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Management incentives for engaging and excelling in corporate social responsibility (CSR) performance is an important theme as business sustainability gains momentum. We examine the role of tournament incentives, which are created by competition among non-CEO (chief executive officer) senior executives (vice presidents [VPs]) for promotion to the CEO position, in firms' CSR performance. Using a sample of U.S. Standard & Poor (S&P) 1500 firms from 1993 to 2014, we find that tournament incentives proxied by pay gaps between CEOs and VPs are negatively associated with CSR performance, suggesting that competition for promotion could be detrimental for CSR performance. We further show that such association is more pronounced when the perceived probability of promotion increases prior to CEO turnover. This article provides policy, practical, and education implications and contribute to the literature on the integration of CSR into the business culture and strategic management processes. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to conduct a comprehensive literature review to examine the relationship between corporate governance characteristics and firms' engagement in environmental, social and governance (ESG) activities. The review focuses specifically on academic papers published in ranked accounting and finance journals. Design/methodology/approach: The analysis combines a structured literature review with citation analysis, topic modeling using a machine learning (ML) approach and a manual review of selected articles published between 2000 and 2021. Findings: This paper contributes to corporate governance and ESG literature by conducting an in-depth review, offering a comprehensive analysis of the existing findings and identifying future research directions. From the reviewed literature, this paper proposes the following thematic areas: board characteristics, ownership structure and their impact on a company's engagement in ESG activities; CEO characteristics and their influence on a company's involvement in ESG activities; corporate governance and ESG as sources for transparency and legitimacy; internal and external assurance of a company's involvement in ESG activities; and gender diversity and a company's involvement in ESG activities. Originality/value: The study provides a comprehensive understanding of corporate governance and ESG literature. The innovative combination of methods, including ML and manual techniques, enhances the ability to identify key research topics and uncover research directions in the field. Moving forward, this paper suggests several promising directions for future research, including examining the influence of emerging technologies on ESG reporting and assessing the impact of regulatory changes and context on the link between corporate governance and firms' involvement in ESG practices. [ABSTRACT FROM AUTHOR]

Corporate governance (CG) and corporate social responsibility (CSR) have gained considerable space in business management literature in recent times. Both these concepts share many commonalities and overlap in the day-to-day operational and strategic life of business organisations. The purported aim of both CG and CSR is to ensure that corporations behave ethically and responsibly and are governed strictly according to the law while interacting with and empowering all the stakeholders. Therefore, it is important to explore the potential commonalities and hurdles in achieving synergy between CG and CSR in the Indian context. Indian CG serves the monopoly corporations by tweaking the basic principle of a free market economy. It leaves workers, customers, the environment, society and other important stakeholders in the vagaries of predatory market forces. Similarly, CSR in India, like elsewhere, is used to hide the systematic vices of the corporate sector. The unholy nexus of corporates, politicians and bureaucrats is killing the essence of CG and CSR synergy. Therefore, a strong, effective, non-partisan, transparent and independent policy-making, institutional, regulatory, accounting and audit mechanism must be implemented to insulate all stakeholders from the tyranny of monopoly corporations. This article uses an argumentative analytical method to conceptualise and theorise the different aspects of CG and CSR in the Indian context. [ABSTRACT FROM AUTHOR]

This study investigates the influence of old directors on corporate social responsibility (CSR) using roughly 25,000 firm-year observations from 2001 to 2015 in the United States. We employ the widely used selection, optimization, and compensation (SOC) model from psychology to explain the CSR decisions of old directors. Our results indicate that firms with a higher percentage of old directors tend to have lower engagement in CSR activities. To address endogeneity, we adopt the difference-in-differences method and use the event of sudden deaths and unexpected retirements of old directors and find that our results remain robust. Our analysis also reveals that the negative impact of old directors on CSR is more significant in firms where directors receive fewer reputational spillover benefits from CSR initiatives and/or firms exhibiting poor corporate governance. In addition, this adverse impact of old directors comes from two effects: a reduction in efforts to enhance CSR strengths and an increase in inaction to address CSR concerns. Overall, these findings suggest that the CSR decision-making process of old directors involves assessing the costs and benefits of CSR engagements, consistent with our hypothesis derived from the SOC model. [ABSTRACT FROM AUTHOR]

Purpose: This study investigated how corporate social responsibility (CSR) impacts financial performance (FP) and examined the moderated role of corporate governance (CG). In particular, this paper aims to empirically examine the impact of CG on the relationship between CSR and FP. Design/methodology/approach: This study was based on a sample of 200 firms over 2010/2021. The direct and moderating effects were tested by using multiple regression techniques. Findings: The empirical findings indicated that companies with higher levels of CSR reporting invested more effectively than companies with lower CSR reporting levels. The empirical analysis suggested two main findings: CSR has a significant effect on FP, and this relationship depends on CG practices. This research presents new evidence that improves the discussion around CSR involvement and FP in French firms. Then, this research shows that CG positively moderates the impact of CSR on corporate FP. Originality/value: These findings may be of interest to academic researchers, practitioners and regulators interested in discovering dividend policies, FP and CSR. The findings may interest different stakeholders, policymakers and regulatory bodies interested in enhancing CG initiatives to strengthen CSR because it suggests implementing a broadly accepted framework of good CG practices to meet the demand for greater transparency and accountability. [ABSTRACT FROM AUTHOR]

Research Question/Issue: We examine the effect of multiple environmental, social, and governance (ESG) scores on institutional investor ownership of firms and investor portfolio weightings. We are also the first to analyze the three individual components of ESG rankings to estimate the relative preferences of institutional investors. Research Findings/Insights: Using a unique panel dataset covering US companies and institutional investor portfolios over the 2010–2019 period, we find that while investors are driven to add high‐quality ESG companies to their portfolios, there is a negative relationship with ESG when it comes to taking large ownership stakes. Furthermore, ESG scores are negatively related to the portfolio weightings of institutional investors, which raises concerns of greenwashing. Our analysis of individual ESG scores points to significantly larger effects of G scores in terms of holdings, and G is the only score with no negative impact on portfolio weightings. Finally, in support of systematic stewardship theory, top institutional investors allocate higher proportions of their portfolios to firms with high‐ESG ratings. Our results are robust to the use of a difference‐in‐differences analysis addressing endogeneity concerns. Theoretical/Academic Implications: The findings in this paper offer important policy implications for institutional investors, managers, and policymakers. Given the ongoing debate on ESG scores, this paper shows the importance of examining greenwashing for investors who have a concern regarding the extent to which the valuation of assets might be influenced by unsupported sustainability claims. In addition, our study adds to the debate regarding ESG investing and stewardship theory. [ABSTRACT FROM AUTHOR]

Employing an interim CEO is one of the key strategies organizations use to address urgent changes in leadership, yet there is a notable lack of attention in existing corporate governance literature regarding their impact on non‐market strategic behaviors. In an effort to bridge this gap, our study integrates institutional theory with impression management literature. Based on unbalanced panel data from Chinese non‐state‐owned listed companies from 2010 to 2019, the study finds that the succession of an interim CEO is associated with a simultaneous reduction in both corporate social responsibility (CSR) and corporate social irresponsibility (CSI) activities. The negative relationship between interim CEO and CSI activities is weaken in the context of high institutional voids. Mechanism analysis reveals that interim CEOs tend to focus more on the present and allocate more attention toward external stakeholder management strategies and low‐cost and efficiency strategies. Additional analysis indicates that in the face of negative financial performance aspirations, interim CEOs are more likely to reduce CSR activities. Similarly, when confronted with negative social performance aspirations, interim CEOs tend to decrease CSI activities to a greater extent. [ABSTRACT FROM AUTHOR]

This study combined the Latent Dirichlet Allocation topic model to explore the potential topics of new energy vehicle (NEV) policies and their impacts on the corporate social responsibility (CSR) of new energy vehicle enterprises. The results reveal that financial subsidies, infrastructure development, and environmental protection are the most popular topics. And these three popular topics have significant positive impacts on the CSR of new energy vehicle enterprises, with infrastructure construction having the most significant impact. Additionally, the intensity of the positive impact on large‐scale enterprises is more significant compared with small‐scale enterprises, and the impact on state‐owned enterprises is more remarkable than on private enterprises. Moreover, these three popular topics have more significant impacts on CSR in China's eastern region. Finally, we conclude this study by discussing the theoretical and practical implications of these findings. [ABSTRACT FROM AUTHOR]

Understanding the dynamics between external corporate governance mechanisms and social engagement offers insights into how corporate strategies towards social capital are shaped. We explore the impact of hostile takeover threats on corporate social engagement by utilizing a measure of takeover vulnerability. This allows for a detailed examination of how exposure to takeover threats influences firms' engagement in social engagement initiatives. Our analysis reveals a positive and causal relation between the degree of takeover threats and the level of social commitments in firms, suggesting that the presence of hostile takeover threats enhances corporate social responsibility as a means of external governance and reduces agency costs. The findings support the hypothesis that the threat of hostile takeovers prompts firms to invest more in social commitments, potentially as a strategic defense mechanism. [ABSTRACT FROM AUTHOR]

This research was conducted to prove that the economic welfare of the community is related to and has an influence on the existence of corporate social responsibility activities. The findings in this study assume the existence of the Covid-19 as a period that has an impact on the global crisis. The effects of the global crisis caused companies to experience a decline in net sales, and policies on corporate social activities changed. This study tries to link the variables of public ownership and net sales of companies to disclosure of social responsibility and the economic welfare of the community. The sampling design in this study uses a list of manufacture companies included in the Kompas 100 index list for two consecutive years, namely 2020 and 2021, which is the period when the health crisis in Indonesia began. The results of this study are that the variables of public ownership structure and net sales index have a significant relationship with social responsibility disclosure. However, the disclosure of social responsibility is not significant to economic welfare. Public ownership brings the company more attention from the surrounding community. Meanwhile, sales growth is used as a company measure to satisfy company owners and benefit the community. With company policies that benefit the community, supporting the government improves economic welfare. [ABSTRACT FROM AUTHOR]

Our study, which covered the years 2008 to 2022, aimed to create “autoregressive vectors” to investigate the interrelationships between corporate social responsibility (CSR), greenhouse gas net (GHG), human capital (HCPT), and human resources in Indonesia. We used data from the World Bank, OECD, and Bank Republic Indonesia to conduct an analysis of the correlation between these variables. Our results showed that there are significant relationships between corporate governance self-assessment (CGS), GHG, and HCPT in Indonesia. The positive correlation between GHG and CGS suggests that as GHG emissions increase, the level of corporate governance self-assessment also increases. This finding implies that companies that prioritize reducing GHG emissions tend to have better corporate governance practices. Moreover, investing in reducing GHG emissions can have a positive impact on human capital development. However, the negative correlation between HCPT and CGS implies that an increase in human capital may result in a decrease in the level of corporate governance self-assessment. This finding highlights the importance of balancing investments in human capital with maintaining good corporate governance practices to ensure sustainable economic growth. Furthermore, promoting corporate social responsibility can enhance companies’ reputation and increase their brand value, which can positively impact their CGS. Therefore, it is essential for companies to prioritize CSR practices, invest in human capital development, and reduce GHG emissions to ensure sustainable economic growth and maintain good corporate governance practices in Indonesia. [ABSTRACT FROM AUTHOR]

This research investigates the role of tax avoidance in the relationship between corporate governance, firm value, and corporate social responsibility. The research design is explanatory research, through hypothesis testing. 175 manufacturing companies were observed from 2017 to 2021, with a sample size of 875. A panel regression and leverage acted as a control variable using SPSS software, after conducting models and robustness tests. The findings show the influence of tax avoidance on institutional ownership and economic corporate social responsibility (CSR). Tax avoidance partially mediates the relationship between institutional ownership and firm value, and fully mediates between economic CSR and firm value. The implication for academics and practitioners is that enabling corporate governance requires institutional owners to supervise the determination of company managerial policies. Additionally, the economic CSR program can reduce tax avoidance and is responded to positively by investors. The limitations of the research are that for the constant value to be significant, additional variables should be added to the model. Further research could include adding company performance, gender, and intellectual capital variables. [ABSTRACT FROM AUTHOR]

Problems in the enforcement of tax criminal law involve normative vagueness related to corporate criminal liability in the context of tax crimes. Currently, criminal liability is directed only to individuals who are stewards or controllers of the corporation personally. This results in the main perpetrator in tax crimes are individual taxpayers, even though these crimes actually occur within the scope of operations of a corporation. In addition, the corporation itself cannot be criminally liable, nor can its shareholders. In the context of tax crimes that generally occur in a corporative environment and involve tax officials, there are normative obstacles in law enforcement against business entities involved in tax crimes. This study aims to develop recommendations to improve law enforcement practices for addressing corporate involvement in tax-related criminal activities effectively. The research method used in this study is normative juridical with research specifications, namely descriptive analytical, techniques for collecting legal materials with library research using primary, secondary and tertiary legal materials, analytical techniques used qualitative normative by combining induction and deduction reasoning. The results of this Dissertation research show that criminal liability for corporations in tax crimes regulated in Law No. 16 of 2009 concerning General Provisions and Tax Procedures which has been amended by Law No. 7 of 2021 concerning Harmonization of Tax Regulations, has not directly regulated criminal liability for corporations. Currently, criminal liability is only given to the management or controller of the corporation personally. [ABSTRACT FROM AUTHOR]

This study investigates the effect of audit quality, corporate governance, and Corporate Social Responsibility (CSR) on real earnings management. This study proxies corporate governance by audit committee size, independent commissioner proportion, managerial ownership, and institutional ownership. The population in this study is the manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2019-2021. The sampling method was carried out using a purposive sampling approach. This study obtained 236 observation data from 82 companies in Indonesia. The data was analyzed using regression analysis. The results of this study indicate that audit quality, managerial ownership and institutional ownership positively affect real earnings management. At the same time, the audit committee has a negative significant effect on real earnings management. However, the proportion of independent boards of commissioners and Corporate Social Responsibility disclosure does not affect real earnings management. This research shed light on the role of corporate governance mechanisms and CSR in real earnings management practices of Indonesian public companies. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the extent and trend of corporate social responsibility (CSR) disclosure by UAE listed banks and the impact of corporate governance mechanisms on this disclosure. Design/methodology/approach: Content analysis of banks' annual reports from 2009 to 2019 was applied to investigate the CSR disclosure level by constructing a disclosure index. Panel data regressions were applied to analyze the impact of corporate governance mechanisms on CSR disclosure. Findings: UAE banks show an improving trend in the CSR disclosures. In addition, the board of directors and ownership structure are significantly and positively associated with the CSR disclosures. The results vary across the banking systems. Research limitations/implications: This study considers the extent of the CSR disclosure in UAE banks' annual reports, and future research should consider more industries and communication channels. Practical implications: This study sheds light on the extent of the CSR disclosure of UAE listed banks and assists UAE policymakers in implementing appropriate corporate governance mechanisms. Social implications: The findings provide banks with a better understanding of the benefits of strengthening corporate governance to improve their CSR disclosure. Originality/value: This study contributes to the literature by constructing a more comprehensive disclosure index and examining the impact of corporate governance mechanisms on CSR disclosure by considering both the conventional and Islamic banking systems. [ABSTRACT FROM AUTHOR]

The European Commission's Directive on Corporate Sustainability Due Diligence, adopted in 2022 and approved in 2024, mandates that companies identify, prevent, and mitigate hostile human rights and environmental impacts across their operations and supply chains, integrating sustainability into corporate governance. This article examines the directive's influence on European entrepreneurial activity, ecosystems, and innovation using a qualitative descriptive literature analysis, comparative frameworks, impact assessments, policy recommendations, and case studies. Findings suggest that while the directive imposes compliance challenges and costs, particularly for startups and small and medium-sized enterprises, it offers significant long-term benefits, such as improved risk management, enhanced reputation, and market differentiation. The directive promotes accountability and ethical practices, harmonizing due diligence across the EU and fostering a culture of sustainability. It concludes that companies addressing these impacts can gain a competitive edge and attract sustainability-focused investors, necessitating support mechanisms for startups and small and medium-sized enterprises to mitigate burdens and encourage compliance. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to explore the relationship between integrated reporting (IR) and corporate social responsibility (CSR) in the context of South Africa, specifically exploring the mediating impact of board cultural diversity on this relationship. Design/methodology/approach: This study analyzed data from 107 companies operating in South Africa between 2010 and 2022 using the quantitative research method described by Preacher and Hayes (2008). Findings: The research findings illuminate the complex dynamics of cultural diversity on boards as mediators in integrating reporting practices and CSR initiatives. A more diverse board has been shown to mediate and strengthen the relationship between IR and CSR, leading to improved sustainability performance. Originality/value: These findings have practical implications for various stakeholders in the South African corporate environment, including boards of directors, policymakers and investors and emphasize the importance of promoting cultural diversity to promote corporate sustainability and social responsibility. Furthermore, these findings provide insights for creating inclusive and effective boards of directors capable of leading organizations toward more responsible and sustainable practices. [ABSTRACT FROM AUTHOR]

The impact of corporate governance mechanisms has been examined directly and independently, considering that such characteristics compete to explain environmental, social, and governance (ESG) performance. However, the nexus may be more complex than that suggested by most scholars, and more research is needed. This study applied a fuzzy-set qualitative comparative analysis to a sample of Spanish-listed companies in 2018–2020 to explore how good governance practices interact with CEO profiles to promote corporate sustainability practices. Our analysis discovered the importance of establishing sustainability committees and identified five pathways shaping governance practice bundles. Specifically, listed companies with a high code of good governance (GGC) compliance and a sustainability committee improve high ESG performance globally and for each ESG dimension. Furthermore, the effect is more relevant than the effect of the CEO profile, requiring either CEO duality (pathway 1) or extended CEO tenure (pathway 2). Concurrently, findings indicate three CEO profile configurations for GGC-neutral firms, providing companies with more flexibility in CEO selection. Two suggest that younger CEOs with longer tenure tend to be more motivated to engage in the G and S pillars (pathways 3 and 5). The third indicates that CEOs of older age and early tenure improve the E pillar (pathway 4). [ABSTRACT FROM AUTHOR]

The idea that companies and corporate governance should contribute to sustainability is gaining ever greater acceptance, but there is far less consensus on how exactly this is supposed to happen. The mainstream approach, and the one currently taken by the United Kingdom (“UK”), has been that shareholders (and especially institutional investors) should be informed so that they can press companies to bring their activities in line with the imperatives of sustainability. This is reflected in the emergence of Environmental, Social, and Governance (ESG) investment, in which investor preferences for companies that disclose good ESG performance or receive good ESG ratings from third-party agencies are supposed to steer companies toward more sustainable business. Since 2006, the UK’s approach to mandatory corporate non-financial and sustainability reporting has been narrowly financial, intending to inform shareholders so that they can steer companies to take more or less account of what we now call ESG matters. Despite the UK leaving the European Union (“EU”), it appears that many large UK companies will still have to follow the new EU sustainability disclosure rules, which extend further, requiring disclosure of stakeholder impacts. Moreover, some UK companies will have to follow EU rules on mandatory environmental and human rights due diligence in the near future. The EU has also proposed regulation of ESG rating providers that goes further than the UK’s recently published code of conduct. Beyond these developments, the UK’s corporate governance and stewardship codes pay lip service to questions of corporate purpose, sustainability, and ESG matters but remain primarily oriented towards shareholder value. [ABSTRACT FROM AUTHOR]

The present study investigates whether CEO initial tenure is essential in establishing CSR practices. In further analysis, we contemplate the consequences of CEO's initial service tenure CSR engagement. Our analysis is based on the sample of Chinese-listed firms from 2009 to 2019 periods—the research study used a fixed-effect panel approach for analyzing the dataset. A two-stage-least square test is then used to address the endogeneity problem. The study's findings manifest that CEO tenure is negatively and significantly associated with CSR practices. In an additional analysis, the study reveals that CEOs have more significant career concerns in the initial service period than afterward in their later service period. Therefore, CSR practices increase in CEO's initial service tenure. Moreover, the study documented that the CEO's CSR engagement in their initial tenure has a positive-and-significant association with their compensation package and lessens the risk of dismissals. Finally, we demonstrate that CEOs concentrate more on CSR practices in coastal regions of China. This research is helpful for policymakers in devising CSR policies and making corporate governance decisions. [ABSTRACT FROM AUTHOR]

To continually deepen Taiwan’s corporate governance and enhance corporate sustainable development, the Taiwanese government has developed sustainable policies and measures to achieve the net-zero goal. The study utilized data from a longitudinal multiple case study of 17 Taiwanese company’s employees to provide an overview of the impact of characteristics of leadership on Corporate Social Responsibility (CSR), green marketing orientation and firm performance in different industry (mainly service industry). This paper discovered that if the enterprise embraces a CSR concept, it tends to integrate green marketing into its operational thinking. Green marketing orientation might affect the relationship between CSR and firm performance. Furthermore, based on the resource-based theory, when the leadership styles of top- managers guided employees to understand the significance of green marketing orientation, may influence firm performance. [ABSTRACT FROM AUTHOR]

The research aims to analyze the influence of Chief Executive Officer (CEO) power factors on corporate social responsibility (CSR) disclosure by listed companies on the Vietnamese stock market. To examine the relationship between CEO power and CSR disclosure (CSRD), our study used the generalized method of moments (GMM) estimation method with panel data from 210 listed companies on the Vietnamese stock market during the period 2015–2022. The research results indicate that factors such as duality, tenure, share ownership, and CEO compensation reduce the level of CSR disclosure by companies. On the other hand, CEO education and age show a positive relationship with disclosure level. The empirical results of this study provide a solid foundation for managers to establish effective corporate governance mechanisms and enhance the quality of sustainable reporting by companies. [ABSTRACT FROM AUTHOR]

This study examines risk factors in mergers and acquisitions (M&As) identified in the recent literature, addressing the following question: "What risk factors associated with M&A transactions are discussed in the recent academic literature?" A semi-systematic literature review was conducted using a comprehensive search strategy with targeted keywords related to M&A risks. Papers from 2020 to 2024 were selected based on quality and relevance, with detailed review of abstracts and titles. Co-occurrence analysis using VOSviewer software (version 1.6.20) was applied to categorize key themes. The review of 118 papers identified four main risk categories: information asymmetry; performance and corporate reputation; litigation and investor protection; and geopolitical factors. Findings reveal complex interdependencies among these risks, highlighting the need for a holistic approach to risk management. Corporate social responsibility (CSR) is crucial for mitigating risks, improving transparency, and enhancing reputation. This study offers recommendations for better financial disclosures, robust environmental, social and governance strategies, and the integration of digital finance technologies as blockchain in M&A activity. Future research should include longitudinal studies on M&A risk dynamics, case studies on corporate governance, advanced valuation methods, and comparative analyses across regions and industries, focusing on emerging technologies like AI and blockchain. [ABSTRACT FROM AUTHOR]

This paper provides fresh insights into the impact of corporate governance mechanisms on environmental, social and governance (ESG) disclosure practices of state‐owned enterprises (SOEs). To accomplish this study's research objective, we collected ESG and corporate governance data from Refinitiv Eikon's database on a balanced sample of 253 SOEs from 37 worldwide countries over 5 years (2018–2022), obtaining a total of 1265 observations. A battery of fixed and random effects panel regression models has been estimated to test the impact of board characteristics, like board size, board independence, board gender diversity, number of board meetings, Chief Executive Officer (CEO) duality and the presence of a corporate social responsibility (CSR) committee, on overall and individual ESG disclosure scores of sampled SOEs. Results show that while board size and CEO duality negatively affect SOE ESG disclosure, board independence and gender diversity, as well as the number of board meetings and the existence of a CSR committee, exert a positive influence. [ABSTRACT FROM AUTHOR]

The establishment of green finance reform and innovation pilot zone (GFRIPZ) is a pivotal strategy for harmonizing the twin goals of economic prosperity and environmental preservation. By applying panel data on Chinese A-share listed firms from 2011 to 2022, this study examines the influence of China's green finance pilot policy on corporate environmental social responsibility (ESR) using a difference-in-differences (DID) model. The study's findings indicate that the green finance pilot policy promotes corporate environmental social responsibility. The results remain robust after a series of robustness tests. Moreover, mechanism analysis reveals that the pilot policy promotes firms' ESR through three key channels: financing constraints, green innovation, and corporate governance mechanisms. Additionally, analyst attention can positively moderate the promotional effect of the green finance pilot policy on corporate ESR. Furthermore, this study reveals that the green finance pilot policy's impact on corporate ESR is more pronounced among large-scale firms and firms operating in regions characterized by stringent environmental regulations and greater marketization. The empirical findings present evidence for enhancing ESR through the implementation of the green finance pilot policy in China and offer insights for refining the green finance system. [ABSTRACT FROM AUTHOR]

Copyright of Financial & Business Studies Journal / Maǧallaẗ Al-Dirāsāt Al-Māliyyaẗ wa Al-Tiǧāriyyaẗ is the property of Beni Suef University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We examine the effects of taxes on Corporate Social Responsibility (CSR). Employing a tax reform in Korea that imposed a new tax on cash retention, we find that treated firms improved CSR performance after the tax reform was enacted. This result is driven by improvement in environmental and social performance. Moreover, the observed improvement is more pronounced in treated firms that face less severe financial constraints, are afforded fewer investment opportunities, feature large foreign ownership stakes, and employ stronger corporate governance mechanisms. The results suggest that tax increases lead to an increase in CSR investment and the magnitude of the increase depends on firm-level characteristics. As such, our results support the tax-strategic view of CSR in a country that has been a latecomer in incorporating CSR practices into business operations. [ABSTRACT FROM AUTHOR]

Corporate transparency and business performance are strongly correlated, and publicly listed companies (PLCs) with excellent corporate governance adhere to high standards for disclosing key information and ensuring transparency. This study aims to investigate the connections between corporate governance transparency, CSR transparency, and financial transparency in relation to firm performance. The managers of PLCs in Malaysia are the primary respondents in this study. A quantitative research approach was employed by distributing a researcher-developed questionnaire via Google Forms. A total of 243 questionnaire responses were collected from managers of PLCs in Malaysia. The Statistical Package for the Social Sciences (SPSS) software was used to analyze the data. The findings suggest that corporate governance transparency, CSR transparency, and financial transparency have a significant impact on the performance of PLCs in Malaysia. Therefore, prioritizing organizational structure is crucial to enhancing company performance and increasing awareness of financial transparency in the workplace. [ABSTRACT FROM AUTHOR]

This study aims to analyze the impact of corporate governance on corporate social responsibility disclosure (CSRD) in Indonesia's mining sector during the 2014-2018 period. The study focused on 60 companies, selecting 30 through purposive sampling, resulting in 150 observations. Panel data regression was employed for analysis. Key findings include: First, board size (BSIZE) positively and significantly influences CSRD, suggesting that a larger board enhances diversity and improves oversight, aligning with agency theory. Second, board independence (IND) also positively impacts CSRD, indicating that independent directors encourage greater transparency in social and environmental responsibility disclosures, ensuring alignment with shareholder interests. Conversely, gender diversity on the board (DIV) and the audit committee (AC) do not significantly affect CSRD. The findings imply that the audit committee's focus on financial matters may limit its oversight of CSR activities. This study contributes to corporate governance and CSR literature in the mining sector, offering practical insights for companies to enhance CSR disclosure. [ABSTRACT FROM AUTHOR]

The present work seeks to explore the theme of Corporate Governance from its principles, namely: Transparency, Equity, Corporate Responsibility and Accountability. Thus, we seek to concisely present the definition and doctrinal understandings about Corporate Governance and its principle pillars. From the research it was possible to denote that the Corporate Governance system, from its principles, can bring a significant difference in the management of organizations, in particular, companies, and not only in its internal scope, but also with regard to to the interests of stakeholders. The work was based on a bibliographic review, based on the deductive method. [ABSTRACT FROM AUTHOR]

In the face of escalating social and environmental challenges, the integration of circular economy principles into corporate governance emerges as a vital strategy for enhancing CSR (Corporate Social Responsibility) and achieving sustainable development. In this way, the present study investigates the theoretical foundation of the circular economy benefiting CSR, explores the existing practices of corporate governance in terms of environmental safety, and offers specific recommendations regarding the integration of circular governance methods in current structures. Employing a mixed methodology approach that combines a literature review, this article provides an in-depth examination of the definitions, principles, and theoretical underpinnings of the Circular economy. The study uncovers the multifaceted benefits and challenges associated with operationalizing circular economy practices within corporate governance frameworks. Findings indicate that integrating circular economy principles into corporate governance not only strengthens CSR outcomes but also fosters innovation, stakeholder engagement, and long-term business resilience. This article contributes to the practical and academic discourse on sustainable development by providing a nuanced understanding of the intersection between circular economy, corporate governance, and CSR, and offering recommendations for businesses seeking to navigate the transition towards more sustainable and responsible practices. The research underscores the significance of holistic governance approaches in realizing the full potential of circular economy practices for enhancing CSR and driving sustainable business success. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to provide further insights into the connection between corporate social responsibility (CSR) and companies' credit ratings, while also exploring the role of corporate governance as a moderating factor. The hypotheses for this relationship are rooted in both legitimacy and stakeholder theories. Design/methodology/approach: Using a sample of French non-financial listed firms from 2007 to 2020, this paper uses the ordered probit model introduced by Greene (2000). The issue of endogeneity has also been addressed. Findings: The study reveals that CSR practices positively impact companies' credit ratings by enhancing solvency and financial performance. Specifically, firms that prioritize CSR, particularly in the social and environmental dimensions (such as community relations, diversity, employee relations, environmental performance and product characteristics), tend to have higher credit ratings and a reduced risk of default. This suggests that credit rating agencies likely incorporate CSR performance when assigning credit ratings. Furthermore, the quality of corporate governance acts as a moderator, strengthening the relationship between CSR and credit ratings. The findings remain robust even after accounting for key firm attributes and addressing potential endogeneity between CSR and credit ratings. Practical implications: This research provides valuable guidance for policymakers, corporate managers, investors and other stakeholders, as it offers insights into the influence of CSR activities on risk premiums and financing costs. For financial institutions, expanding credit decisions to encompass non-financial factors such as CSR can result in more accurate predictions of firm credit quality compared to relying solely on financial indicators. Originality/value: To the best of the authors' knowledge, this study stands out as the first to systematically examine the relationship between CSR and credit ratings within the French context. Moreover, it distinguishes itself by investigating the moderating influence of corporate governance on this relationship, setting it apart from prior research. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Research Question/Issue: This paper investigates whether and how millennial mutual fund managers differ from managers born in other generations in terms of environmental, social, and governance (ESG) orientation in portfolio choices and voting decisions. Research Findings/Insights: We find that millennial mutual fund managers hold portfolios that are more ESG oriented than do managers from other generations, consistent with anecdotal evidence suggesting that millennials are more driven by purpose than profits. Our findings suggest that the observed relationship is stronger when managers have more discretion over portfolio choices, that is, in active funds and funds with lower flow‐performance sensitivity. Furthermore, we find that millennial managers respond more strongly to social movements by reallocating assets into more socially conscious firms. We also find that millennial managers are more supportive of environmental proposals when their outcome is contested. Theoretical/Academic Implications: Our paper shows how cultural, political, and economic events, including social movements experienced by people of the same age cohort, shape preferences and beliefs and result in different investment strategies and voting among mutual fund managers. We also show how institutional constraints might limit managers' ability to impose their own preferences when investing or voting their shares. Practitioner/Policy Implications: Millennials are increasingly replacing older generations in managerial roles and investing in the stock market due to wealth transfers from their parents. This study offers insights to policymakers and investors interested in understanding the drivers of ESG investment. [ABSTRACT FROM AUTHOR]

Purpose: Exploiting a novel measure of hostile takeover exposure primarily based on the staggered adoption of state legislations, we explore a crucial, albeit largely overlooked, aspect of corporate social responsibility (CSR). In particular, we investigate CSR inequality, which is the inequality across different CSR categories. Higher inequality suggests a less balanced, more lopsided, CSR policy. Design/methodology/approach: In addition to the standard regression analysis, we perform several robustness checks including propensity score matching, entropy balancing and an instrumental-variable analysis. Findings: Our results show that more takeover exposure exacerbates CSR inequality. Specifically, a rise in takeover vulnerability by one standard deviation results in an increase in CSR inequality by 4.53–5.40%. The findings support the managerial myopia hypothesis, where myopic managers promote some CSR activities that are useful to them in the short run more than others, leading to higher CSR inequality. Originality/value: Our study is the first to exploit a unique measure of takeover vulnerability to investigate the impact of takeover threats on CSR inequality, which is an important aspect of CSR that is largely overlooked in the literature. We aptly fill this void in the literature. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the nexus of corporate governance with firms' financial risk-taking behavior under the corporate social responsibility (CSR) disclosures in the context of non-financial listed firms of an emerging economy. Design/methodology/approach: This study investigates the relationship between corporate governance as evaluated by an index and several financial risks, including idiosyncratic, default and systematic risks. The connection of corporate governance with financial risks is also studied while considering the moderation of CSR disclosures. The data are collected from 2014 to 2018 of 73 top 100-index listed non-financial firms of Pakistan Stock Exchange (PSX). Panel regression fixed effect and 2-step generalized method of moments techniques are applied to confirm the hypothesis along with the diagnostic tests to confirm that all outcomes of models must be authentic and reliable. Findings: The study's findings confirm that enhancing the overall corporate governance measures resulted in an augment in the firm's risk due to weak control and regulations prevailing in emerging economies. Moreover, CSR disclosures enhance stakeholder information, lessen information asymmetry about management policies and mitigate the risk associated with operational uncertainties. Practical implications: This study has a practical implementation to policymakers that effective monitoring and controlling measures facilitate the corporate management for minimizing the financial risks. Further, the study's findings shed light that implementing corporate governance measures is not enough to mitigate financial risks until supervisory measures in the form of CSR disclosures are not taken to analyse corporate governance effectiveness. Originality/value: This paper enhances the key findings in the literature by examining the role of corporate governance measures with respect to firms' financial risks considering the moderating role of CSR disclosures. Furthermore, this research adds to the body of knowledge regarding the implementation of monitoring measures that assist in the mitigation of firms' financial risks hence firm value. [ABSTRACT FROM AUTHOR]

We show the influence the size of a corporate board has on firms' ESG controversies. Our analysis suggests that businesses with larger boards are more effective in mitigating ESG controversies. Specifically, a rise in board size by one standard deviation results in a decline in ESG controversies by 4.30%. Our findings corroborate the anticipation that businesses need the board's advice to prevent ESG controversies. Thus, larger boards, with more human capital and more interactions with stakeholders, promote sustainability more effectively. Moreover, we find that the effect of board size is less pronounced during a stressful time but is more evident in companies with more agency problems. Further analysis validates the findings, that is, propensity score matching, entropy balancing, an instrumental‐variable analysis, and GMM dynamic panel data analysis. [ABSTRACT FROM AUTHOR]

Internal governance is the process by which vice presidents (VPs) use their influence with the chief executive officer (CEO) to impact the firm's direction and policy. This study examines the effect of internal governance on corporate social responsibility (CSR) performance. Based on a large sample of US firms and after controlling for various CEO incentives, corporate governance and other determinants of CSR performance, we find that more effective internal governance is associated with a better CSR performance. These results are robust to alternative internal governance and CSR measures, alternative samples and various approaches that mitigate potential endogeneity problems. Further analysis shows that the effect of internal governance on CSR performance is more pronounced when (a) the CEO is subject to more intensive monitoring, (b) VPs are more powerful, (c) firms experience less short‐term financial performance pressure and (d) they face stronger product market competition. This study advances our understanding of corporate governance's effect on CSR by showing the importance of internal governance. [ABSTRACT FROM AUTHOR]

Theoretical theories underpin the governance effect of directors' and officers' (D&O) liability insurance include agency costs and stakeholder interests. Motivated by mixed evidence on the corporate governance effects of D&O, we ask whether and how the directors' and officers' (D&O) liability insurance affects corporate social responsibility (CSR) performance in China, one of the largest and fastest growing economies in the world. We develop two contrasting hypotheses: (1) supervision and incentives versus (2) opportunism. To test these hypotheses, we rely on Chinese A‐share market data and fixed effect panel regressions, along with a battery of robustness checks, including Heckman sample selection bias, two‐stage least square instrumental variable (2SLS‐IV), difference‐in‐difference (DiD), propensity score matching (PSM) analyses. Consistent with supervision and incentives hypotheses and stakeholder theory, we find that D&O liability insurance significantly increases firm's CSR performance and firms renewing D&O liability insurance with the same insurers tend to have better CSR performance. Two possible mechanisms supporting this positive relation between D&O liability insurance and CSR performance are information transparency and accounting conservatism. Aside from theoretical contributions, our findings offer important practical contributions such as promoting D&O as external governance and ensuring the functions of D&O insurance comprehensively and correctly understood. Integrating D&O insurance with CSR can be viewed as an important business strategy by mitigating risks, enhancing reputation, ensuring legal compliance, and supporting responsible decision‐making. [ABSTRACT FROM AUTHOR]

Corporations significantly influence the public and political spheres. In light of this corporate power in society, academics have criticized the lack of legitimization (i.e., the legitimacy gap) and highlighted a potential divergence between corporate resource allocation and the needs and preferences of the public (i.e., the social issues gap). To address these problems, democratizing organizations has been proposed as a potential solution. In line with this, the authors argue that an increase in corporate power outside the economic realm should be counterbalanced by more democratic corporate governance (i.e., an internalization of democracy). While important groundwork exists, academic attention to these topics remains limited. The authors provide an overview of the literature linking corporate power and the claim for democratizing organizations, advocate for legitimization, identify research gaps, and develop a research agenda to inspire and guide future research efforts. The paper's findings suggest the importance of conceptual and empirical research on the micro‐, meso‐, and macro‐levels and the cross‐level effects, which is needed to advance this incipient research area. Future research must (1) clearly define corporate power and discuss how democratizing organizations can contribute to more legitimate organizational decisions, (2) unveil novel approaches for more democratic corporate governance, and (3) understand the organizational‐ and individual‐level factors necessary for the successful realization of democratic organizations. [ABSTRACT FROM AUTHOR]

Purpose — The study aimed to examine the impact of financial performance, good corporate governance, and corporate social responsibility on the value of SRI Kehati index companies during the COVID-19 pandemic, specifically from 2020 to 2022. Method — This study employs a causal quantitative analysis approach to determine the cause-and-effect relationship between the independent and dependent variables. Data were collected from the annual reports and sustainability reports of companies listed on the IDX and included in the SRI Kehati index during the COVID-19 pandemic. The analysis technique used in this study is panel data regression analysis, encompassing multiple companies and years. After data collection, Eviews 12 is used to process the data. Result — The findings of this study indicate that profitability has a significant impact on the value of SRI Kehati index firms. However, leverage, institutional ownership, and corporate social responsibility do not have a significant effect on the value of these companies. Novelty — The originality of this study stems from its sample, which consists of companies included in the SRI Kehati index listed on the IDX. The conclusions of this study also contradict earlier research. Previous studies have found that leverage, institutional ownership, and corporate social responsibility significantly impact firm value. However, in this study, these three factors did not affect company value. [ABSTRACT FROM AUTHOR]

This study advances the literature in cash holdings in that it empirically examines the impact of corruption prevention commitment (CPC) on the cash holding strategic decisions and how such CPC might interact with cash holdings to affect firm value. We employ a sample of UK non‐financial publicly listed firms and our results are of twofold. First, we detect a significant negative relationship between CPC and cash holdings, which is consistent with the expected governance effect of CPC. Second, we find a negative interaction of CPC with cash holdings when investigating cash holdings effect on firm value, suggesting that shareholders consider CPC as an overinvestment in corporate social responsibility (CSR) activity within a strong customer protection framework, such as the UK. Our findings are robust to different econometric estimations and controlling for different explanatory variables. This study offers beneficial perceptions into the notion of sustainability and sustainability standards and their implications on firms financing decisions. Finally, we argue that while this paper investigates the UK context, our results might be applicable to other countries with similar anti‐corruption structure as in the UK. [ABSTRACT FROM AUTHOR]

Scholars have examined the role of customer preferences, and demand-side characteristics more generally, in varied core strategy areas like market entry and timing, diversification, positioning, resource reallocation, and firm adaptation, among many others. We review this diverse demand-side literature and develop an empirical classification that identifies five archetypical customer value-creation logics seen in the literature to date. To apply each of these logics, a firm must look downstream with the intent of matching, leveraging, adapting, learning, or shaping customer preferences or market characteristics to create value for customers. For each value-creation logic, we detail the logic itself, how the demand side is characterized, how specific strategic decisions allow for value creation following the logic, literature gaps in the logic, and opportunities for future research. Opportunities include extending the work on existing logics, examining the combined effects of multiple logics, identifying understudied demand-side characteristics, and studying strategy applications for which demand-side attributes have received comparatively little attention to date. These include business models, corporate social responsibility (CSR), corporate governance, and demand-side shocks. Finally, we address implications for managerial practice. [ABSTRACT FROM AUTHOR]

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As some of the largest institutional investors in the United States, public pension funds wield considerable power over inuestment decisions. A recent trend highlights this extraordinary power: state pension funds have started exploiting their retirees ' pensions to force inuestment companies to invest in accordance with their respective states' political priorities. Nowhere is this trend more obvious than in the environmental, social, and governance field. On one hand, states like Maine haue passed legislation prohibiting publicpension funds from inuesting in fossil fuels companies. On the other hand, states like Texas haue passed laws prohibiting state entities from doing business with companies that oppose the fossil fuel and gun manufacturing industries. Investment companies operating across state lines are therefore caught between a rock and a hard place : continue investing in fossil fuels and risk antagonizing liberal states like Maine or diuest from fossil fuels and lose business from conseruatiue states like Texas. Pension funds can exploit public retirees' funds for political ends because of a subtle fiduciary orientation surrounding public pension funds. Whereas private pension funds are governed by uniform federal laws that center fiduciary duties around pension plan participants and beneficiaries, public pension funds are governed by a patchwork of state laws that center fiduciary duties around the funds themselves. Thus, states are free to tailor their own pension fund investment rules as they see fit, sometimes at the expense of retirees. The result is an assortment offifty different legal systems, piled on top of the recent trend toward politicizing inuestment decisions. Often, as the cases of Texas and Maine show, investment companies will find themselves unable to simultaneously comply with the various public pension fund requirements from state to state. Moreover, because state treasurers exercise almost unbridled discretion ouer inuestment allocations, they can all but freely abuse pensions funds in pursuit ofpolitical ends. With trillions of dollars under management, retirees stand to lose the most. This Noteargues thatpublicpension inuestment laws need urgent reform and standardization to prevent sacrificing retirees' financial security in seruice Of Political priorities. To do so, state legislatures should pass laws modeled after the Employee Retirement Income Security Act of 1974, which governs private pension plans. Such standardization will ease the burden of compliance for investment companies and inuestment aduisers while simultaneously forcing pension fund managers to prioritize retirees' pecuniary gains. [ABSTRACT FROM AUTHOR]

In this paper, we investigate whether reform of EU company law is needed to make corporate governance more sustainable. We also consider some issues to which the EU proposals on company law and sustainability paid scant attention, such as the role of corporate governance codes and other types of soft law, mainly of international origin, in promoting sustainable governance. In addition, we underline that in recent years the EU has adopted several measures which offer better prospects for sustainable governance than the reform of directors' duties the EU is currently debating. We conclude that the failure to take corporate governance codes and the existing regulatory framework into account could seriously impair pending reforms of directors' duties and their link to sustainability. [ABSTRACT FROM AUTHOR]

ESG ratings, as a metric for assessing corporate social responsibility, have garnered escalating interest from both domestic and international investors within China. However, critical indicators for augmenting ESG scores remain underexplored. Utilizing data from 2017 to 2020 on CSI 300 and CSI 500 constituent stocks, this study employs advanced machine learning algorithms, including XGBoost (XGB), LightGBM (LGB), and Random Forest (RF), to conduct a quantitative analysis of corporate feature values and their correlation with institutional rating outcomes. The findings indicate a predominant influence of corporate governance indicators, particularly in the realm of information disclosure, followed by social responsibility and environmental metrics. The paper further delineates specific, actionable short-term and long-term strategies that corporations can adopt across environmental, social, and governance dimensions, tailored to the nuances of various sub-indicators. [ABSTRACT FROM AUTHOR]

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The purpose of this study is to test whether sustainability reporting leads to better performance and creates value for investors in developing markets. This study examined the 32 Bangladeshi banks. The generalized method of moments (GMM) is used to analyze this study. Ordinary least square (OLS) is used for robustness check in this study. The finding of this study shows that there is a significant corporate social responsibility (CSR) and a negative association between environmental, social, and corporate governance (ESG) scores and bank performance of Bangladeshi banks. The result of ESG indicates that environmental, social and governance performances reduce both banks' profitability and values. The results of the research show that ESG has a significant CSR, insignificant ED and CG and negative impact on the performance of banks and the economic benefits of shareholders. Unfortunately, this study also shows that there is no relationship between environmental disclosure, corporate governance (ECG) and bank performance (ROE). Finally, this study provides a policy implication and future guidelines to all stakeholders. [ABSTRACT FROM AUTHOR]