corporate social responsibility and investment efficiencyquirky non specific units of measurement

This statement is defined as a document that outlines the objectives and principles of a business regarding the. ", Olivier J. Blanchard & Florencio Lopez-de-Silane, 1993. Strategic Management Journal, 22(2), 125139. University of Grenoble Alpes, CERAG, CNRS - BP 47, 38040, Grenoble Cedex 9, France, David OBrien Centre for Sustainable Enterprise, Concordia University, 1455 Blvd. Capital-market imperfections and investment. Journal of Financial Economics, 115(2), 304329. (2012) demonstrate that the benefits associated with high CSR disclosure exceed the reduction of information asymmetry and generate a reduction in the cost of equity. Cornell, B., & Shapiro, A. C. (1987). Benlemlih, M. (2015). A proxy for investment efficiency equals capital expenditure deflated by the lagged book value of assets (Chen et al. doi:10.1007/s10551-014-2410-6. Do state and foreign ownership affect investment efficiency? Strategic management: A stakeholder approach. Finally, additional results show that the effect of CSR on investment efficiency is more pronounced during the subprime crisis. Dhaliwal, D. S., Li, O. Journal of Business Ethics, 117(4), 679694. Learn more about Institutional subscriptions. We provide strong and robust evidence that high CSR involvement decreases investment inefficiency and . Hubbard, R. G. (1998). Vance, S. C. (1975). Attig, N., Boubakri, N., El Ghoul, S., & Guedhami, O. Blanchard, O. J., Lopez-de-Silanes, F., & Shleifer, A. These new extra-financial information disclosure rules will be applied to some large companies with more than 500 employees. Corporate environmental responsibility and firm risk. Bnabou, R., & Tirole, J. Article Myers, S. C. (1984). Kytle, B. and Ruggie, J. G. (2005). The paradox of efficiency | Edward Tenner- w/ Evaluation Form; . These new extra-financial information disclosure rules will be applied to some large companies with more than 500 employees. Cookie Settings. International Review of Financial Analysis, Corporate social responsibility and dividend policy, Research in International Business and Finance, Corporate Legitimacy and InvestmentCash Flow Sensitivity, Stakeholder orientation and the value of cash holdings: Evidence from a natural experiment, Corporate environmental performance and financing decisions, Corporate social responsibility and seasoned equity offerings. We also cross-sell the full range of wholesale products and services offered by the Scotiabank Group. (2013). Chen, S., Sun, Z., Tang, S., & Wu, D. (2011b). El Ghoul, S., Guedhami, O., Kwok, C. C. Y., & Mishra, D. R. (2011). 45 Pages (2012). Evidence from international data. Mohammed Benlemlih. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). Finally, additional results show that the effect of CSR on investment efficiency is more pronounced during the subprime crisis. Journal of Business Ethics, 117(4), 679694. The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness, Sample selection bias as a specification error, Sample Selection Bias as a Specification Error, Employee treatment and firm leverage: A test of the stakeholder theory of capital structure, Corporate Social Responsibility and Credit Ratings, Agency, information and corporate investment, Agency, Information and Corporate Investment, The price of sin: The effects of social norms on markets, Corporate Social Responsibility as a Conflict Between Shareholders, Financial reporting quality, debt maturity and investment efficiency, Why Does the Law Matter? ", Galema, Rients & Plantinga, Auke & Scholtens, Bert, 2008. Z., Tsang, A., & Yang, Y. G. (2011). Benefits of Corporate Social Responsibility An effective CSR program can have a positive impact on companies, employees, and consumers. Financial reporting quality and investment efficiency of private firms in emerging markets. The Review of Financial Studies, 22(1), 435480. doi:10.1007/s10551-015-2856-1. Aupperle, K. E., Carroll, A. Bae, K.-H., Kang, J.-K., & Wang, J. Journal of Economic Literature, 36(1), 193225. The human rights score equals the number of strengths minus the number of concerns in the human right issues area, The employee relations score equals the number of strengths minus the number of concerns in the employee relations qualitative issues area, The diversity score equals the number of strengths minus the number of concerns in the diversity qualitative issues area, The community score equals the number of strengths minus the number of concerns in the community qualitative issues area, The product score equals the number of strengths minus the number of concerns in the product qualitative issues area, The environment score equals the number of strengths minus the number of concerns in the environment qualitative issues area, The overall CSR score equals the sum of the human rights, employee relations, diversity, community, product characteristics, and environment qualitative issues areas scores, The total number of strengths of the human rights, employee relations, diversity, community, product characteristics, and environment qualitative issues areas, The total number of concerns of the human rights, employee relations, diversity, community, product characteristics, and environment qualitative issues areas, Natural logarithm of the dollar value of the total book value assets, Standard deviation of cash and short-term investments from, Logarithmic value number of the years between the fiscal year and the Compustat listing year, The ratio of tangible fixed assets to total assets, Standard deviation of return on assets (ROA) from, Market value of equity minus book value of equity plus the book value of assets, all scaled by book value of assets, An index of financial constraints developed by Hadlock and Pierce (, A dummy that takes the value of one if net income before extraordinary items is negative, and zero otherwise, The ratio of the book value of total liabilities and debt scaled by book value of total assets, A dummy variable that takes a value of 1 for years 2007 and 2008 and 0 otherwise, A dummy that takes a value of 1 if the firm is active in one of the two-digit Standard Industrial Classification codes and otherwise, The industry-year average of the overall CSR score, The firm-level initial value of the overall CSR score. Anyone you share the following link with will be able to read this content: Sorry, a shareable link is not currently available for this article. Article ", Bae, Kee-Hong & Kang, Jun-Koo & Wang, Jin, 2011. Journal of Financial Economics, 115(2), 304329. Moreover, our findings suggest that CSR components that are directly related to firms' primary stakeholders (e.g., employees' relations, product characteristics, environment, and diversity) are. Or where a company gives excellent maternal benefits, encouraging family stability. Journal of Financial Economics, 29(2), 315335. Finally, additional results show that the effect of CSR on investment efficiency is more pronounced during the subprime crisis. The price of sin: The effects of social norms on markets. Financial reporting quality, debt maturity and investment efficiency. The mechanism through which CSR increases firms competitive advantages are multiple, namely, firms image, firms reputation, segmentation, and long-term cost saving. Corporate social responsibility (CSR) has never been so important. Bouslah, K., Kryzanowski, L., & MZali, B. Keywords: Corporate social responsibility, Investment efficiency, Stakeholders theory, Suggested Citation: The Journal of Finance, 39(3), 574592. Keywords: Corporate social responsibility, Investment efficiency, Stakeholders theory Cai, L., Cui, J., & Jo, H. (2015). The New York Times Magazine. Journal of Banking & Finance, 35(9), 23882406. Corporate social responsibility and trade credit, Review of Quantitative Finance and Accounting, Mohammed Benlemlih & Mohammad Bitar, 2018. Journal of Business Ethics, 121(4), 559576. 2022 Springer Nature Switzerland AG. ", Lin, Yu-En & Li, Yi-Wen & Cheng, Teng Yuan & Lam, Keith, 2021. Listed below are three nice suggestions that will help you get . Keywords: Corporate Social Responsibility, Corporate Governance, Investment Efficiency ,Emerging Market Taiwan JEL classification: G32, G34, M10, M14, O16 *Associate Professor, Department of Accounting, Ming Chuan University - mingteli@mail.mcu.edu.tw Ming-Te Lee would like to acknowledge the Ministry of Science and Technology of Taiwan for its As in Servaes and Tamayo (2013), we do not believe that corporate governance is a part of CSR. If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. Myers, S. C., & Majluf, N. S. (1984). Business and Society, 36(4), 419429. Corporate social responsibility is an integral component in the execution and conduct of modern business operations. Clarkson, M. B. E. (1995). A stakeholder framework for analyzing and evaluating corporate social performance. Journal of Corporate Finance. Renneboog, L. D. R., Liang, H. and Ferrell, A. Corporate social responsibility performance and information asymmetry. Management Review, 64(8), 1824. Corporate social responsibility and investment efficiency. Leverage, investment, and firm growth. Financial Management, 16(1), 514. Industries with high-skilled employees and low substitutability between labor and capital also exhibit a greater impact of CSR performance on under-investment. This is a four stage process. Individual and corporate social responsibility. Barnea, A., & Rubin, A. We provide strong and robust evidence that high CSR involvement decreases investment inefficiency and consequently increases investment efficiency. (2013). Renneboog, L. D. R., Liang, H. and Ferrell, A. We provide evidence on the moderating effect of business strategy between CSR and over-investment. Corporate social responsibility, investor protection, and earnings management: Some international evidence. Hong, H., & Kacperczyk, M. (2009). The mechanism through which CSR increases firms competitive advantages are multiple, namely, firms image, firms reputation, segmentation, and long-term cost saving. ", Hong, Harrison & Kacperczyk, Marcin, 2009. Both Defend and Prospect strategies can mitigate over-investment by interacting with high CSR firms. Carroll, A. Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. Name. Notably, our results reveal greater sensitivity of under-investment to CSR performance in firms exhibiting lower financial constraints and lower financial slack. Than shareholders an empirical examination of the relationship between corporate social responsibility affect the cost of capital.! 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