scholarly journals Corporate Social Responsibility and Bond Price at Issuances: U.S. Evidence

2021 ◽  
Vol 13 (23) ◽  
pp. 13123
Author(s):  
Hong Zhao ◽  
Wei Du ◽  
Hao Shen ◽  
Xinting Zhen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Bond ◽  
Community Relations ◽  
Yield Spread ◽  
Governance Mechanism ◽  
Bond Price ◽  
Negative Relation ◽  
Bond Yield ◽  
Corporate Social

Bondholders are arm’s-length lenders with limited insider information. In this paper, we explore whether corporate social responsibility (CSR) activities could work as an information channel for bondholders to better understand the riskiness of bond-issuing firms. We find a significant negative relation between CSR scores and corporate bond yield spread, especially for firms which invest heavily in diversity and community relations, suggesting that CSR firms are less risky. The result is robust to different model specifications and endogeneity issues. In addition, the negative relation between the CSR score and bond yield spread is significant only if a firm has a strong internal governance mechanism.

scholarly journals Corporate Social Responsibility and Rule 144A Debt Offerings: Empirical Evidence

2018 ◽  
Vol 6 (4) ◽  
pp. 94 ◽  
Author(s):  
Wassim Dbouk ◽  
Dawei Jin ◽  
Haizhi Wang ◽  
Jianrong Wang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Institutional Investors ◽  
Simultaneous Equation ◽  
Securities And Exchange Commission ◽  
Yield Spread ◽  
Bond Yield ◽  
Variable Approach ◽  
Social Environmental ◽  
Corporate Social

Rule 144A allows a firm to issue securities without a public registration statement with the Securities and Exchange Commission, and only qualified institutional investors can purchase such securities. In this study, focusing on corporate bonds issued under Rule 144A, we empirically investigate the relationship between the corporate social responsibility (CSR) of issuing firms and the bond yield spread at issuance. We document a significant and positive relation between CSR concerns, whereas CSR strengths seem to play an insignificant role in determining bond yield spread. Our main findings are robust to the instrumental variable approach and simultaneous equation estimation to address the potential endogeneity issues. We further explore the time-series changes in issuing firms’ CSR profiles, and report that institutional investors demand a higher bond yield spread when issuing firms’ exposure to higher social, environmental, and stakeholder concerns. Our analyses reveal that the main sources of such risk exposure are stakeholder conflict and concerns from primary stakeholder groups.

Do participants in the bond market care about corporate social responsibility? Evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jun Hu ◽  
Wenbin Long ◽  
Yu Wang ◽  
Linzi Zhou
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Bond Market ◽  
Economic Consequences ◽  
Corporate Bond ◽  
Bond Pricing ◽  
Content Type ◽  
Market Participants ◽  
Risk Environments ◽  
Corporate Social

PurposeUsing a sample of listed Chinese companies that issued bonds from 2010 to 2019, the authors empirically test the link between CSR and corporate bond pricing, and the mechanism and channels behind this link.Design/methodology/approachThis study systematically examines whether and how corporate social responsibility (CSR) affects the corporate bond market in China.FindingsFirms with better CSR have higher corporate bond credit ratings and lower corporate bond yield spreads. These associations remain stable in robustness checks, including checks that use regional typhoon disaster as an instrumental variable. The effects of CSR are more significant for firms with a worse information environment and for those operating in high-risk environments. Better CSR is associated with less earnings management, fewer financial restatements and less analyst forecast divergence. In addition, the effects of CSR are more pronounced after the 2013 market-oriented reform and when issuers are non-state-owned enterprises.Practical implicationsBecause market participants can incorporate firms' CSR into their decision-making, establishing an effective channel for communicating CSR between issuers and market participants will enhance the effects of CSR.Social implicationsResearchers need to attend to the mechanisms behind the link between CSR and corporate bond pricing, and to the characteristics of strong environmental contingency in emerging markets, specifically the periods and scenarios in which the effects of CSR change.Originality/valueThis study provides systemic evidence that CSR benefits corporate bond pricing through both informational and reputational channels and that the effects of CSR vary by time and firm. These findings enrich the literatures on both the economic consequences of CSR and the determinants of corporate bond pricing, and provide a plausible explanation for mixed findings on the effects of CSR in previous studies.

scholarly journals Aktivitas Public Relations dalam Mengelola Citra di Industri Financial Technology

2020 ◽  
Vol 12 (2) ◽  
pp. 285-300
Author(s):  
Kevin Zaprilan Lovis
Keyword(s):  
Corporate Social Responsibility ◽  
Public Relations ◽  
Social Responsibility ◽  
Brand Management ◽  
Customer Relations ◽  
Community Relations ◽  
Media Relations ◽  
Government Relations ◽  
Corporate Social ◽  
Financial Technology

Citra perusahaan yang baik di mata publik menjadi salah satu faktor yang harus diperhatikan di tengah persaingan bisnis saat ini. Bagi perusahaan fintech lending yang bergerak pada layanan keuangan dan beroperasional secara online, trust dan citra positif dari pengguna atau calon pengguna menjadi hal yang penting. Membangun trust dan citra positif merupakan fungsi dari public relations dalam sebuah perusahaan. Melalui penelitian ini akan dilihat bagaimana praktisi public relations Investree menjalankan aktivitas PR dalam rangka mengelola citra perusahaan. Penelitian ini menggunakan paradigma interpretif dan pendekatan kualitatif, dengan wawancara sebagai metode utama dalam pengumpulan data. Hasil penelitian menunjukkan bahwa posisi PR di Investree sudah dijalankan secara strategis dengan aktivitas PR yang paling dominan dilakukan adalah media relations, customer relations, dan content and brand management. Akan tetapi, aktivitas lainnya seperti community relations, government relations, corporate social responsibility dan lain sebagainya juga dilakukan oleh tim lainnya dalam departemen Marketing & Communications. Selanjutnya, semua tools PR juga telah dimanfaatkan oleh tim PR Investree, mulai dari controlled PR, uncontrolled PR, dan juga semi-controlled PR, termasuk salah satunya adalah media sosial dalam mengelola citra positif di mata publik. Kata Kunci: Citra, Public Relations, Fintech Lending, Media Relations, PR Tools

scholarly journals Corporate Governance and Corporate Social Responsibility: Evidence from the Role of the Largest Institutional Blockholders in the Korean Market

2020 ◽  
Vol 12 (4) ◽  
pp. 1680 ◽  
Author(s):  
Daeheon Choi ◽  
Paul Moon Sub Choi ◽  
Joung Hwa Choi ◽  
Chune Young Chung
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism ◽  
Corporate Social ◽  
Long Term Performance ◽  
Term Performance ◽  
Korean Market

This study investigates the monitoring effectiveness of the largest institutional blockholder in Korea, the Korean National Pension Service (KNPS), on firms’ engagement in corporate social responsibility (CSR). We use a large, unique sample from Korea, where the financial market is primarily characterized by chaebols. We show that lagged KNPS blockholdings do not significantly influence investee firms’ concurrent CSR indexes. This result indicates that even the largest institutional blockholder in Korea does not actively engage in firms’ CSR initiatives to enhance their long-term performance and prosperity. Overall, our results suggest that institutional investors should more actively serve as an effective corporate governance mechanism in emerging Asian markets, where companies aim to be profitable and long-term corporate governance is very important.

Is a firm’s financial risk associated with corporate social responsibility?

2015 ◽  
Vol 53 (9) ◽  
pp. 2175-2199 ◽  
Author(s):  
Feng Jui Hsu ◽  
Yu-Cheng Chen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Distress ◽  
Financial Risk ◽  
Social Performance ◽  
Earnings Forecasts ◽  
Corporate Bond ◽  
Fiscal Year ◽  
Content Type ◽  
Corporate Social

Purpose – The purpose of this paper is to examine whether socially responsible firms behave differently from other firms in terms of financial risk using US-based firms from 1991 to 2012. Design/methodology/approach – The authors used the KLD social performance rating scores as the measure of corporate social responsibility (CSR) performance and obtained an initial sample of 38,158 firm-year observations from 1991 to 2012. The authors obtained the monthly consensus earnings forecast for fiscal year one and the monthly dispersions for these earnings forecasts from I/B/E/S, and the bond spread from DataStream database. Specifically, the authors question whether firms that exhibit CSR obtain market approval to reduce financial risk, thereby providing investors and regulators with more reliable and transparent financial information, as opposed to firms that do not meet the same criteria. Findings – The authors find that social responsible firms usually perform better in terms of their credit ratings and have lower credit risk, in terms of loan spreads when compared to corporate bond spreads, and in terms of distance to default. The results control for various measurements for CSR and time periods, consider various CSR dimensions and components, and use alternative proxies to improve the quality of financial risk estimates. Originality/value – The findings demonstrate the importance of considering both positive and negative CSR performance. Positive CSR ratings are associated with reduced financial risk while negative CSR performance scores lead to increased financial distress. Investors respond to positive CSR ratings.

scholarly journals PELAKSANAAN CORPORATE SOCIAL RESPONSIBILITY PT. INDONESIA POWER UPJP KAMOJANG

2019 ◽  
Vol 8 (2) ◽  
pp. 195
Author(s):  
Cita Insaniah Muhammad ◽  
Santoso Tri Raharjo ◽  
Risna Resnawaty
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Industrial Revolution ◽  
Community Services ◽  
Community Relations ◽  
Primary Data ◽  
Positive Contribution ◽  
Literature Study ◽  
The Public ◽  
Corporate Social

ABSTRACT The concept of corporate social responsibility has been around for thousands of years. The concept of corporate social responsibility has increasingly developed at the beginning of the industrial revolution which began to focus on the problem of corporate responsibility. The implementation of CSR is considered as an effort to create good companies in the public eye. John Elkinkon through the concept of "3P" (profit, people and planet) as a way for companies to survive by making a positive contribution to society (people) and actively taking part in preserving the environment (planet). Budimantara also explained the type of CSR implementation, namely community relations, community services, and community empowering. This study uses the literature study method as an analytic tool. The data used are primary data from interviews and student data.  ABSTRAK Konsep corporate social responsibility sudah ada sejak ribuan tahun yang lalu. Konsep corporate social responsibility  ini semakin berkembang pada awal masa revolusi industri yang mulai berfokus pada masalah tanggung jawab perusahaan. Pelaksanaan CSR dianggap sebagai upaya untuk menciptakan baik perusahaan dimata publik. John Elkinkon melalui konsep “3P” (profit, people, dan planet) sebagai cara bagi perusahaan ingin bertahan dengan memberikan kontribusi positif kepada masyarakat (people) dan ikut aktif dalam menjaga kelestarian lingkungan (planet). Budimantara juga menjelaskan tipe pelaksanaan CSR yaitu community relations, community services, dan community empowering. Penelitian ini menggunakan metode studi literatur sebagai tools analysist. Data yang digunakan data primer dari wawancara dan data sekuder.

scholarly journals The Mediating effect of Corporate Social Responsibility and Dividend Policy on the Effect of Corporate Governance Mechanism on Firm Value among Publicly Listed Companies in the Philippines

2019 ◽  
Vol 8 (6S) ◽  
pp. 602-605
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
The Philippines ◽  
Mediating Effect ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanism ◽  
Corporate Social

— Corporate social obligation has become an vital part of commercial company exercise during the last decade or so. In fact, many businesses dedicate a phase of their annual reports and company internet web sites to CSR activities, illustrating the importance they attach to such sports. On the opposite hand, Good company governance exercise has a number of observable outcomes on economic results of the company. Corporate governance recommendations are strongly associated with income quality or the quantity to which the firm’s disclosed economic basic performance reflects its right performance. This have a look at investigates in the main the mediating effect of Corporate Social Responsibility and Dividend Policy on the impact of corporate governance mechanism on firm value amongst publicly listed organizations inside the Philippines. It examined forty seven publicly indexed businesses inside the Philippines for a four-yr period from 2013 to 2016. A structural equation modeling (SEM) approach changed into used for the evaluation. Results show that Corporate Social Responsibility does not act as a mediating variable with regards to company governance mechanisms to firm rate. It manner that CSR does now not act as a variable so one can give a boost to corporation governance mechanisms that during developing the charge of the commercial enterprise corporation. Also, dividend coverage does no longer act as mediating variable at the effect of enterprise governance mechanisms on company value. Finally, the end result confirmed that there is a terrible but large effect of dividend price on business enterprise value.

scholarly journals Do Political Connection and Corporate Governance Mechanism Increase Corporate Social Responsibility Disclosure?

2021 ◽  
pp. 28-46
Author(s):  
Yeterina Widi Nugrahanti
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Institutional Ownership ◽  
Political Connection ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

The objective of this study is to investigate the impact of political connection and corporate governance mechanisms (independent board of commissioner, institutional ownership, and board of commissioner size) toward Corporate Social Responsibility (CSR) disclosures using Global Reporting Initiative (GRI) Guidelines. Purposive sampling technique was conducted and 272 non-financial companies listed in the Indonesian Stock Exchange during 2015-2017 were acquired as the samples (816 firm-years). For testing the hypotheses, unbalanced Generalized Least Square panel data regression was employed. The finding shows that political connection and board of commissioner size have a positive impact on CSR disclosures while independent board of commissioner and institutional ownership do not. This study contributes to political connection, corporate governance mechanism, and CSR disclosure literature by identifying CSR disclosure based on GRI guidelines up to the most detailed level, which are 77 disclosure items indicators and 254 sub-indicators. Meanwhile, previous research only identify CSR disclosure up to 77 GRI indicators without paying attention to the sub-indicators in detail.

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