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.

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 Corporate Social Responsibility Disclosure and Its Effect on Firm Risk: An Empirical Research on Vietnamese Firms

2021 ◽  
Vol 13 (22) ◽  
pp. 12933
Author(s):  
Cao Thi Mien Thuy ◽  
Nguyen Vinh Khuong ◽  
Nguyen Thanh Liem
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Emerging Market ◽  
Listed Companies ◽  
Policy Implications ◽  
Firm Risk ◽  
Research Perspective ◽  
Csr Disclosure ◽  
Corporate Social

The purpose of the study was to gather empirical evidence on the influence of corporate social responsibility (CSR) disclosure on firm risk of Vietnam’s publicly listed companies. We used adjusted OLS estimation and regression analysis with adjusted panel data for heteroskedasticity and/or autocorrelation to analyze the correlation using data from 225 listed companies on Vietnam’s stock market from 2014 to 2019. The study’s sample period is relatively recent in the emerging market, especially considering regulatory differences and the availability of voluntary disclosure requirements. The findings of research on the relationship between CSR and corporate risk are mixed, particularly in developing markets. Research findings reveal a negative and significant association between CSR and firm risk, implying that stronger CSR performance lowers a company’s risk. This aims to strengthen a research perspective of this connection in emerging countries. Following that, we discuss some policy implications for listed firms and regulators in CSR disclosure.

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.

scholarly journals Efficacy of corporate social responsibility in corporate governance structures of family owned business groups in India

2018 ◽  
Vol 2 (1) ◽  
pp. 52-68 ◽  
Author(s):  
Raveena Naz
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Family Business ◽  
Family Firms ◽  
Business Groups ◽  
Business Group ◽  
Governance Structures ◽  
The Family ◽  
Corporate Social

The concept of ‘Corporate Social Responsibility’ (CSR) has often relied on firms thinking beyond their economic interest despite the larger debate of shareholder versus stakeholder interest. India gave legal recognition to CSR in the Companies Act, 2013. CSR in India is believed to be different for two reasons: the dominance of family business and the history of practice of social responsibility as a form of philanthropy (mainly among the family business). This paper problematises the actual structure of business houses in India and the role of CSR in a context where the law identifies each company as a separate business entity while the economics of institutions emphasizes the ‘business group’ consisting of a plethora of firms as the institutional organization of business where capital owned or controlled by the family group is spread across the firms through the interlocked holding structures. Within this framework, the largest family firms, which are part of family owned business groups, top the CSR expenditure list. The governance structure of family firms allows family owned business group to show mandatory compliance of CSR even when they actually spend much less than what is prescribed by law. This aspect of the family firms is not addressed by the CSR legislation in particular or corporate governance legislation in general in India. The paper illustrates this with an empirical study of one of the largest family owned business group in India Reliance Industries Limited (RIL), which is well acclaimed for its CSR activities. The paper demonstrates how the business group through these series of shareholding network reduces its legally mandated CSR liability. The paper thus indicates the inadequacy of CSR legislation in India because the unit of compliance is an individual firm and it assumes that each firm is independent and only connected to each other through market dealings. The law does not recognize the inter-connections of firms (through common ownership and control) in corporate governance structures of family owned business group and hence is inadequate in its design to effect the threshold level of CSR expenditure. This is the central argument of the paper.

Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market

2020 ◽  
pp. 097215092092044 ◽  
Author(s):  
Kalpana Tokas ◽  
Kartik Yadav
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Host Country ◽  
Emerging Market ◽  
Business Group ◽  
Foreign Ownership ◽  
Foreign Firms ◽  
Domestic Firms ◽  
Corporate Social ◽  
The Impact

This article adds to the international business and corporate social responsibility (CSR) literature by investigating the impact of foreign ownership on the CSR expenditures of firms in a host country, within an emerging market context. Previous studies have examined the relationship between ownership structure and CSR engagement, primarily for the case of developed nations. This article explores the linkages between the CSR spending of foreign-owned firms in relation to their domestic counterparts for the Indian context. India provides a unique case because of the landmark legislation undertaken in 2014 that mandated CSR spending for firms based in India. This study examines the motivations that guide the CSR strategies of foreign firms in host nations and attempts to explain the usage of CSR spending as a tool to overcome Liability of Foreignness and achieve legitimacy using the neo-institutional theory. Within this unique setting, a sample of 3591 firm years in India for 2014–2018 is used to examine whether foreign-owned firms indulge in a higher CSR expenditure relative to domestic firms, using a random-effects model. Further, it is also examined whether business group-affiliated foreign firms spend differently on CSR than standalone foreign enterprises in the host nation. The results show that foreign ownership is associated with a higher CSR spending than domestic firms by an average of ₹1.35 million in the host country. Furthermore, among foreign firms, a business group affiliation leads to a higher CSR spending by an average of ₹1.55 million as compared to stand-alone foreign firms.

Corporate Social Responsibility (CSR) communication patterns in an emerging market

2018 ◽  
Vol 31 (4) ◽  
pp. 795-809 ◽  
Author(s):  
Noha El-Bassiouny ◽  
Menatallah Darrag ◽  
Nada Zahran
Keyword(s):  
Corporate Social Responsibility ◽  
Content Analysis ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Exploratory Study ◽  
Emerging Market ◽  
Listed Companies ◽  
Content Type ◽  
Csr Communication ◽  
Corporate Social

Purpose The purpose of this paper is to explore the concept of Corporate Social Responsibility (CSR) communication. This paper specifically aims at introspecting into CSR communication patterns in the Egyptian context, where the top ten companies in the Egyptian Stock Exchange–Environmental, Social and Governance Index (EGX-ESG) are sampled. Design/methodology/approach The paper presents an exploratory study where content analysis of the communications of the ten top-listed companies in the ESG Index in Egypt was analyzed. Findings The results showed that most companies are using the “stakeholder information” strategy, with the “stakeholder involvement” strategy being the least used. Research limitations/implications The results are limited to the use of the content analysis method which is a qualitative methodology. Hence, the results should be generalized with caution. Practical implications CSR communication is crucial to the success of companies, regardless of business size, industry or culture. Several aspects of CSR communication, to this day, remain vague for academics and practitioners alike. Therefore, additional insights about the topic should be generated. The present work aids in the understanding of CSR communication as a facet of organizational change and a new trend in emerging markets. Social implications The current exploratory study sheds light on the topic of CSR communication in an important emerging market in transition, namely Egypt. The results of the communication strategies utilized by the top-listed companies can be generalized to other similar contexts. Originality/value The majority of the studies conducted on this particular topic took place in the USA and Europe; hence, few insights are provided about the concept in emerging markets.

CSR Initiatives of Family Firms

2019 ◽  
pp. 149-172
Author(s):  
Salvador S. Guajardo ◽  
Aurora Correa-Flores ◽  
Barbara I. Mojarro-Durán ◽  
Alfonso Ernesto Benito Fraile
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Economic Activity ◽  
Family Firms ◽  
Business Groups ◽  
Business Group ◽  
Exploratory Research ◽  
Research Findings ◽  
Social Initiatives ◽  
Corporate Social

This chapter studies the corporate social responsibility (CSR) initiatives of the leading Mexican business groups. Investigating in family firms is essential because they represent the world's most predominant form of organization. One way in which family firms organize their economic activity and structure are business groups. Mexican family firms conform to business groups within the same family. The purpose of this chapter is to inquiry the corporate social initiatives emanating from the main Mexican business groups. Through quantitative and qualitative exploratory research, findings show that business groups in Mexico orient their corporate social initiatives into internal and external strategies, and tend to distribute disproportionally the amount of initiatives and money invested among each of its affiliates. Also, firms affiliated to a business group have a higher probability than unaffiliated firms of being classified as “sustainable,” according to the IPC Sustainable Index.

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.

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