Exploring the Impact of Corporate Social Responsibility Policies on Firm Value : the Case of Listed Companies in Romania

• Autorzy: Gherghina Ştefan Cristian , Georgeta Vintilă
• Języki publikacji: EN

Abstrakty

EN

Corporate social responsibility (CSR) highlights the reaction to social pressures, respectively the reply to the needs and expectations of stakeholders, concerns towards the environment, and social needs that depict its dimensions. Our paper aims at providing evidence on the links between CSR and firm value on the example of listed companies in Romania. The importance of this research emerges by the goal of strengthening a high level of consumer's trust in business and the noteworthy impact of companies to societal well-being. Based on a multidimensional CSR policies questionnaire, we developed a global index of CSR, as well as four subindices on social involvement, employees, products and services, environmental protection, both equal-weighted (EW) and stakeholder-weighted (SW). Firm value was proxied by Tobin's Q ratio adjusted according to activity sector. Based on the EW approach, we found a positive impact of the CSR global index and CSR subindices, with the exception of the CSR subindex related to environmental protection, on firm value. The SW approach reinforces only the positive impact of the CSR global index and CSR subindex on the quality, safety, and effectiveness related to products and services, on firm value. Besides, several CSR aggregate measures are significantly different for listed companies on the first tier and listed companies on the second tier. (original abstract)

Słowa kluczowe

EN

Corporate Social Responsibility (CSR); Enterprise value; Regression models

PL

Społeczna odpowiedzialność biznesu; Wartość przedsiębiorstwa; Modele regresji

• Czasopismo: Economics & Sociology
• Rocznik: 2016
• Tom: 9
• Numer: nr 1
• Strony: 23--42

Twórcy

autor

Gherghina Ştefan Cristian

• Bucharest University of Economic Studies, Bucharest, Romania

autor

Georgeta Vintilă

• Bucharest University of Economic Studies, Bucharest, Romania

Bibliografia

• Akpinar, A., Jiang, Y., Gomez-Mejia, L. R., Berrone, P., Walls, J. L. (2008), Strategic use of CSR as a signal for good management, Available online: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1134505 (referred on 31/01/2014).
• Alchian, A. A., Demsetz, H. (1972), Production, information costs, and economic organization, The American Economic Review, Vol. 62, No. 5, pp. 777-795.
• Alexander, G. J., Buchholz, R. A. (1978), Corporate social responsibility and stock market performance, Academy of Management Journal, Vol. 21, No. 3, pp. 479-486.
• Anderson, J. C., Frankle, A. W. (1980), Voluntary social reporting: An iso-beta portfolio analysis, The Accounting Review, Vol. 55, No. 3, pp. 467-479.
• Arlow, P., Gannon, M. J. (1982), Social responsiveness, corporate structure, and economic performance, Academy of Management Review, Vol. 7, No. 2, pp. 235-241.
• Aupperly, K. E., Carroll, A. B., Hatfield J. D. (1985), An empirical examination of the relationship between corporate social responsibility and profitability, Academy of Management Journal, Vol. 28, No. 2, pp. 446-463.
• Bebchuk, L., Cohen, A., Ferrell, A. (2009), What matters in corporate governance? The Review of Financial Studies, Vol. 22, No. 2, pp. 783-827.
• Berle, A., Means, G. (1932), The modern corporation and private property, New York: Macmillan.
• Berman, S. L., Wicks, A. C, Kotha S., Jones, T. M. (1999), Does stakeholder orientation matter? The relationship between stakeholder management models and firm financial performance, Academy of Management Journal, Vol. 42, No. 5, pp. 488-506.
• Bird, R., Hall, A. D., Momenté, F., Reggiani, F. (2007), What corporate social responsibility activities are valued by the market? Journal of Business Ethics, Vol. 76, No. 2, pp. 189-206.
• Carroll, A. B. (1979), A three-dimensional conceptual model of corporate performance, Academy of Management Review, Vol. 4, No. 4, pp. 497-505.
• Cheung ,Y. L., Tan, W., Ahn, H.-J., Zhang, Z. (2010), Does corporate social responsibility matter in Asian emerging markets? Journal of Business Ethics, Vol. 92, No. 3, pp. 401-413.
• Choi, J. S., Kwak, Y. M., Choe, C. (2010), Corporate social responsibility and corporate financial performance: Evidence from Korea, Australian Journal of Management, Vol. 35, No. 3, pp. 291-311.
• Coase, R. H. (1937), The nature of the firm, Economica, Vol. 4, No. 16, pp. 386-405.
• Commission of the European Communities. Green Paper. Promoting a European framework for Corporate Social Responsibility. Brussels, 18.7.2001. COM(2001) 366 final. http://www.europarl.europa.eu/meetdocs/committees/deve/20020122/com%282001%29366_en.pdf (referred on 31/01/2014).
• Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the Sustainable Consumption and Production and Sustainable Industrial Policy Action Plan, Brussels, 16.7.2008, COM(2008) 397 final. http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0397:FIN:en:PDF (referred on 31/01/2014).
• Cornell, B., Shapiro, A. C. (1987), Corporate stakeholder and corporate finance, Financial Management, Vol. 16, No. 1, pp. 5-14.
• Council Directive 92/75/EEC of 22 September 1992 on the indication by labelling and standard product information of the consumption of energy and other resources by household appliances (OJ L 297, 13.10.1992, p. 16). http://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:31992L0075&from=EN (referred on 31/01/2014).).
• Crisóstomo, V. L., Freire, F. S., Vasconcellos, F. C. (2011), Corporate social responsibility, firm value and financial performance in Brazil, Social Responsibility Journal, Vol. 7, No. 2, pp. 295-309.
• Cronqvist, H., Heyman, F., Nilsson, M., Svaleryd, H., Vlachos, J. (2009), Do entrenched managers pay their workers more? The Journal of Finance, Vol. 64, No. 1, pp. 309-339.
• Cyert, R. M., March, J. G. (1963), A behavioral theory of the firm, Englewood Cliffs: Prentice-Hall.
• Davis, K. (1973), The case for and against business assumption of social responsibilities, Academy of Management Journal, Vol. 16, No. 2, pp. 312-322.
• Directive 2005/32/EC of the European Parliament and of the Council of 6 July 2005 establishing a framework for the setting of ecodesign requirements for energy-using products (OJ L 191, 22.7.2005, p. 29). http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:191:0029:0058:en:PDF (referred on 31/01/2014).).
• Donaldson, T. (1982), Corporations and morality, Englewood Cliffs: Prentice-Hall.
• Dowell, G. A., Hart, S., Yeung, B. (2000), Do corporate global environmental standards create or destroy market value? Management Science, Vol. 46, No. 8, pp. 1059-1074.
• Eisenberg, T., Sundgren, S., Wells, M. T. (1998), Larger board size and decreasing firm value in small firms, Journal of Financial Economics, Vol. 48, No. 1, pp. 35-54.
• Elkington, J. (1999), Cannibals with forks: The triple bottom line of 21st century business, Oxford: Capstone.
• European Commission. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. A renewed EU strategy 2011-14 for Corporate Social Responsibility. Brussels, 25.10.2011. COM(2011) 681 final. http://www.europarl.europa.eu/meetdocs/2009_2014/documents/com/com_com%282011%290681_/com_com%282011%290681_en.pdf (referred on 31/01/2014).).
• Freeman, R. E. (1984), Strategic mangement: A stakeholder approach, Boston: Pitman.
• Friedman, M. (1970), The social responsibility of business is to increase its profits, New York Times Magazine, pp. 122-126.
• Frooman, J. (1997), Socially irresponsible and illegal behavior and shareholder wealth, Business & Society, Vol. 36, No. 3, pp. 221-249.
• Gimenez, C., Sierra, V., Rodon, J. (2012), Sustainable operations: Their impact on the triple bottom line, International Journal of Production Economics, Vol. 140, No. 1, pp. 149-159.
• Gompers, P., Ishii J., Metrick, A. (2003), Corporate governance and equity prices, Quarterly Journal of Economics, Vol. 118, No. 1, pp. 107-156.
• Graves, S. B., Waddock, S. A. (1994), Institutional owners and corporate social performance, Academy of Management Journal, Vol. 37, No. 4, pp. 1034-1046.
• Greeno, J. L., Robinson, S. N. (1992), Rethinking corporate environmental management, Columbia Journal of World Business, Vol. 27, No. 3/4, pp. 222-232.
• Griffin, J. J., Mahon, J. F. (1997), The corporate social performance and corporate financial performance debate. Twenty-five years of incomparable research, Business and Society, Vol. 36, No. 1, pp. 5-31.
• Guenster, N., Bauer, R., Derwall, J., Koedijk, K. (2011), The economic value of corporate eco-efficiency, European Financial Management, Vol. 17, No. 4, pp. 679-704.
• Gujarati, D. N. (2003), Basic econometrics, 5th ed., New York: McGraw-Hill.
• Hart, S. L. (1997), Beyond greening: Strategies for a sustainable world, Harvard Business Review, Vol. 75, No. 1, pp. 66-76.
• Hill, C. W. L., Jones, T. M. (1992), Stakeholder-agency theory, Journal of Management Studies, Vol. 29, No. 2, pp. 131-154.
• Horváthová, E. (2010), Does environmental performance affect financial performance? A meta analysis, Ecological Economics, Vol. 70, No. 1, pp. 52-59.
• Husted, B. W., Allen, D. B. (2007), Strategic corporate social responsibility and value creation among large firms: Lessons from the Spanish experience, Long Range Planning, Vol. 40, No. 6, pp. 594-610.
• Husted, B. W., Salazar, J. D. J. (2006), Taking Friedman seriously: Maximizing profits and social performance, Journal of Management Studies, Vol. 43, No. 1, pp. 75-91.
• Jensen, M. C., Meckling, W. H. (1976), Theory of the firm: Managerial behavior, agency costs and ownership structure, Journal of Financial Economics, Vol. 3, No. 4, pp. 305-360.
• Jo, H., Harjoto, M. A. (2011), Corporate Governance and firm value: The impact of corporate social responsibility, Journal of Business Ethics, Vol. 103, No. 3, pp. 351-383.
• Jones, T. M. (1995), Instrumental stakeholder theory: A synthesis of ethics and economics, Academy of Management Review, Vol. 20, No. 2, pp. 404-437.
• Kaplan, S., Zingales, L. (1997), Do investment-cash flow sensitivities provide useful measures of financing constraints? Quarterly Journal of Economics, Vol. 112, No. 1, pp. 169-216.
• Kleiner, A. (1991), What does it mean to be green? Harvard Business Review, Vol. 69, No. 4, pp. 38-47.
• Knight, C. F. (1995), Pollution prevention, technology challenges, and competitive advantage in the process industries, Environmental Quality Management, Vol. 5, No. 1, pp. 87-92.
• Lioui, A., Sharma, Z. (2012), Environmental corporate social responsibility and financial performance: Disentangling direct and indirect effects, Ecological Economics, Vol. 78, pp. 100-111.
• Marsat, S., Williams, B. (2013), CSR and market valuation: International Evidence, Bankers, Markets & Investors, No. 123, pp. 29-42.
• McGuire, J. B., Schneeweiss, T., Branch, B. (1990), Perceptions of firm quality: A cause or result of firm performance, Journal of Management, Vol. 16, No. 1, pp. 167-180.
• McGuire, J. B., Sundgren A., Schneeweiss T. (1988), Corporate social responsibility and firm financial performance, Academy of Management Journal, Vol. 31, No. 4, pp. 854-872.
• Miles, M. P., Covin, J. G. (2000), Environmental marketing: A source of reputational, competitive, and financial advantage, Journal of Business Ethics, Vol. 23, No. 3, pp. 299-311.
• Moratis, L., Cochius, T. (2011), The Business Guide to the New Standard on Social Responsibility, Sheffield: Greenleaf Publishing.
• Nelling, E., Webb, E. (2009), Corporate social responsibility and financial performance: The "virtuous circle" revisited, Review of Quantitative Finance and Accounting, Vol. 32, No. 2, pp. 197-209.
• Ozar, D. (1979), The moral responsibility of corporations, In: Ethical issues in business, 1st ed., Donaldson T., Werhane P., Eds., Englewood Cliffs: Prentice-Hall, pp. 294-300.
• Pagano, M., Volpin, P. F. (2005), Managers, workers, and corporate control, The Journal of Finance, Vol. 60, No. 2, pp. 841-868.
• Porter, M. E., Van der Linde, C. (1995), Green and competitive: Ending the stalemate, Harvard Business Review, Vol. 73, No. 5, pp. 120-134.
• Preston, L. E., O'Bannon, D. P. (1997), The corporate social financial performance relationship: A typology and analysis, Business & Society, Vol. 36, No. 4, pp. 419-429.
• Rawls, J. (1971), A theory of justice, Cambridge: Harvard University Press.
• Regulation (EC) No 106/2008 of the European Parliament and of the Council of 15 January 2008 on a Community energy efficiency labelling programme for office equipment (OJL 39, 13.2.2008, p. 1). http://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:32008R0106&from=EN (referred on 31/01/2014).).
• Regulation (EC) No 1980/2000 of the European Parliament and of the Council of 17 July 2000 on a revised Community ecolabel award scheme (OJ L 237, 21.9.2000, p. 1). http://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:32000R1980&from=EN (referred on 31/01/2014)).
• Roberts, R. (1992), Determinants of corporate social responsibility disclosure, Accounting, Organizations and Society, Vol. 17, No. 6, pp. 595-612.
• Schuler, A. D., Cording, M. (2006), A corporate social performance-corporate financial performance behavioral model for consumers, Academy of Management Review,Vol. 31, No. 3, pp. 540-558.
• Sen, A. (1997), Economics, business principles and moral sen timents, Business Ethics Quarterly, Vol. 7, No. 3, pp. 5-15.
• Shrivastava, P. (1995a), Environmental technologies and competitive advantage, Strategic Management Journal, Vol. 16, No. S1, pp. 183-200.
• Shrivastava, P. (1995b), The role of corporations in achieving ecological sustainability, Academy of Management Review, Vol. 20, No. 4, pp. 936-960.
• Sriram, K., Ganesh, L. S., Madhumathi, R. (2013), Inferring principles for sustainable development of business through analogies from ecological systems, IIMB Management Review, Vol. 25, No. 1, pp. 36-48.
• Starik, M., Marcus, A. A. (2000), Introduction to the special research forum on the management of organizations in the natural environment: A field emerging from multiple paths, with many challenges ahead, Academy of Management Journal, Vol. 43, No. 4, pp. 539-546.
• Surroca, J., Tribó, J. A. (2008), Managerial entrenchment and corporate social performance, Journal of Business Finance & Accounting, Vol. 35, No. 5-6, pp. 748-789.
• Surroca, J., Tribó, J. A., Waddock, S. (2010), Corporate Responsibility and Financial Performance: The role of intangible resources, Strategic Management Journal, Vol. 31, No. 5, pp. 463-490.
• Swanson, D. L. (1995), Addressing a theoretical problem by reorienting the corporate social performance model, Academy of Management Review, Vol. 20, No. 1, pp. 43-64.
• Taylor, S. R. (1992), Green management: the next competitive weapon, Futures, Vol. 24, No. 7, pp. 669-680.
• Trung, D. N., Kumar, S. (2005), Resource use and waste management in Vietman hotel industry, Journal of Cleaner Production, Vol. 13, No. 2, pp. 109-116.
• Ullmann, A. A. (1985), Data in search of a theory: A critical examination of the relationships among social performance, social disclosure, and economic performance of U.S. firms, Academy of Management Review, Vol. 10, No. 3, pp. 540-557.
• Vance, S. G. (1975), Are socially responsible firms good investment risks? Management Review, Vol. 64, No. 8, pp. 18-24.
• Waddock, S. A., Graves, S. B. (1997a), Quality of management and quality of stakeholder relations, Business & Society, Vol. 36, No. 3, pp. 250-279.
• Waddock, S. A., Graves, S. B. (1997b), The corporate social performance-financial performance link, Strategic Management Journal, Vol. 18, No. 4, pp. 303-319.
• Wood, D. J. (1991), Corporate social performance revisited, Academy of Management Review, Vol. 16, No. 4, pp. 691-718.
• Wood, D. J., Jones, R. E. (1995), Stakeholder mismatching: A theoretical problem in empirical research on corporate social performance, International Journal of Organizational Analysis, Vol. 3, No. 3, pp. 229-267.
• World Commission on Environment and Development (1987), Report of the World Commission on Environment and Development: Our Common Future, Oxford: Oxford University Press.

Identyfikatory

DOI

10.14254/2071-789X.2016/9-1/2