scholarly journals Playing on Two Chessboards: Reputation Effects between Corporate Social Responsibility (CSR) and Corporate Political Activity (CPA)

2013 ◽  
Vol 51 (5) ◽  
pp. 790-813 ◽  
Author(s):  
Frank den Hond ◽  
Kathleen A. Rehbein ◽  
Frank G. A. de Bakker ◽  
Hilde Kooijmans-van Lankveld
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Reputation Effects ◽  
Corporate Social

Nonmarket Responses to Regulation: A Signaling Theory Approach

2020 ◽  
Vol 45 (6) ◽  
pp. 865-891
Author(s):  
Lee Warren Brown ◽  
Irene Goll ◽  
Abdul A. Rasheed ◽  
Wayne S. Crawford
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Signaling Theory ◽  
Political Activity ◽  
Theory Approach ◽  
Federal Regulations ◽  
Corporate Political Activity ◽  
The Us ◽  
Regulatory Intensity ◽  
Corporate Social

We examine how regulatory intensity and increases in regulation affect the nonmarket activities of firms. Using a signaling theory perspective, we seek to better understand how firms respond to regulation in terms of corporate social responsibility (CSR) and corporate political activity (CPA), the two main pillars of nonmarket activity. Examination of both CSR and CPA in concert rather than in isolation provides insights into whether they are complements or substitutes. We use textual analysis of the US Code of Federal Regulations to measure regulatory intensity and increases in regulation. Based on a sample of 331 S&P 500 firms for the period 1998–2014, our findings suggest that regulatory intensity leads to more nonmarket responses from firms. We also find support for nonlinear relationships between CSR and CPA.

Corporate Political Activity and Sensitivity to Social Attacks: The Case of Family-Managed Firms

2020 ◽  
Vol 33 (2) ◽  
pp. 152-174
Author(s):  
James G. Combs ◽  
Richard J. Gentry ◽  
Sean Lux ◽  
Peter Jaskiewicz ◽  
T. Russell Crook
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Political Activity ◽  
Large Firms ◽  
Corporate Political Activity ◽  
Standard And Poor's ◽  
Corporate Social

Family-managed firms take actions to protect their reputations. We theorize that one such action involves avoiding corporate political activity (CPA) that expose firms to social attack, especially when also invested in corporate social responsibility. Because large firms are frequent targets for social attack, the same sensitivity that encourages most family managers to avoid CPA encourages it among the largest as a buffer. Supportive analysis of Standard and Poor’s 500 firms shows that family-managed firms spend, on average, 86% less on CPA, even less when invested in substantive corporate social responsibility. The largest invest as much or more in CPA as nonfamily peers.

scholarly journals Impact of Corporate Political Activity on the Relationship Between Corporate Social Responsibility and Financial Performance: A Dynamic Panel Data Approach

2018 ◽  
Vol 11 (1) ◽  
pp. 60 ◽  
Author(s):  
Woon Lin ◽  
Jo Ho ◽  
Murali Sambasivan
Keyword(s):  
Corporate Social Responsibility ◽  
Panel Data ◽  
Financial Performance ◽  
Dynamic Panel Data ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Dynamic Panel ◽  
Financial Position ◽  
Corporate Social ◽  
The Relationship

As corporate social responsibility (CSR) gains momentum in the business world, it is imperative to comprehend the relationship between CSR and corporate financial performance (CFP). While there is prior research looking at this relationship, scholars have proposed a contingency view that is meant to determine the situational contexts in which critical associations between CFP and CSR activities will arise. This study provides further insight into the moderating effects of corporate political activity, specifying the ways in which different arrangements of corporate CSR and CPA might align or otherwise, thus influencing CFP beyond associated dissimilar effects on corporate performance. The data for this study was obtained for the periods 2007–2016 from the samples selected from the list of Fortune’s World’s Most Admired Companies. The dynamic panel data was analyzed using the System Generalized Method of Moment estimation. The main findings are that CSR does not significantly influence CFP. However, CPA does negatively moderate the relationship between CSR and CFP. This indicates that high political expenditures worsen a firm’s financial position compared to the financial position of firms with less spending on CPA.

scholarly journals Corporate Social Responsibility Information Disclosure and Innovation Sustainability: Evidence from China

2020 ◽  
Vol 12 (1) ◽  
pp. 409 ◽  
Author(s):  
Wenxiu Hu ◽  
Jinzhu Du ◽  
Weiguo Zhang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Disclosure ◽  
Positive Relationship ◽  
Dominant Role ◽  
Minority Shareholders ◽  
Information Hypothesis ◽  
Reputation Effects ◽  
Corporate Social ◽  
The Relationship

We selected the Chinese A-share listed companies during period of 2007 to 2017 as the research subject, and from the perspective of information and reputation effects, we examined the relationship between corporate social responsibility (CSR) information disclosure and innovation sustainability. The results show that CSR information disclosure has a significant positive relationship with innovation sustainability. Analysis of the effects channel suggests that the information effect plays a dominant role; CSR information disclosure can alleviate the information asymmetry between managers and investors, controlling shareholders and minority shareholders, and alleviate the financing constraint problems, thereby improving innovation sustainability. Our findings support the information hypothesis but not the reputation hypothesis. The relationship between CSR information disclosure and innovation sustainability is more significant in non-state-owned companies. The moderating effect shows that managerial stock incentives can strengthen the positive relationship between CSR information disclosure and innovation sustainability. A series of robustness test results show that the conclusions are reliable. The research is important for promoting the fulfillment of CSR, improving corporate innovation, and promoting the healthy development of the capital market.

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