Firm CSR Research Articles

A Domino Effect of Firm CSR Across Multi-Stakeholders: Evidence from China’s Resource Tax Reform

A Domino Effect of Firm CSR Across Multi-Stakeholders: Evidence from China’s Resource Tax Reform

Investing with Purpose: The Role of CSR in Enhancing Chinese Firms’ Performance in Japan

Investing with Purpose: The Role of CSR in Enhancing Chinese Firms’ Performance in Japan

The EFFECT OF DIVIDEND POLICY AND PROFITABILITY ON FIRM VALUE WITH CORPORATE SOCIAL RESPONSIBILITY AS A MEDIATOR

Purpose: This study aims to examine the direct effect and indirect effect between Dividend Policy, Profitability, and CSR on Firm Value. The sample in this study is a consumer non-cyclicals company listed on the Indonesia Stock Exchange from 2019 to 2021 which uses purposive sampling, namely companies that pay dividends. The sample obtained was 152 companies
 Design/methodology/approach : The analysis technique used is the regression analysis and path analysis
 Findings: The results of this study indicate that: (1) Dividend Policy not affect Firm Value , CSR and Profitability affect Firm Value, (2) CSR is able to mediate the effect of Dividend Policy on Firm Value, (3) CSR is unable to mediate the effect of Profitability on Firm Value. Future researchers are expected to use all companies listed on the Indonesian stock exchange so that it is easier to get the complete data information needed because it is more widespread not only focusing on one sector.
 Research limitations/implications: The implication of the results of this study is as a basis for company policy in assessing the performance of the company. Where when the company is consistent in distributing dividends, the company's value will be high, this is also supported by the profitability of the company. In addition, the CSR factor carried out by the company can certainly also increase the value of the company Where when the company is consistent in distributing dividends, the company's value will be high, this is also supported by the profitability of the company. In addition, the CSR factor carried out by the company can certainly also increase the value of the company. The more CSR that is done, the better the company's performance.
 Originality/value: This research is original
 Paper type: Research paper

THE INFLUENCE OF FINANCIAL RATIOS ON FIRM VALUE WITH THE CSR MODERATING VARIABLE: LQ45 COMPANIES

Economic conditions during the Covid-19 pandemic experienced a significant decline in all countries of the world, including Indonesia. Therefore, in preparing this thesis, it was discovered that the author wanted to observe all companies registered in LQ45 regarding efforts to increase firm value, especially when facing the Covid-19 pandemic in Indonesia. This research samples using companies that listed on IDX where operate in the LQ45 index during 2017-2021. This research is using panel regression method as the data analysis method. The research conducted shows that the independent variables liquidity, leverage and profitability have a significant positive effect on firm value, while the independent variables firm size and CSR have no significant effect on the dependent variable firm value.

The impact of suppliers' CSR controversies on buyers' market value: The moderating role of social capital

A firm's CSR controversies can affect not only the firm itself but also its supply chain partners. However, existing studies have predominantly focused on the influence of a firm's own CSR controversies; the spillover effect along supply chains has received insufficient attention. This study examines the impact of suppliers' CSR controversies on buyers' market value, as well as the moderating role of buyers' social capital. Using data from 462 buyer-supplier dyads of Chinese listed firms from 2008 to 2019, we find that suppliers' CSR controversies are significantly negatively related to buyers' market value, and that environmental controversies have a stronger negative effect than social controversies. This negative association can be alleviated by buyers' social capital in the forms of political, business, and financial capital. Our study has significant implications for both research and practice in the increasingly important domain of CSR management in supply chains.

Strategic CSR in Family Firms

Strategic CSR in Family Firms

THE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY (CSR) BY DHL AND SF-EXPRESS: A COMPARATIVE ANALYSIS IN GERMANY AND CHINA

The main objective of this article is to conduct a literature review on the concept of CSR and to evaluate its implementation in large business operators by analyzing and comparing descriptive statistics. The analysis is conducted using secondary data shared by the chosen business operators. The businesses chosen as cases are two large courier companies: DHL in Germany and SF-Express in China. Statistical tools are utilized in data analysis. The study has significant value for presenting the effectiveness of the practice of CSR in similar firms. The article also provides a comprehensive literature overview of the concept of CSR.

Does Ethical Leadership Contribute towards Organizational Commitment? A Mediational Study of Employees in Hotel Industry

Purpose: This study assesses how perceived corporate social responsibility by employees’ functions as a mediator between organizational commitment and moral leadership.
 Design/Methodology/Approach: According to the social exchange theory, there is reciprocation between an employee and their employer, and how an employer conducts business shapes the perspective of its employees. Employees follow the same activities and behaviors that the corporation does. 348 front-line hotel employees in Pakistan provided the information. To test the data, structural equation modeling was used.
 Findings: The findings show that a leader's moral and ethical behavior influences how employees view a firm's CSR and how committed they are to the organization. Results exhibit that when workers witness their supervisors performing ethically, it affects their attitudes and makes them more dedicated to their businesses.
 Implications/Originality/Value: The study is distinctive in that by utilizing employee views of CSR as a mediator, the relationship between leadership and commitment was explored. The study has essential management and organizational ramifications, particularly for increasing employee engagement.

Blessing or curse? The link between firm CSR practices and leaders’ unethical decisions: The mediating role of moral cognition

Blessing or curse? The link between firm CSR practices and leaders’ unethical decisions: The mediating role of moral cognition

THE EFFECT OF COMPANY SIZE, LEVERAGE, CSR COSTS AND PROFITABILITY ON COMPANY VALUE

This study aims to examine the effect of firm size, leverage, CSR costs and profitability on firm value. The sampling technique used in this study was purposive sampling. The number of samples in this study were 33 manufacturing companies listed on the Indonesia Stock Exchange for 2017-2021. The analysis technique used is multiple linear regression analysis. The results of the study show that firm size, leverage, CSR costs have no significant effect on firm value, while profitability has a significant positive effect on firm value. Keywords: company size, CSR costs, profitability, firm value

CSR in domestic and foreign SMEs in Kenya: on the relationship between the SME manager’s values, emotional commitment to long-term socio-economic development and the firm's CSR practices

PurposeCorporate social responsibility (CSR) remains a prevalent topic for businesses worldwide, especially for those operating in developing countries. The attention on small and medium-sized enterprises' (SMEs') CSR engagement in developing countries has been neglected, although SMEs play a vital role in socio-economic development in African countries like Kenya. This paper aims to conceptualize the relationship between the SME manager's values, ethics, emotional commitment to long-term socio-economic development and the firm's CSR practices.Design/methodology/approachThe authors conducted seven semi-structured interviews with Kenyan and German SMEs located in Nairobi. A deductive-inductive analysis approach was chosen, confirming previous findings and contributing new ideas to the International Business (IB) literature.FindingsThis paper develops a concept linking the values and beliefs of the SME manager with the firm's CSR practices in developing countries via the manager's emotional commitment to local long-term socio-economic development. The Kenyan managers tend to show a higher degree of emotional commitment, which the authors explain by two drivers: (1) philanthropic, self-motivated driver and (2) expectation-based, environment-motivated driver. The authors' findings add to the literature on SMEs' CSR engagement in developing countries by looking at the individual level of analysis.Originality/valueThis paper develops a concept linking the values and beliefs of the SME manager with the firm's CSR practices in developing countries.

Sustaining firm sustainability endeavors: The role of international diversification on firm CSR capability

CSR's role in the international business context has been widely noted. Yet, how firms' cross-border strategies influence firm CSR capability is largely absent in the literature. Our study examines how firm international diversification, as reflected by breadth and depth, affects CSR capability. These relationships are further built into a contingency-based model incorporating the market dynamism and competition intensity. We collect a large dataset with 6069 firm-year observations range from year 2000–2015, and we employ multiple robust methods including Newey-West robust regression and Driscoll-Kraay robust regression to estimate the model. The results demonstrate the significant driving role of international diversification on CSR capability, although diminishing return effects exist in the contingencies. Also, this relationship becomes stronger in more dynamic and more competitive environments. Our research provides unique contributions to the stakeholder theories, strategic CSR theories, dynamic capability view, and international business literature.

CSR Fraud and Consumer Opinions: What Simulated “tweets” Can Explain about Consumer Beliefs in CSR

This research examines what companies can learn from consumer statements made about them over social media, specifically, how the valence (positive or negative statements) and tweet character (emotional or rational statements) of consumer statements coupled with the type of CSR/CSR related fraud impacts consumers’ beliefs about firm CSR use as well as firm confidence. This was conducted via an experimental design manipulating the type of CSR used and related fraud, and then participants responded to the events via simulated tweets and responded to questions about their beliefs in firms engaging in CSR as well as their overall confidence in a firm. Through applying how individuals assess moral judgments via ethical philosophies (idealism vs. relativism) and how those apply to the types of “tweets” made (emotional vs. rational), it was found that the valence and character of a tweet coupled with the CSR type and the related CSR fraud can be used to understand CSR beliefs and confidence in the firm. Additionally, it was found that tweet valence (positive or negative) moderated by the tweet character (emotional vs. rational) impacts the beliefs that firms should engage in CSR. In certain instances, some consumers will not like that a firm engages in CSR, therefore, after a fraud and related negative buzz, it is recommended that firms withhold broadcasting their CSR activities.

CEO turnover, stakeholder management, and dynamics between corporate social responsibility and firm performance

AbstractFocusing on the CEO transition period, this paper documents that the variation of CSR is highly associated with the fluctuation of firm performance. Moreover, it is found that the strong association is undermined for the CEO transition period during which ample variations of value relevant firm policies take place. Furthermore, the empirical evidence suggests that CEOs whose predecessors relinquish power involuntarily are more likely to adjust CSR activities for the purpose of optimal stakeholder management. The paper presents a heuristic and parsimonious model to guide the empirical investigation and conducts a system of simultaneous equations to ameliorate the endogenous nexus of firm performance, CEO turnover and CSR adjustment. The results are also robust to a battery of additional checks.

Employee reactions to perceived CSR: The influence of the ethical environment on OCB engagement and individual performance

In recent years, expectations of firm CSR engagement have increased, as has the nature of employee perceptions and reactions to CSR engagement. In this study, we develop and test a moderated mediation model focusing on employee perceived CSR and its conditional indirect effect on individual performance via organizational citizenship behaviors (OCBs) within an organization with a more or less ethical environment. Drawing on social identity theory and social exchange theory, we argue that when employees perceive their firms as being socially responsible, they are more likely to engage in OCBs, ultimately resulting in increased individual performance. Additionally, drawing on signaling theory, this process is strengthened when it occurs in an organization with a more, as opposed to less, ethical environment. Utilizing a large multi-source and multi-industry sample, we test our hypotheses by employing a latent moderated mediation technique and find strong support for this model.

Does internal whistleblowing build more socially responsible firms？

We examine the impact of internal whistleblowing on firms' CSR performance. We find that establishing internal whistleblowing poses a significantly positive impact on firms' CSR performance. To alleviate endogenous problems, we implement the instrumental variable regression and propensity score matching methods.Furthermore, we find that the effect of internal whistleblowing on firms' CSR performance is more pronounced in firms with fewer financial constraints or own higher profitability, firms with less institutional shareholding and less analyst following, and firms located in provinces with a greater cultural atmosphere of egalitarianism and humanism. Finally, we further provide evidence that a positive effect of internal whistleblowing on firms' profit and market value is stronger among the more socially responsible firms. Our paper is the first to explore the link between the monitoring role of employees and firms' CSR, contributing to the growing literature on whether and how employees impact a firm's CSR performance.

The Impact Of CSR, Institutional Ownership, Tax Avoidance, And Leverage On Firm Value That Moderated By Profitability

This study aims to identify the impact of influence CSR, Institutional Ownership, Tax Avoidance, Leverage and Profitability on Firm Value as well as Profitability to be moderated variable. This study used annual report and financial statement from website IDX and each firm that use in this study. Total sample of this study is 60 that consist of 12 firm property, real estate, and building construction listing on IDX 2017 until 2021. This study used regression data panel and Moderated Regression Analysis (MRA). The results indicated that Institutional Ownership, Leverage, and Profitability has impact on firm value meanwhile CSR and Tax Avoidance does not has impact on firm value. In moderating, Profitability can increase the effect of Institutional Ownership on Firm Value and can reduce the effect of Tax Avoidance and Leverage on Firm Value. However, Profitability cannot moderate CSR on Company Value. In this study there is still a research gap. The limitations of this study only use samples of property, real estate and building construction.

Does investment stimulate or inhibit CSR transparency? The moderating role of CSR committee, board monitoring and CEO duality

This study examined the potential relationship between different facets of firm investment (i.e., sales growth, R&D intensity, and total tangible and intangible assets) and CSR reporting, assurance and GRI adoption. Also, it further explored the conditions under which investing firms can encourage or discourage their CSR transparency. Our sample included 44,996 firm-year observations from 2004 to 2019 across 61 countries. Using a random-effects logistic model, our results indicate that corporate investments reduce firms’ CSR reporting and assurance tendency, which implies that a tradeoff exists between these two aspects of firm investment worldwide. Our moderation analysis outlined the contingent role of board-specific characteristics in the link between firm investment and CSR transparency. It appears that the CSR committee generates greater moderating effects on the firm investment–CSR transparency nexus than board monitoring and CEO duality. This empirical evidence also suggests several practical implications and future research agendas.

Investment Decision and Firm Value: Moderating Effects of Corporate Social Responsibility and Profitability of Non-Financial Sector Companies on the Indonesia Stock Exchange

This study focused on increasing firm value through CSR- and profitability-moderated investment decisions in emerging markets. A panel data analysis method was used for this study with a total of 215 observations of non-financial sector companies on the Indonesian Stock Exchange from 2018 to 2020. The results of the Chow test and the Hausman test showed that the fixed effect model with GLS was the most feasible. The model showed that there was a negative effect of investment decisions on firm value and the role of CSR and profitability strengthened this effect. Based on the results of the robustness check, the research model remained consistent with the results of previous studies. Investment decisions have a negative effect on firm value, and CSR and profitability moderate this effect, either when using other control variables or when using a different estimation model, which in this case was quantile regression. Our findings provide an understanding of the fact that investment decisions are important financial decisions for companies and that they can be controlled through good fund management and risk management.

The Impact of Management Succession on Corporate Social Responsibility of Chinese Family Firms: The Moderating Effects of Managerial Economic Motivations

Because the establishment of private enterprises has been allowed by the Chinese government since the 1980s, management successions have occurred in a large number of Chinese family firms in recent years. Grounded in upper echelons theory and considering the generational differences between founders and successors, it is expected that the initiation of a within-family succession will lead to significant changes in firms’ CSR strategies. Applying the difference-in-difference method, the results suggest that family firms having initiated successions have better CSR performance relative to those that have not initiated successions and succession firms prior to the initiation of successions. The paper further finds that not all post-succession family firms demonstrate homogeneity in terms of CSR. The impact of succession on firms’ CSR is more pronounced for succession family firms with debt financing plans and politically connected successors. This paper contributes to the manager-effect literature, family firm CSR research and management succession studies, and it is also useful to policy makers of Chinese government.