Download or read book Does Corporate Social Responsibility Create Shareholder Value The Importance of Long Term Investors written by Phuong-Anh Nguyen and published by . This book was released on 2017 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the effect of corporate social responsibility (CSR) on shareholder value. We argue that long-term investors can ensure that managers choose the amount of CSR that maximizes shareholder value. We find that long-term investors do increase the value to shareholders of CSR activities, not through higher cash flow but rather through lower cash flow risk. Following prior work, we use indexing by investors and state laws on stakeholder orientation for identification. Our findings suggest that CSR activities can create shareholder value as long as managers are properly monitored by long-term investors.

Download or read book Value Based Management with Corporate Social Responsibility written by John D. Martin and published by Oxford University Press. This book was released on 2009-08-19 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the first decade of the 21st century winds down we have seen a sea change in society's attitudes toward finance. The 1990s can best be described as the decade of shareholder supremacy, with each firm trying to outdo the other in their allegiance to shareholder value creation, or as it came to be known, Value-Based Management (VBM). No one seemed to question this culture as the rising firm valuations translated into vast wealth creation for so many. Three significant economic events have reshaped how the public feels about an unbridled devotion to VBM and have defined the last decade: the dot.com bubble in 2000, the infamous accounting scandals of 2001, and the collapse of the credit markets in 2007-2008. In all three of these events the CEOs were portrayed as reckless and greedy and Wall Street went from an object of admiration to an object of scorn. The first edition of this book, Value Based Management: The Corporate Response to the Shareholder Revolution was written to help explain the underpinnings of Value-Based Management. At the time of its publication, few questioned whether the concept was the proper thing to do. Instead, the debate was focused on how to implement a VBM program. With this new second edition, the authors look at VBM after having seen it through good times and bad. It is not their intent to play the blame game or point fingers. Nor is it their intent to provide an impassioned defense of VBM. Instead they provide an academic appraisal of VBM, where is has been, where it is now, and where they see it going.

Download or read book Institutional Ownership Horizon Corporate Social Responsibility and Shareholder Value written by Otgontsetseg Erhemjamts and published by . This book was released on 2019 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: A widely held view among policymakers, corporate executives and the media is that short-termism among institutional investors is increasingly prevalent. However, some institutional investors are increasingly vocal about taking a long-term approach, and these investors care about environmental, social and governance (ESG) issues. The reality is that investors are a diverse set of stakeholders with various objectives and time horizons. In the academic literature, empirical evidence on the relationship between institutional ownership horizon and corporate social responsibility (CSR) has been mixed. In this paper, we show that institutions with longer (shorter) investment horizons promote (discourage) CSR at the firm level. In addition, the higher the proportion of long-term (short-term) investors, the higher (lower) the effect of CSR on long-term (short-term) buy-and-hold returns. These findings are consistent with the view that short-termism on the part of institutional investors places short-term pressure on companies, and therefore discourages long-term investments that create value.

Download or read book Corporate Social Responsibility and Shareholder Value A Perfect Fit written by Anastazia Spajic and published by GRIN Verlag. This book was released on 2021-09-07 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2021 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, University of Applied Sciences Essen, language: English, abstract: In 1986, Rappaport published the book "Creating Shareholder Value", in which he described the shareholder value (SV) approach as a new standard for business performance. A quantitative, corporate ethical philosophy is addressed with the term "shareholder value", which has always been a matter of course for business investment theorists. Basically, shareholder value describes the mathematical maximization of the net present value of investments. This entrepreneurial approach was not viewed with skepticism on a global scale until the banking and financial crisis. An alternative approach was examined to overcome the banking and economic crisis. The corporate social responsibility (CSR) approach emerged, which was seen as a sustainable and pluralistic alternative. However, the CSR approach is viewed critically from a business perspective. It is questioned to what extent CSR actually influences on the economic success of a company. This will also be the subject of this essay. The aim is to show whether linking CSR and the SV approach creates a corporate strategy that generates monetary gains and represents a perfect fit.

Download or read book Hedge Fund Activism written by Alon Brav and published by Now Publishers Inc. This book was released on 2010 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hedge Fund Activism begins with a brief outline of the research literature and describes datasets on hedge fund activism.

Download or read book Corporate Social Responsibility and Shareholder s Value written by Leonardo Becchetti and published by . This book was released on 2007-08 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate social respon. (CSR) is increasingly a core component of corp. strategy in the global economy. While corp. are busy adopting & enhancing CSR practices, there is no established empirical research on CSR¿s impact & relevance in the capital market. This paper investigates this issue by tracing the market reaction to corp. entry & exit from the Domini 400 Social Index, recognized as a CSR benchmark, between 1990 & 2004. There are 2 main findings: a significant upward trend in absolute value abnormal returns, irrespective of the type of event, & a significant negative effect on abnormal returns after exit announce. from the Domini index. The latter effect persists even after controlling for concurring financial distress shocks & stock market seasonality.

Download or read book Encyclopedia of Corporate Social Responsibility written by Samuel O. Idowu and published by Springer. This book was released on 2013-01-27 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The role of Corporate Social Responsibility in the business world has developed from a fig leaf marketing front into an important aspect of corporate behavior over the past several years. Sustainable strategies are valued, desired and deployed more and more by relevant players in many industries all over the world. Both research and corporate practice therefore see CSR as a guiding principle for business success. The “Encyclopedia of Corporate Social Responsibility” has been conceived to assist researchers and practitioners to align business and societal objectives. All actors in the field will find reliable and up to date definitions and explanations of the key terms of CSR in this authoritative and comprehensive reference work. Leading experts from the global CSR community have contributed to make the “Encyclopedia of Corporate Social Responsibility” the definitive resource for this field of research and practice.

Download or read book The Case for Shareholder Capitalism written by R. David McLean and published by Cato Institute. This book was released on 2023-12-12 with total page 239 pages. Available in PDF, EPUB and Kindle. Book excerpt: Unlock the power of shareholder capitalism -- a system that transcends zero-sum games and Wall Street stereotypes. In its essence, shareholder capitalism enables mutually beneficial trade, a concept ingrained in our human history for over 300,000 years. This approach fosters specialization, fuels innovation, and propels economic growth. In this engaging new book, David McLean explains how embracing shareholder capitalism doesn't negate the significance of other institutions; rather, it allows businesses to excel in providing the goods, services, and jobs that make society better off. Shareholder capitalism isn't about disregarding stakeholders; it thrives on mutually beneficial partnerships, and managers are entrusted to maximize shareholder value, focusing on companies' long-term success, which drives overall prosperity. Profits, the ultimate measure of value, steer businesses toward creating goods and services that benefit society. While shareholder capitalism is the overarching theme in Finance 101 courses, it is increasingly criticized, especially with the popularization of concepts like ESG investing and stakeholder capitalism. McLean argues that corporate social responsibility, while well-intentioned, shouldn't replace the democratic process in policymaking, and can lead to unintended consequences. Our journey through capitalism, beginning around 1800, has brought unprecedented prosperity, and it's essential to safeguard this system for the betterment of society, with democracy and free trade as our guiding beacons.

Download or read book Socially Responsible Investments written by Mario La Torre and published by Springer. This book was released on 2018-12-27 with total page 173 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Palgrave Pivot aims to build a bridge between corporate social responsibility (CSR) and sustainable finance in financial markets. It investigates classic CSR topics in the light of a modern conception of sustainability. The first part emphasizes four relevant topics in the CSR panorama of financial institutions: banks remuneration practices; human capital disclosure; the impact of environmental performance on banks, and finally, the institutional investors’ attitude towards socially responsible investments (SRIs). The second part explores CSR practices within the financial markets and discusses risk-return profiles of SRI and non-SRI indexes in different time frames. It investigates whether thematic social responsible funds obtain different risk-return than traditional funds, and finally, assesses whether equity crowdfunding could foster social innovation. This book is aimed at scholars and students who are interested in social impact investing and practitioners involved in the social impact market.

Download or read book Socially Responsible Finance and Investing written by H. Kent Baker and published by John Wiley & Sons. This book was released on 2012-10-09 with total page 528 pages. Available in PDF, EPUB and Kindle. Book excerpt: A detailed look at the role of social responsibility in finance and investing The concept of socially responsible finance and investing continues to grow, especially in the wake of one of the most devastating financial crises in history. This includes responsibility from the corporate side (corporate social responsibility) as well as the investor side (socially responsible investing) of the capital markets. Filled with in-depth insights and practical advice, Socially Responsible Finance and Investing offers an important basis of knowledge regarding both the theory and practice of this ever-evolving area of finance. As part of the Robert W. Kolb Series in Finance, this book showcases contributed chapters from professionals and academics with extensive expertise on this particular subject. It provides a comprehensive view of socially responsible foundations and their applications to finance and investing as determined by the current state of research. Discusses many important issues associated with socially responsible finance and investing, like moral hazard and the concept of "too big to fail" Contains contributed chapters from numerous thought-leaders in the field of finance Presents comprehensive coverage starting with the basics and bringing you through to cutting-edge, current theory and practice Now more than ever, we need to be mindful of the social responsibilities of all investment practices. The recent financial crisis and recession has changed the financial landscape for years to come and Socially Responsible Finance and Investing is a timely guide to help us navigate this difficult terrain.

Download or read book Corporate Social Responsibility and Shareholder s Value written by Leonardo Becchetti and published by . This book was released on 2014 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: In today's global economy, corporate social responsibility (CSR) is a core component of corporate strategy. Due in part to financial scandals, losses, and the diminished reputation of the affected listed companies, CRS is emerging as a crucial instrument for minimizing conflicts with stakeholders. While corporations are busy adopting and enhancing CSR practices, there is (beyond a very few notable exceptions) no established empirical research on its impact and relevance for the capital market. Our paper investigates this issue by tracing market reactions to corporate entry into and exit from the Domini 400 Social Index (a recognized CSR benchmark) between 1990 and 2004. Our paper highlights two main findings: i) a significant upward trend in absolute values of abnormal returns, irrespective of the event (entry/exit vis-a-vis the index) type; and ii) a significant negative effect on abnormal returns after announcement from the Domini index. The latter effect continues to persist even after controlling for concurring financial distress shocks and stock market seasonality.

Download or read book Investor Engagement written by Roderick Martin and published by Oxford University Press. This book was released on 2007-07-05 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: The growth of shareholder value has been a major change in Western economies since the 1980s. This growth has reignited debates concerning relations between investors and managers. This book argues that investors are more than passive providers of finance, on whose behalf managers seek to maximize shareholder returns. Instead, many investors directly influence management practice, through investor engagement. The book examines the role of institutional investors and private equityfirms, two types of investors with overlapping but different reasons for engagement. Questions addressed include: What are the incentives, and disincentives, for investment engagement? How is investor engagement organized? What areas of management practice are of particular concern to investors? Thediscussion shows in detail how private equity firms play a major role in developing new companies, beyond the provision of finance, especially in the IT, biotechnology, and pharmaceutical sectors.The discussion is primarily based on British and US research. The debate has wider international relevance, because there are strong pressures for establishing shareholder value as the international 'norm' for systems of corporate governance. Following a detailed discussion of Germany, the authors conclude that there is no inevitable trend to shareholder value: shareholder value depends upon complementary institutional arrangements in national business systems, which are far from universal. Thebook concludes with a critical analysis of the justifications for shareholder value and investor engagement, highlighting the weaknesses of both efficiency and equity justifications.

Download or read book Sustainable Value written by Chris Laszlo and published by Routledge. This book was released on 2017-09-08 with total page 169 pages. Available in PDF, EPUB and Kindle. Book excerpt: A small but influential group of mainstream global industry leaders are now reinventing the role of business in society. They are shifting the focus away from minimizing negative impacts to offering new solutions to global problems that the public sector has been unable to tackle alone. In this new competitive environment, societal challenges such as climate change or the alleviation of global poverty are not only risks, but huge business opportunities, not only for niche players, but for mainstream business. These leaders are creating "Sustainable Value". They are creating it through the provision of value to both their shareholders and their stakeholders – an ever-growing list of diverse constituents impacted by the social, environmental, and financial performance of global business. In short, they are doing well by doing good. In this outstanding book, Chris Laszlo defines, illustrates, and shows how business can action 'Sustainable Value' in three profoundly different ways. First, a management fable looks at the experiences of a dynamic business leader as she grapples with the new business realities of managing stakeholder, as well as shareholder pressures. Second, with the real thing – inside stories from some of the largest corporations in the world that are successfully integrating sustainability into their core activities, not only from a sense of moral correctness, but because it makes good business sense. And, finally, with frameworks, tools, and methods that will make sustainable value creation concrete for business practitioners everywhere. This book is a masterful synthesis – part novel and part executive briefing – a refreshing kind of prophetic pragmatism, helping leaders anticipate and see the future in the context of the actual. In Sustainable Value Chris Laszlo speaks with resounding clarity to the living challenges, the real dilemmas, and haunting questions of CEOs everywhere.

Download or read book Putting a Price on Corporate Virtue written by Anastasia Giakoumelou and published by EGEA spa. This book was released on 2020-11-16T22:36:00+01:00 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt: It has been a buzzword for decades and gained the title of a global megatrend. With many endorsing and others discrediting its importance, what are the real economics of corporate social responsibility? How do we measure sustainability in corporations and who does it benefit? Is any effort appreciated by the market and the public? Is CSR merely in fashion or does it have a concrete place in a quantitative science such as finance? These are some of the questions this book deals with. We discuss the shift from a shareholder-oriented business world towards a stakeholder-oriented system and explore how CSR fairs with the traditional financial theories and corporate law. A new view of CSR sees it as a means to reconciliate the conundrum “shareholders or stakeholders” and gives a paradigm that combines the two. Furthermore, we move past the current belief that investors inject capital into more sustainable corporations while sacrificing returns and investigate the role of sustainability in a firm’s risk profile. What if investors gain less out of responsible investments because they risk less? In the second part of the book, we test how real market actors respond to corporate social performance. We look into the potential of CSR to be incorporated in risk valuations as performed by credit rating agencies, the debt market’s investors and corporate management itself. What we discover is a complex but intriguing reality that offers bright new horizons for corporations worldwide.

Download or read book Corporate Governance Around the World written by Ahmed Naciri and published by Routledge. This book was released on 2008-02-14 with total page 545 pages. Available in PDF, EPUB and Kindle. Book excerpt: The last Asian financial crisis, coupled with the western series of corporate scandals, has caused investors and citizens to doubt mangers ability to guarantee credible financial information about organizations. Consequently, legislators all over the world have come to realise the necessity of legislating in the area of corporate governance.

Download or read book Investing in Corporate Social Responsibility written by John Hancock and published by Kogan Page Publishers. This book was released on 2004 with total page 380 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rapid growth of ethical investment funds reflects a growing desire for investors to back socially responsible companies. And there are other sound reasons why companies that are seen to be ethical, environmentally friendly, good employers etc, can see real benefits to their bottom line. Recent revisions to stock market rules have made ethical funds available to a much wider group of advisors and investors. This important book explains the issues and the benefits of corporate social responsibility in the context of an analysis of the 300 quoted UK companies currently listed on the prestigious FTSE4Good index. Part One covers recent corporate ethics issues and the damage that revelations of dishonesty and unethical practice can do to stock markets. It explains how businesses can avoid these problems and why it is good to do so. The criteria whereby companies are seen to be 'socially responsible' and the growing importance of SR to investors and other stakeholders are addressed. The performance of the FTSE4Good index is studied, and there is analysis of how the sector compares to the general market. Part Two contains a full directory of the 300 companies listed on the FTSE4Good index, and tables showing how companies fit the criteria. This is followed by individual company profiles and company case studies including: Centrica, EMI, Friends Provident, Whitbread, National Express and National Grid.

Download or read book ESG and Responsible Institutional Investing Around the World A Critical Review written by Pedro Matos and published by CFA Institute Research Foundation. This book was released on 2020-05-29 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: This survey examines the vibrant academic literature on environmental, social, and governance (ESG) investing. While there is no consensus on the exact list of ESG issues, responsible investors increasingly assess stocks in their portfolios based on nonfinancial data on environmental impact (e.g., carbon emissions), social impact (e.g., employee satisfaction), and governance attributes (e.g., board structure). The objective is to reduce exposure to investments that pose greater ESG risks or to influence companies to become more sustainable. One active area of research at present involves assessing portfolio risk exposure to climate change. This literature review focuses on institutional investors, which have grown in importance such that they have now become the largest holders of shares in public companies globally. Historically, institutional investors tended to concentrate their ESG efforts mostly on corporate governance (the “G” in ESG). These efforts included seeking to eliminate provisions that restrict shareholder rights and enhance managerial power, such as staggered boards, supermajority rules, golden parachutes, and poison pills. Highlights from this section: · There is no consensus on the exact list of ESG issues and their materiality. · The ESG issue that gets the most attention from institutional investors is climate change, in particular their portfolio companies’ exposure to carbon risk and “stranded assets.” · Investors should be positioning themselves for increased regulation, with the regulatory agenda being more ambitious in the European Union than in the United States. Readers might come away from this survey skeptical about the potential for ESG investing to affect positive change. I prefer to characterize the current state of the literature as having a “healthy dose of skepticism,” with much more remaining to be explored. Here, I hope the reader comes away with a call to action. For the industry practitioner, I believe that the investment industry should strive to achieve positive societal goals. CFA Institute provides an exemplary case in its Future of Finance series (www.cfainstitute.org/research/future-finance). For the academic community, I suggest we ramp up research aimed at tackling some of the open questions around the pressing societal goals of ESG investing. I am optimistic that practitioners and academics will identify meaningful ways to better harness the power of global financial markets for addressing the pressing ESG issues facing our society.