nach oben

Journal of Management and Governance

Erschienen in:

28.06.2019

Corporate social responsibility, financial performance and risk in times of economic instability

verfasst von: Eric Braune, Pablo Charosky, Lubica Hikkerova

Erschienen in: Journal of Management and Governance | Ausgabe 4/2019

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This article examines the relationship between the social performance of companies and their financial performance, analyzed from the systematic risk perspective. The analysis is divided into two parts. We first investigate the relationship between the social performance of companies and their systematic risk. We then look at the link between social performance and the performance of the securities of the company. The empirical results show a negative relationship between social performance and systematic risk, resulting in a higher profitability of securities of high social performance in times of instability and depression in financial markets. The implementation of social responsibility strategies can therefore be regarded as insurance to limit sensitivity to systematic risk and preserve the value of the shareholders against the adverse effects of a crisis or bad economic conditions.

Vorheriger Artikel Do political connections affect bank leverage? Evidence from some Middle Eastern and North African countries

Nächster Artikel A conceptual framework of the adoption of innovations in organizations: a meta-analytical review of the literature

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

The market trend is defined in this work as bull if the monthly returns of the S&P500 index are > 0 and bear if they are < 0.

Agrawal, A., & Knoeber, C. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis,31(3), 377–397.CrossRef

Aman, H., & Nguyen, P. (2008). Do stock prices reflect the corporate governance of Japanese firms quality? Journal of the Japanese and International Economies,22(4), 647–662.CrossRef

Anderson, R., & Reeb, D. M. (2003). Founding family ownership and firm performance: Evidence from the S&P500. The Journal of Finance,58(3), 1301–1327.CrossRef

Bebchuk, L., & Cohen, A. (2005). The costs of entrenched boards. Journal of Financial Economics,78(2), 409–433.CrossRef

Bebchuk, L., Cohen, A., & Ferrell, A. (2009). What matters in corporate governance? Review of Financial Studies,22(2), 783–827.CrossRef

Berle, A., & Means, C. (1932). The modern corporation and private property (p. 426). New York: Commerce Clearing House.

Bhagat, S., & Black, B. (2001). The non-correlation between board independence and long term performance. Journal of Corporation Law,27(2), 231–274.

Bos, T., & Newbold, P. (1984). An empirical investigation of the possibility of stochastic systematic risk in the market model. The Journal of Business,57(1), 35–41.CrossRef

Boyd, J. H., Hu, J., & Jagannathan, R. (2005). The stock market’s reaction to unemployment news: Why bad news is usually good for stocks. The Journal of Finance,60(2), 649–672.CrossRef

Brealey, A., & Myers, S. C. (2000). Principles of corporate finance. New York: Mcgraw-Hill.

Coulmont, M., Drapeau, M., Berthelot, S., & Serret, V. (2015). Pratiques de gouvernance et risque systématique des sociétés canadiennes. La Revue du Financier, 37(212), 21–34.

Delcoure, N., & Dickens, R. (2004). REIT and REOC systematic risk sensitivity. Journal of Real Estate Research,26(3), 237–254.

Eling, M., & Marek, S. (2011). Corporate governance and risk taking: Evidence from the U.K. and German insurance markets. Institute of Insurance Economics, Working Papers on Risk Management and Insurance, No. 103.

Fabozzi, F. J., & Francis, J. C. (1978). Beta as a random factor. Journal of Financial and Quantitative Analysis,13(1), 101–116.CrossRef

Feldman, S. J., Soyka, P. A., & Ameer, P. (1997). Does improving a firm’s environmental management system and environmental performance result in a higher stock price? Journal of Investing,6, 87–97.CrossRef

Flammer, C. (2015). Does corporate social responsibility lead to superior financial performance? A Regression Discontinuity Approach. Management Science,61(11), 2549–2568.CrossRef

Hamada, R. S. (1972). The effect of the firm’s capital structure on the systematic risk of common stocks. Journal of Finance,27(2), 435–452.CrossRef

Hermalin, B., & Weisbach, M. (1991). The effects of board composition and direct incentives on firm value. Financial Management,20, 101–112.CrossRef

Hutchinson, M. (2001). Firm risk, corporate governance and firm performance. In Governance and corporate social responsibility in the new millennium: Governance and social responsibility conference—Proceedings of the 2001 conference, 26th & 27th November 2001 (pp. 1–16). School of Accounting and Finance, Deakin University, Burwood, VIC.

Jo, H., & Na, H. (2012). Does CSR reduce firm risk? Evidence from controversial industry sectors. Journal of Business Ethics,110(4), 441–456.CrossRef

Logue, L., & Merville, J. (1972). Financial policy and market expectations. Financial Management,1(3), 37–44.CrossRef

Margolis, J., Train, H., & Walsh, J. (2009). Does it pay to be good? A meta-analysis and redirection of research on the relationship between corporate social and financial performance. Working Paper, Harvard University. Available at SSRN: http://ssrn.com/abstract=1866371.

McGuire, J. B., Letting, A., & Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal,31(4), 854–872.

Nguyen, P. (2011). Corporate governance and risk taking: Evidence from Japanese firms. Pacific-Basin Finance Journal,19(3), 278–297.CrossRef

Orlitzky, M., & Benjamin, J. D. (2001). Corporate social performance and firm risk: A meta-analytic review. Business and Society,40(4), 369–396.CrossRef

Qi, M., Zhang, X., & Zhao, X. (2014). Unobserved systematic risk factor and default prediction. Journal of Banking & Finance,49, 216–227.CrossRef

Rosenberg, B., & Guy, J. (1976). Prediction of beta from investment fundamentals: Part one, prediction criteria. Financial Analysts Journal, 32(3), 60–72.CrossRef

Sahut, J. M., & Pasquini-Descomps, H. (2015). ESG impact on a firm’s market performance. International Management,19(2), 40–63.

Salama, A., Anderson, K., & Toms, J. S. (2011). Does community and environmental responsibility affect firm risk? Business Ethics: A European Review,20(2), 192–204.CrossRef

Sharpe, W. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. Journal of Finance,19(3), 425–442.

Van Horne, C. (1998). Financial management and policy (11th ed., p. 780). Englewood Cliffs, NJ: Prentice Hall.

Weinstein, D., & Yafeh, Y. (1998). We the costs of a bank-centered financial system: Evidence from the changing hand bank relationships in Japan. Journal of Finance,53(2), 635–672.CrossRef

Titel: Corporate social responsibility, financial performance and risk in times of economic instability
verfasst von: Eric Braune
Pablo Charosky
Lubica Hikkerova
Publikationsdatum: 28.06.2019
Verlag: Springer US
Erschienen in: Journal of Management and Governance / Ausgabe 4/2019
Print ISSN: 1385-3457
Elektronische ISSN: 1572-963X
DOI: https://doi.org/10.1007/s10997-019-09476-y

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 4/2019

Corporate social responsibility and governance

Security-voting structure and equity financing in the banking sector: ‘one head-one vote’ versus ‘one share-one vote’

Do political connections affect bank leverage? Evidence from some Middle Eastern and North African countries

Correction to: Corporate social responsibility and governance

Business ethics, company value and ownership structure

Moving towards digital governance of university scholars: instigating a post-truth university culture