scholarly journals Understand the Role of Business Group Affiliation and Interlocking Directorates on Corporate Social Responsibility of Affiliated Firms:An Empirical Investigation

2018 ◽  
Author(s):  
Santosh Kumar Tiwari ◽  
Sudipta Sen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Empirical Investigation ◽  
Business Group ◽  
Group Affiliation ◽  
Interlocking Directorates ◽  
Business Group Affiliation ◽  
Corporate Social

Corporate social responsibility, business group affiliation and shareholder wealth: evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eswaran Velayutham ◽  
Vijayakumaran Ratnam
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Market ◽  
Business Group ◽  
Shareholder Wealth ◽  
Group Affiliation ◽  
Content Type ◽  
Business Group Affiliation ◽  
Corporate Social ◽  
The Relationship

Purpose This paper aims to examine the relationship between corporate social responsibility (CSR) and shareholder wealth arising from announcement returns of security issuance from a frontier market. It also explores the role of business group affiliation (BGA) on this relationship. Design/methodology/approach The study uses short-term scenarios to examine the link between CSR and shareholder wealth using the event study methodology which helps us mitigate the reverse causality problems related to studies of the relationship between CSR and firm value. Abnormal returns surrounding the security issue announcements were generated using the market model. Findings This paper finds that security issuers with high CSR scores are associated with higher shareholder value. However, this paper finds that CSR activities of security issuers with BGA are value-destroying which is consistent with the agency perspective of CSR. Research limitations/implications This study is limited to only one nascent market, namely the Colombo Stock Exchange. Originality/value This study documents that CSR and BGA are important determinants, among others, of stock price reactions to security offerings in emerging markets.

scholarly journals Business Group-Affiliation and Corporate Social Responsibility: Evidence from Listed Companies in China

2021 ◽  
Vol 13 (4) ◽  
pp. 2110
Author(s):  
Xin Huang ◽  
Xianling Jiang ◽  
Wei Liu ◽  
Qian Chen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Market ◽  
Business Groups ◽  
Listed Companies ◽  
Business Group ◽  
Vital Role ◽  
Group Affiliation ◽  
Business Group Affiliation ◽  
Corporate Social

Business groups have played a vital role in the development of emerging markets. However, we share very limited understanding in the role of business group that act on affiliated firms’ CSR performance. Using manually sorted data on A-share listed companies and business groups in China from 2010–2017, we examine whether a company’s business group-affiliation affects its corporate social responsibility (CSR) performance and the mediating mechanisms of this association. Our empirical models show that group companies bear a higher level of social responsibility compared to independent companies. This positive relationship between group-affiliation and social responsibility relies on resource allocation through internal capital markets, rent-seeking initiatives, and consideration of corporate reputation. Moreover, group affiliation benefits the firm’s CSR performance in employee’s responsibilities, consumers’ responsibilities and environmental responsibilities, while significantly lower the shareholders’ responsibilities. Our empirical valuation of group companies’ CSR levels can serve as a benchmark for emerging market companies implementing social responsibility policies.

Peer Effect on Corporate Social Responsibility

2019 ◽  
Vol 10 (3) ◽  
pp. 114-130 ◽  
Author(s):  
Shaili Singh ◽  
Mahua Guha
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Generalized Least Squares ◽  
Business Group ◽  
Group Affiliation ◽  
Positive Role ◽  
Cross Sectional ◽  
Social Community ◽  
Corporate Social ◽  
Industry Peers

This study explores a firm's response to institutional pressure from industry peers on their Social community spending. Social community spending is symbolic of the fulfillment of a firm's corporate social responsibility (CSR). The authors hypothesize that mimetic isomorphism occurs among firms in an industry and organizational characteristics, i.e., business group affiliation, ownership status (state-owned versus private), and firm size strengthen or weaken the influence of industry peers. The authors test the propositions on a pooled time-series cross-sectional data of firms in India, with 3,307 observations from 2009-2017 using Generalized Least Squares (GLS) random-effects model. The findings suggest industry peers have a positive influence on a firm's SCS, and this effect is stronger for state-owned enterprises and large firms and weaker for a business group affiliated firms which further aggravates with group size. This article establishes the positive role of the industry association in driving its member firm's SCS and offers an understanding of the contingencies in the above relationship.

Does institutional ownership and internationalization affect corporate social responsibility in emerging economy firms? An empirical evidence from India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manogna R.L. ◽  
Aswini Kumar Mishra
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Institutional Investors ◽  
Emerging Economy ◽  
Group Affiliation ◽  
International Investments ◽  
Content Type ◽  
Business Group Affiliation ◽  
Lending Institutions ◽  
Corporate Social

Purpose The preference of firm corporate social responsibility (CSR) spending is shaped by different groups of owners and the institutional environment in which the firm operates. This paper aims to study the heterogeneity among the controlling groups and firms’ internationalization in influencing the CSR decision in emerging economy firms. Design Methodology Approach This paper draws understanding from institutional theory to inspect the propensities of various ownership groups such as lending institutions (LI), domestic mutual funds (MF) and foreign institutional investors (FIIs). The empirical analysis was conducted from a sample of 1,594 unique Bombay stock exchange (BSE)-listed non-financial Indian firms during the 2014–2019 period using Tobit panel regression analysis. Findings The findings reveal that firms’ CSR activities are impacted differently by ownership share of different types of institutional investors after controlling for firm-level resources and capabilities. Lending institutions, FIIs and MF are supportive of CSR investments by firms along with international investments by the firm. Further, the results show that the CSR spend is positively influenced by the business group affiliation of the firm compared to the unaffiliated group of firms. Practical Implications The analysis has implications for both institutional investors and multinational firms. In the merging market context, managers and owners who target long term strategies such as CSR will benefit from increasing shareholdings of creditors (lending institutions). They can also take steps to improve their transparency and corporate governance structure so as to attract foreign institutional investments, thus, in turn, helping the internationalization process of the firm. Originality Value This paper considers the role of the diverseness of the ownership institutional investors along with the moderating effect of business group affiliation of the firm and international investments in impacting the CSR spend. This disparity has not been previously studied with the latest data in an emerging economy context.

The Ethics of Petroleum

2017 ◽  
Author(s):  
Jonathon W. Moses ◽  
Bjørn Letnes
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Host Country ◽  
Corporate Citizenship ◽  
Costs And Benefits ◽  
Political Actors ◽  
Oil Companies ◽  
Corporate Social ◽  
Oil Company

This chapter considers the role of international oil companies (IOCs) as global political actors with significant economic and political power. In doing so, we weigh the ethical costs and benefits for individuals, companies, and states alike. Using the concepts of “corporate social responsibility” (CSR) and “corporate citizenship” as points of departure, we consider the extent to which international oil companies have social and political responsibilities in the countries where they operate and what the host country can do to encourage this sort of behavior. We examine the nature of anticorruption legislation in several of the sending countries (including Norway), and look closely at how the Norwegian national oil company (NOC), Statoil, has navigated these ethical waters.

Sign in / Sign up

Export Citation Format

Share Document