Using CSR to mitigate information asymmetry in the banking sector

Semenescu, Andreea; Curmei, Cătălin Valeriu

doi:10.1515/mmcks-2015-0021

Cited by 19 publications

(22 citation statements)

References 26 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This research mostly has been descriptive. The other streams of research are exploring the effect of CSR disclosures on the market value or the results of banks (Soana, 2011; Wu and Shen, 2013; Shen et al , 2016) and the power of CSR to reduce information asymmetry in the banking sector (Semenescu and Curmei, 2015) or banks’ cost of capital (Suto and Takehara, 2018). Research on defining the determinants of CSR disclosures in the banking sector also has been carried out.…”

Section: Csr Disclosures In the Banking Sectormentioning

confidence: 99%

The impact of corporate governance characteristics on banks’ corporate social responsibility disclosure

Matuszak

Różańska

Macuda

2019

JAEE

View full text Add to dashboard Cite

Purpose The purpose of this paper is to investigate the extent and trend of corporate social responsibility (CSR) reporting in commercial banks in Poland and examine the link between corporate governance characteristics, namely size of the bank, ownership, boards size, board diversity and CSR disclosures in the banks. Design/methodology/approach The annual reports and CSR reports of the banks were examined between 2008 and 2015 using content analysis and panel data analysis. Findings The results indicate that banks improved their CSR reporting practices during examined period. There are statistically significant differences in the level of CSR disclosures between banks with a different ownership structure. Both foreign majority shareholder group as well as state majority shareholder group have a positive influence on CSR as compared with Polish majority shareholder (PMS) group (excluding State). Moreover, being listed on stock exchange has a positive influence on CSR as compared with not being listed. Further, the results also revealed that there is a significant positive effect of almost all variables related to the management board, namely, size, female board leadership and foreign board members on CSR disclosure, whereas all supervisory board variables and all considered ownership variables have no statistically significant impact on CSR disclosure. Originality/value This research contributes to the existing literature because the banking sector is often excluded from CSR studies due to its specific legal regulations and seemingly little environmental impact. Moreover, there are only few studies analysing the effect of boards characteristics on the banks CSR disclosure, especially in emerging countries. This study is also the first of this kind focusing on the two-tier system. Furthermore, the study provides the instrument to measure CSR in the banking industry. Finally, the research stresses the crucial implications for banking sector, shareholders and regulatory bodies.

show abstract

Section: Csr Disclosures In the Banking Sectormentioning

confidence: 99%

The impact of corporate governance characteristics on banks’ corporate social responsibility disclosure

Matuszak

Różańska

Macuda

2019

JAEE

View full text Add to dashboard Cite

show abstract

“…Continuity in dividend payments is considered a positive indicator not only for the shareholders but also for other stakeholders. CSR policy is positively associated with a greater dividend payout ratio [105]. This study uses dividends per share to assure CSR of organizations toward their shareholders under the assumption that the distribution of dividends informs the shareholders about the financial conditions of an organization.…”

Section: Literature Review and Theoretical Backgroundmentioning

confidence: 99%

Moderating role of financial ratios in corporate social responsibility disclosure and firm value

Naseem¹,

Lin²,

Rehman³

et al. 2019

PLoS ONE

View full text Add to dashboard Cite

This study investigates the link between corporate social responsibility (CSR) disclosure for multi-stakeholders and financial performance of a firm through accounting-based activities for CSR. A dataset of Chinese non-financial firms listed on the Shanghai Stock Exchange from 2008 to 2012 is taken from the China Stock Market & Accounting Research database. The study compares different financial ratios of CSR disclosure and non-disclosure firms. Moreover, the financial ratios of CSR disclosure firms also compare with the industry averages. The results suggest that the financial of CSR disclosure firms are better than both CSR non-disclosure firms and industry averages. These financial ratios ensure the claim of a firm that they are socially responsible toward multi-stakeholders. Further, the same financial ratios are used as moderator variables between CSR disclosure for multi-stakeholders (independent variable) and firm financial performance (dependent variable). The relationship between CSR disclosure and firm value is moderated by the financial ratios. The moderation effect of financial ratios is rarely used in the literature of CSR disclosure and firm value.

show abstract

“…With regard to CSR issues, Semenescu and Curmei () report that investors prefer financial entities that implement CSR practices, because they consider CSR activities as a relevant tool for alleviating information asymmetries. In this line, Bose, Khan, Rashid, and Islam () demonstrate that institutional ownership is positively associated with the disclosure of green information by the banking industry, because financial entities intend to provide more CSR information in order to reduce agency costs, such as information asymmetries between themselves and investors.…”

Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

The contribution of financial entities to the sustainable development through the reporting of corporate social responsibility information

Pucheta‐Martínez

Bel‐Oms

Nekhili

2018

Sustainable Development

View full text Add to dashboard Cite

This paper aims at examining the relationship between the board composition and corporate social responsibility (CSR) of a sample of listed financial entities, discussing the reasons driving these entities to disclose CSR information. We hypothesise that there is a positive association between outside (institutional and independent directors) and female directors and CSR disclosure, and a negative relationship between inside directors and CSR reporting. Our findings provide evidence that the presence of independent directors and female directors on boards promotes CSR disclosure. Moreover, the results also show that the presence of inside directors and institutional directors on boards does not have an influence on CSR reporting.Thus, our evidence suggests that board attributes, such as the presence of independent and female directors, encourage financial entities to report CSR matters, showing the effectiveness of these two corporate governance mechanisms. The paper sheds light on the influence of the board structure of financial entities on CSR disclosure.Therefore, this study contributes to past research by providing an index for measuring the CSR disclosure of financial entities and the importance of the distinction between outside and inside directors.

show abstract

Using CSR to mitigate information asymmetry in the banking sector

Cited by 19 publications

References 26 publications

The impact of corporate governance characteristics on banks’ corporate social responsibility disclosure

The impact of corporate governance characteristics on banks’ corporate social responsibility disclosure

Moderating role of financial ratios in corporate social responsibility disclosure and firm value

The contribution of financial entities to the sustainable development through the reporting of corporate social responsibility information

Contact Info

Product

Resources

About