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- Belu, Constantin, et al.
(författare)
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Strategic Corporate Social Responsibility and Economic Performance
- 2009
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- This paper studies the link between Corporate Social Responsibility (CSR) and economic performance of companies. Acknowledging the argument that companies might behave socially responsible strategically, i.e. favoring the CSR dimensions that provide competitive advantages, we construct a novel CSR index based on a Data Envelopment Analysis (DEA) model. We argue that this index accounts for CSR achievements from a strategic perspective, and use it to analyze the link between CSR and economic performance expressed by Return on Assets (ROA). When explicitly accounting for strategic behavior of companies, our findings reveal a significant positive relationship between CSR and economic performance.
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| 2. |
- Belu, Constantin, 1977, et al.
(författare)
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Strategic corporate social responsibility and economic performance
- 2013
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Ingår i: Applied Economics. - : Informa UK Limited. - 0003-6846 .- 1466-4283. ; 45:19, s. 2751-2764
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Tidskriftsartikel (refereegranskat)abstract
- This article proposes a novel Corporate Social Responsibility (CSR) index based on a Data Envelopment Analysis (DEA) model. Acknowledging the argument that companies might favour those CSR dimensions that provide strategic competitive advantages, we argue that the index can capture companies' strategic approach to CSR. Furthermore, our findings reveal a neutral relationship between this strategic CSR index and economic performance as measured by Return on Assets (ROA) and Tobin's Q, when controlling for firm unobserved heterogeneity and past economic performance. By contrast, an equally-weighted index of the same CSR indicators is found to be negatively related with ROA, which reinforces our claim that this specific DEA-based index is a measure of strategic CSR.
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| 4. |
- Manescu, Cristiana, 1984
(författare)
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Economic Implications of Corporate Social Responsibility and Responsible Investments
- 2010
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- Paper 1 (with Catalin Starica): This study conducts an in-depth analysis of the association between a unique ten-dimensional set of Corporate Social Responsibility (CSR) scores and firm profitability, as measured by Return on Assets (ROA). We find that non-linear (semi or non-parametric) regression methods bring important improvements in explaining profitability relative to a classical linear approach. While a number of CSR variables like corporate governance, talent attraction and codes of conduct might have some explanatory power, the CSR scores do not improve over the standard variables known to be associated with ROA. Paper 2 (with Constantin Belu): This paper proposes a novel Corporate Social Responsibility (CSR) index based on a Data Envelopment Analysis (DEA) model. Acknowledging the argument that companies might favor those CSR dimensions that provide strategic competitive advantages, we argue that the index can capture companies’ strategic approach to CSR. Furthermore, our findings reveal a neutral relationship between this strategic CSR index and economic performance as measured by ROA and Tobin’s Q, when controlling for firm unobserved heterogeneity and past economic performance. By contrast, an equally-weighted index of the same CSR indicators is found to be negatively related with ROA, which reinforces our claim that this specific DEA-based index is a measure of strategic CSR. Paper 3: Using detailed data on seven environmental, social, and governance (ESG) attributes for a long panel of large publicly-traded U.S. firms during July 1992-June 2008, only community relations were found to have had a positive effect on risk-adjusted stock returns, which effect was not compensation for risk but could be due to mispricing. Additionally, a changing effect of employee relations was found from positive during July 1992-June 2003 to negative during July 2003-June 2008. The positive effect could be due to mispricing, whereas there is some evidence that the negative effect was compensation for low non-sustainability risk. A weak negative effect of human-rights and product safety indicators on risk-adjusted stock returns in the more recent period was also found to be likely due to mispricing. The implications are that certain ESG attributes might be value relevant but they are not efficiently incorporated into stock prices. Paper 4: This paper investigates how annual abnormal returns react to current and past rating revisions in corporate responsible behavior in a panel data spanning 16 years. I find that increases in less responsible behavior led to persistent negative abnormal returns, which were particularly strong for the area of corporate governance, and weaker for product safety and the environment. These results are robust to concerns of endogeneity, i.e., that the negative stock price movements would lead to an update in the areas of social responsibility concerns. In contrast, increases in already strong responsible behavior did not generate a systematic reaction in stock returns.
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| 5. |
- Manescu, Cristiana, 1984
(författare)
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Is Corporate Social Responsibility viewed as a risk factor? Evidence from an asset pricing analysis
- 2009
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Using detailed data on corporate social responsibility (CSR) for a long panel of large publicly traded U.S. firms during July 1992-June 2008, this study investigates whether an overall measure of CSR, aggregated over seven dimensions (community, corporate governance, diversity, employee relations, environment, human rights, and product safety), can explain variation in stock returns, using Fama and MacBeth (1973) month-by-month cross-sectional regressions approach. Risk- factor analysis indicates a shift in the effect of CSR, with a positive effect on stock returns during July 1992 - June 2003, and a negative effect during July 2003 - June 2008. These results are robust even after controlling for ten industry-specific effects. Analysis on the disaggregated CSR measures reveals that it is only the Community and Employee Relations dimensions generating the positive e ect of CSR on stock returns during 1992-2003. The negative effect during 2003-2008 was mainly generated by the Human Rights, Product Safety, and Employee Relations dimensions. This constitutes evidence that these three CSR dimensions function as risk factors.
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| 6. |
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| 7. |
- Manescu, Cristiana, 1984
(författare)
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Stock Returns in Relation to Environmental, Social and Governance Performance: Mispricing or Compensation for Risk?
- 2011
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Ingår i: SUSTAINABLE DEVELOPMENT. - 0968-0802. ; 19:2, s. 95-118
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Tidskriftsartikel (refereegranskat)abstract
- Using detailed data on seven environmental, social and governance (ESG) attributes for a long panel of large publicly traded US firms during July 1992–June 2008, only community relations were found to have had a positive effect on risk-adjusted stock returns, which effect was not compensation for risk but could be due to mispricing. Additionally, a changing effect of employee relations was found, from positive during July 1992–June 2003 to negative during July 2003–June 2008. The positive effect could be due to mispricing, whereas there is some evidence that the negative effect was compensation for low non-sustainability risk. A weak negative effect of human rights and product safety indicators on risk-adjusted stock returns in the more recent period was also found to be likely due to mispricing. The implications are that certain ESG attributes might be value relevant but they are not efficiently incorporated into stock prices. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.
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