership Wedge and Corporate Social Responsibility

Ryu, Haeyoung; Chae, Soo-Joon; Cho, Moon Kyung

doi:10.17549/gbfr.2017.22.4.15

Cited by 4 publications

(2 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Prior studies examined the impact of corporate governance mechanisms such as board diversity and board independence, foreign ownership as a blockholder, and the controlownership wedge (the difference between voting rights and cash flow rights) on investment in CSR activities [60][61][62]. This study contributes to the existing literature by providing evidence on managerial ownership in a firm's CSR strategy.…”

Section: Discussionmentioning

confidence: 94%

Impact of Managerial Ownership on Corporate Social Responsibility in Korea

Cho

Ryu

2022

Sustainability

View full text Add to dashboard Cite

A firm’s corporate social responsibility (CSR) record improves its image and that of its managers. This ultimately can positively affect enterprise value. However, CSR investments do not necessarily lead to better firm performance, as long-term costs are incurred. Therefore, managers often make CSR investment choices based on personal incentives. This study analyzed the relationship between managerial ownership and CSR activities in Korean public companies based on different managerial CSR incentives and ownership levels. Using the Korean Economic Justice Institute’s CSR index, the results show that firms with higher managerial ownership had excellent CSR records. Higher managerial ownership led to alignment between managers and shareholders, with managers making CSR investments to enhance long-term enterprise value. However, in firms with lower accounting transparency, managers reduced CSR investments. Managers did not value their CSR reputations in firms with poor financial reporting quality and serious information asymmetry. Instead, they diverted CSR resources to other projects to meet their interests. As Korean firms increase their investment in CSR, CSR disclosure responsibility is strengthened. Our study results provide significant implications to academics, practitioners, investors, and other stakeholders, suggesting the importance of corporate ownership structure on investment in CSR.

show abstract

Section: Discussionmentioning

confidence: 94%

Impact of Managerial Ownership on Corporate Social Responsibility in Korea

Cho

Ryu

2022

Sustainability

View full text Add to dashboard Cite

show abstract

“…In 1946, 93.5% of business executives surveyed by Fortune agreed that businesspeople should have social consciousness (Bowen, 1953;Carroll, 1999). Given its significance, corporate social responsibility (hereafter CSR) has received increased attention and shown substantial development in literature on management in recent decades (e.g., Holcomb, Upchurch, Okumus, 2007;Ryu, Chae, & Cho, 2017). Due to the inherent biases of defining a social construct, however, no universally accepted definition of CSR is available (Dahlsrud, 2008;McWilliams & Siegel, 2001).…”

Section: ⅰ Introductionmentioning

confidence: 99%

Effects of Corporate Social Performance on Corporate Financial Performance: A Two-sector Analysis between the U.S. Hospitality and Manufacturing Companies

Ding¹,

Yang²,

Chung³

2018

Glob Bus Financ Rev

View full text Add to dashboard Cite

This study aimed to compare the commonalities and differences of corporate social performance among a sample of U.S. hospitality and manufacturing companies, as well as to examine the impacts of corporate social performance on corporate financial performance in both industries. Using panel data from 1991 to 2013, the study primarily investigated significant differences in the environment, corporate governance, and diversity-related performance among companies in the sample. Among the results, the performance of employee relations and corporate governance was positively associated with short-and long-term financial performance among the hospitality companies. However, the community performance tended to influence the short-term financial performance and employee relations tended to influence the long-term financial performance of the manufacturing companies. The results clarify the complex correlations of corporate social performance and financial performance for hospitality researchers, as well as encourage hospitality practitioners to invest efficiently in improving the corporate social performance and thus corporate financial performance of their firms.

show abstract

South Korea’s Transformation into an Imperialist Power

Pröbsting¹

2021

International Critical Thought

View full text Add to dashboard Cite

The Control–Ownership Wedge and Corporate Social Responsibility

Cited by 4 publications

References 37 publications

Impact of Managerial Ownership on Corporate Social Responsibility in Korea

Impact of Managerial Ownership on Corporate Social Responsibility in Korea

Effects of Corporate Social Performance on Corporate Financial Performance: A Two-sector Analysis between the U.S. Hospitality and Manufacturing Companies

South Korea’s Transformation into an Imperialist Power

Contact Info

Product

Resources

About