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Article
Publication date: 14 August 2017

Ma Zhong and Lucia Gao

The purpose of this paper is to investigate the impact of corporate social responsibility (CSR) disclosure on firm-level investment efficiency.

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Abstract

Purpose

The purpose of this paper is to investigate the impact of corporate social responsibility (CSR) disclosure on firm-level investment efficiency.

Design/methodology/approach

An econometric model is used to estimate the impact of CSR reporting on investment efficiency on a sample of listed Chinese firms during the period from 2010 to 2013. Financial reporting quality is included in the model as a control variable. Investment efficiency is estimated based on existing models. Two scenarios are identified: under-investment and over-investment.

Findings

The results provide evidence of a higher level of investment efficiency for CSR reporting firms than for non-reporting firms. This relationship is, however, more pronounced in the over-investment scenario than in the under-investment scenario. In addition, the association between CSR disclosure and investment efficiency is stronger for firms with lower financial reporting quality (FRQ). These findings support the hypothesis that CSR disclosure provides effective incremental information that contributes to reduce information asymmetry and promote investment efficiency.

Originality/value

This is the first paper that directly tests the association between CSR disclosure and firm-level investment efficiency. The results suggest that firms and investors should consider the effect of CSR disclosure on information asymmetry and its impact on the availability and cost of capital. This work also contributes to the understanding of the economic impacts of CSR disclosure and provides arguments for regulatory entities to enforce CSR disclosure.

Details

Review of Accounting and Finance, vol. 16 no. 3
Type: Research Article
ISSN: 1475-7702

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Article
Publication date: 5 October 2018

Atreya Chakraborty, Lucia Gao and Shahbaz Sheikh

The purpose of this paper is to investigate if there is a differential effect of corporate governance mechanisms on firm risk in Canadian companies cross-listed on US markets and…

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Abstract

Purpose

The purpose of this paper is to investigate if there is a differential effect of corporate governance mechanisms on firm risk in Canadian companies cross-listed on US markets and Canadian companies not cross-listed (Canadian only companies).

Design/methodology/approach

Using a sample comprised of all Canadian companies included in the S&P/TSX Composite Index for the period 2009–2014, this study applies OLS and fixed effect regressions to investigate the effect of corporate governance mechanisms on firm risk. Interaction variables between governance mechanisms and the cross-listing status are used to examine if this effect is different for cross-listed firms.

Findings

Results indicate that the effect of board characteristics such as size, independence and proportion of female directors remains the same in both cross-listed and not cross-listed firms. CEO duality and insider equity ownership impact firm risk only in cross-listed companies, while institutional shareholdings, environmental, social and governance disclosure and family control affect firm risk in Canadian only firms. Overall, the empirical results indicate that some governance mechanisms impact firm risk only in firms that cross-list, while others are well-suited for Canadian only firms.

Practical implications

This study suggests that some of the differences between Canadian companies that cross-list and the Canadian companies that do not cross-list in US stock markets may change the impact of governance mechanisms on firm risk. Therefore, these findings have important implications for the design of governance mechanisms in Canadian firms. Since some of these differences are common to other economies, the conclusions can be extended to companies in other countries with similar governance structures.

Originality/value

Although previous studies have investigated the effect of governance mechanism on firm risk, this is the first paper that studies the differential effect for companies that cross-list in US markets. Specifically, differences in the ownership structure, firm control and in the regulatory and institutional environment, may explain this differential effect. Unlike most of the previous studies that focus on the effect of individual governance mechanisms, this study uses several mechanisms and their interactions at the same time.

Details

Management Decision, vol. 57 no. 10
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 21 February 2022

Lucia Gao, Shahbaz Sheikh and Hong Zhou

The purpose of this study is to empirically examine the relationship between executive compensation linked to corporate social responsibility (CSR) and firm risk. It also explores…

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Abstract

Purpose

The purpose of this study is to empirically examine the relationship between executive compensation linked to corporate social responsibility (CSR) and firm risk. It also explores the moderating role of CSR-linked compensation on the relationship between risk-taking incentives provided in executive compensation and firm risk.

Design/methodology/approach

This study uses Ordinary Least Squares (OLS) and firm-fixed effects regressions to estimate the association between CSR-linked compensation and firm risk. Furthermore, it employs instrumental variable, propensity score matching and first-order difference approaches to address concerns about endogeneity and sample selection.

Findings

Benchmark results show that CSR-linked compensation reduces both total and idiosyncratic measures of risk. Further results indicate that CSR-linked compensation reduces firm risk only when risk is above the optimal level and has no significant effect when risk is below the optimal level. Additionally, tests show that CSR-linked compensation also mitigates the positive effect of Vega of executive compensation on risk and this mitigation effect is significant only when risk is above the optimal level.

Practical implications

The empirical results of this study show that boards can use CSR-linked compensation not only to induce higher social performance but also as a risk management tool to manage risk, especially when risk is above value increasing optimal levels. Furthermore, boards can use CSR-linked compensation to mitigate excessive risk-taking induced by option compensation.

Originality/value

This study contributes to the emerging literature on CSR-linked compensation and firm risk. To our knowledge, this is the first study that documents the direct risk-reducing effect of CSR-linked compensation and its mitigating effect on the relation between Vega of executive compensation and firm risk.

Details

International Journal of Managerial Finance, vol. 19 no. 2
Type: Research Article
ISSN: 1743-9132

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Article
Publication date: 10 May 2013

Elizabeth Connors, Holly H. Johnston and Lucia S. Gao

The study aims to evaluate the informational value to investors of the Toxics Release Inventory (TRI) as an external outcome measure of corporate environmental performance…

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Abstract

Purpose

The study aims to evaluate the informational value to investors of the Toxics Release Inventory (TRI) as an external outcome measure of corporate environmental performance. Emphasis is placed on the market response differences between three highly polluting industries.

Design/methodology/approach

The study uses pooled cross‐sectional, time‐series data and an event study methodology to examine the effects of TRI emissions on abnormal market returns.

Findings

There is empirical evidence that market reactions to TRI emissions information vary by industry. Investors reward decreases in emissions in the electric utility industry, but do not penalize increases. In the chemical industry, increases in emissions are penalized, but decreases are not rewarded. Models do not capture any reaction to emissions changes in the pulp and paper industry. These results may be explained by the significant difference between industries in the US percentage of total firm sales.

Research limitations/implications

This research analyzes only data from US firms in three industries and evaluates a single measure of environmental performance, TRI. The value of TRI information is measured for one stakeholder group. Future research should attempt to address these limitations.

Practical implications

The results suggest that research on the effects of environmental performance on market‐based measures should estimate models by industry, whenever possible. From a public policy perspective, the results suggest that regulators may want to consider alternative methods of reducing chemical emissions beyond TRI disclosure in the chemicals and pulp and paper industries.

Originality/value

The study distinguishes between the value of TRI as a “message service” and the content of the “message”. TRI may provide information of value to investors, but performance changes may not be sufficient to merit a price response. The study also specifically addresses industry differences and clearly shows how average coefficients can be misleading relating to this one environmental performance indicator. The use of pooled industry coefficients may lead to inefficient resource allocation decisions within industries and ineffective policies at the regulatory level.

Details

Sustainability Accounting, Management and Policy Journal, vol. 4 no. 1
Type: Research Article
ISSN: 2040-8021

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Book part
Publication date: 2 December 2024

Vítor Corado Simões, John Cantwell and Philippe Gugler

Abstract

Details

The History of EIBA: A Tale of the Co-evolution between International Business Issues and a Scholarly Community
Type: Book
ISBN: 978-1-83608-665-9

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Article
Publication date: 25 June 2024

Qiaoling Lin, Siew Imm Ng, Norazlyn Kamal Basha, Xi Luo and Yingxia Li

Based on the computers as social actors (CASA) theory, this study aims to explore the impact of three characteristics of virtual influencers (conversational tone, autonomy and…

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Abstract

Purpose

Based on the computers as social actors (CASA) theory, this study aims to explore the impact of three characteristics of virtual influencers (conversational tone, autonomy and responsiveness) on social presence, telepresence and customer engagement.

Design/methodology/approach

Using the purposive sampling technique, online survey was administered to Chinese Gen-Z consumers engaging with virtual influencers. Subsequently, 357 respondents were sampled. SPSS 29.0 and Smart PLS 4.0 were used to perform the analyses.

Findings

The results show that conversational tone and responsiveness have significant positive effects on both social presence and telepresence. Autonomy has a positive effect on telepresence, but not social presence. Social presence and telepresence have a positive impact on customer engagement.

Originality/value

As a burgeoning field, there is still uncertainty among both practitioners and researchers about the methods that virtual influencers engage their users in the context of social media. Limited research has focused on presence (social presence and telepresence) due to virtual influencers. Therefore, the CASA theory offers valuable insights into how virtual influencers’ characteristics contribute to the presence and customer engagement and provides practical guidance for the design of virtual influencers.

Details

Young Consumers, vol. 25 no. 6
Type: Research Article
ISSN: 1747-3616

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Article
Publication date: 5 June 2024

Lucía Rey-Ares, Sara Fernández-López and Marcos Álvarez-Espiño

The ongoing evolution of the Internet and the subsequent digitalisation of financial services, along with the ever-increasing innovation of financial products, have rendered…

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Abstract

Purpose

The ongoing evolution of the Internet and the subsequent digitalisation of financial services, along with the ever-increasing innovation of financial products, have rendered consumers more vulnerable to a wider range of fraud in the banking sector and, particularly, to consumer financial fraud (CFF). This paper aims to analyse the factors that may contribute to CFF exposure and victimisation among Spaniards, with a special focus on financial literacy.

Design/methodology/approach

This paper provides a comprehensive overview of leading publications on the topic, followed by empirical analyses using regression models with a sample of 6,207 Spanish individuals drawn from the Survey of Financial Competences.

Findings

Objective and subjective financial knowledge are positively correlated with CFF exposure via email but do not protect against CFF victimisation. Similarly, financial knowledge overconfidence is positively related to the former but fails to constitute a driver of the latter. Financial inclusion, measured by the number of financial products held, not only increases the risk of this exposure but also contributes to its subsequent victimisation.

Originality/value

To the best of the authors' knowledge, no previous paper has analysed the relationship between CFF and financial literacy by differentiating two types of vulnerabilities to fraud (exposure and victimisation) while considering different constructs of financial literacy. Dissecting these two domains may explain why the same financial literacy construct can have different effects at both stages of financial fraud and, furthermore, how different financial literacy constructs may affect the same stage of financial fraud.

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Book part
Publication date: 14 March 2022

Rob van Tulder, Alain Verbeke, Lucia Piscitello and Jonas Puck

Crises are often studied in international business (IB) research as the external “context” for business strategies, but firms can also be active participants in the unfolding of

Abstract

Crises are often studied in international business (IB) research as the external “context” for business strategies, but firms can also be active participants in the unfolding of crises. The study of crises in IB could benefit greatly from studying the role of multinational enterprises (MNEs) as active participants, rather than as mere passive actors, responding to exogenous events. History shows that IB crises typically unfold partially as exogenous processes, and partly as the result of MNE strategies. A multilevel and longitudinal approach to studying crises in IB is clearly necessary. This chapter considers the extent to which smaller events that preceded the present crisis – since 1989 – point to systemic problems in global governance. It also defines five overlapping lenses through which future IB studies can further create relevant insights on how to deal with crises: historic, macro, meso, micro and exogenous. The chapter finally serves as an introduction to the whole Progress in International Business Research volume by indicating the relevance of all parts and chapters that follow.

Details

International Business in Times of Crisis: Tribute Volume to Geoffrey Jones
Type: Book
ISBN: 978-1-80262-164-8

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Book part
Publication date: 31 March 2015

Veronica Terriquez

This research examines how labor union involvement shapes the civic participation of low-wage Latino immigrant workers.

Abstract

Purpose

This research examines how labor union involvement shapes the civic participation of low-wage Latino immigrant workers.

Methodology/approach

Drawing on survey and semi-structured interview data gathered from a Los Angeles janitors’ labor union, I examine whether or not and how Latino immigrants apply their union experience to involvement in their children’s schools.

Findings

Results indicate that the union’s targeted member mobilization efforts produce unequal participation in union activities among immigrant workers, fostering civic and leadership skills among some and not others. At the same time, immigrant workers who do become involved in their union are then able to draw on their labor organizing and advocacy experience to address issues and concerns at their children’s schools. For some, worksite activism functions as a catalyst for newfound civic engagement; for other immigrant workers with prior civic experience in their country origin or in the United States, union involvement enhances their leadership capacity.

Originality/value

This empirical investigation shows how the experience of mobilizing for protests and participating in worksite campaigns allows Latino immigrant union members to overcome what are typically considered barriers to civic participation – that is, limited formal education, low occupational status, and limited English language skills. This study therefore suggests that labor union participation can have long-term effects on immigrants well beyond the benefits of a union contract.

Details

Immigration and Work
Type: Book
ISBN: 978-1-78441-632-4

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Available. Open Access. Open Access
Article
Publication date: 26 March 2024

Sergio de la Rosa, Pedro F. Mayuet, Cátia S. Silva, Álvaro M. Sampaio and Lucía Rodríguez-Parada

This papers aims to study lattice structures in terms of geometric variables, manufacturing variables and material-based variants and their correlation with compressive behaviour…

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Abstract

Purpose

This papers aims to study lattice structures in terms of geometric variables, manufacturing variables and material-based variants and their correlation with compressive behaviour for their application in a methodology for the design and development of personalized elastic therapeutic products.

Design/methodology/approach

Lattice samples were designed and manufactured using extrusion-based additive manufacturing technologies. Mechanical tests were carried out on lattice samples for elasticity characterization purposes. The relationships between sample stiffness and key geometric and manufacturing variables were subsequently used in the case study on the design of a pressure cushion model for validation purposes. Differentiated areas were established according to patient’s pressure map to subsequently make a correlation between the patient’s pressure needs and lattice samples stiffness.

Findings

A substantial and wide variation in lattice compressive behaviour was found depending on the key study variables. The proposed methodology made it possible to efficiently identify and adjust the pressure of the different areas of the product to adapt them to the elastic needs of the patient. In this sense, the characterization lattice samples turned out to provide an effective and flexible response to the pressure requirements.

Originality/value

This study provides a generalized foundation of lattice structural design and adjustable stiffness in application of pressure cushions, which can be equally applied to other designs with similar purposes. The relevance and contribution of this work lie in the proposed methodology for the design of personalized therapeutic products based on the use of individual lattice structures that function as independent customizable cells.

Details

Rapid Prototyping Journal, vol. 30 no. 11
Type: Research Article
ISSN: 1355-2546

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