Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 4 of 4
Full-Text Articles in Business
Country-Level Institutions, Firm Value, And The Role Of Corporate Social Responsibility Initiatives, Sadok El Ghoul, Omrane Guedhami, Yongtae Kim
Country-Level Institutions, Firm Value, And The Role Of Corporate Social Responsibility Initiatives, Sadok El Ghoul, Omrane Guedhami, Yongtae Kim
Accounting
Drawing on transaction cost theories and the resource-based view of a firm, we posit that the value of corporate social responsibility (CSR) initiatives is greater in countries where an absence of market-supporting institutions increases transaction costs and limits access to resources. Using a large sample of 11,672 firm-year observations representing 2445 unique firms from 53 countries during 2003–2010 and controlling for firm-level unobservable heterogeneity, we find supportive evidence that CSR is more positively related to firm value in countries with weaker market institutions. We also provide evidence on the channels through which CSR initiatives reduce transaction costs. We find that …
Is Institutional Ownership Related To Corporate Social Responsibility? The Nonlinear Relation And Its Implication For Stock Return Volatility, Maretno Harjoto, Hoje Jo, Yongtae Kim
Is Institutional Ownership Related To Corporate Social Responsibility? The Nonlinear Relation And Its Implication For Stock Return Volatility, Maretno Harjoto, Hoje Jo, Yongtae Kim
Accounting
This study examines the relation between corporate social responsibility (CSR) and institutional investor ownership, and the impact of this relation on stock return volatility. We find that institutional ownership does not strictly increase or decrease in CSR; rather, institutional ownership is a concave function of CSR. This evidence suggests that institutional investors do not see CSR as strictly value-enhancing activities. Institutional investors adjust their percentage of ownership when CSR activities go beyond the perceived optimal level. Employing the path analysis, we also examine the mediating effect of institutional ownership on the relation between CSR and stock return volatility. We find …
Corporate Social Responsibility And Stock Price Crash Risk, Yongtae Kim, Haidan Li, Siqi Li
Corporate Social Responsibility And Stock Price Crash Risk, Yongtae Kim, Haidan Li, Siqi Li
Accounting
This study investigates whether corporate social responsibility (CSR) mitigates or contributes to stock price crash risk. Crash risk, defined as the conditional skewness of return distribution, captures asymmetry in risk and is important for investment decisions and risk management. If socially responsible firms commit to a high standard of transparency and engage in less bad news hoarding, they would have lower crash risk. However, if managers engage in CSR to cover up bad news and divert shareholder scrutiny, CSR would be associated with higher crash risk. Our findings support the mitigating effect of CSR on crash risk. We find that …
Do Corporations Invest Enough In Environmental Responsibility?, Yongtae Kim, Meir Statman
Do Corporations Invest Enough In Environmental Responsibility?, Yongtae Kim, Meir Statman
Accounting
Proponents of corporate environmental responsibility argue that corporations shortchange shareholders by investing too little in environmental responsibility. They claim that corporations can improve their financial performance by increasing their investment in environmental responsibility. Opponents of corporate social responsibility argue that corporations shortchange shareholders by investing too much in environmental responsibility. They claim that corporations can improve their financial performance by reducing their investment in environmental responsibility. Yet others claim that corporations serve their shareholders well by investing just enough in social responsibility, not too little and not too much. If so, corporations increase their investment in environmental responsibility when an …