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Full-Text Articles in Business
Stakeholder Capitalism: An Investigation Of The Linkage Between Corporate Social Responsibility And Financial Performance, Cynthia Walsh
Stakeholder Capitalism: An Investigation Of The Linkage Between Corporate Social Responsibility And Financial Performance, Cynthia Walsh
College of Business Theses and Dissertations
Utilizing a large sample of firms over a 13-year period, we examine the impact of ESG Score on profitability. While we fail to find a significant effect for the continuous ESG Score variable, we find conditions where Corporate Social Responsibility (CSR) plays an important role in financial performance. Specifically, after controlling for relevant firm characteristics and fixed effects, we find that the highest quartile of ESG Scores experience an average increase in return on assets of 4%. This effect is amplified for the CSR-sensitive energy industry. Additionally, CSR can play an important role in mitigating loss during times of economic …
The Relationship Between A Firm’S Ownership Structure, Governance, And Innovation, Erica J. Wagner
The Relationship Between A Firm’S Ownership Structure, Governance, And Innovation, Erica J. Wagner
College of Business Theses and Dissertations
Firm innovation is key for many companies to continuously thrive in the marketplace. Unfortunately, there are drawbacks to making innovative investments because of the upfront costs and riskiness of future returns. This creates conflicts because managers are under pressure to meet short-term earnings forecasts. A managers’ short-term focus on a firm’s business strategy may not be in the best interests of the shareholders’ long-term vision of a firm. For this reason, a strong corporate governance system can trigger an increased level of monitoring of the decision-making of managers so that it’s aligned with shareholders’ goals. Often, a firm’s long-term strategy …