To engage or not to engage in corporate social responsibility: Empirical evidence from global banking sector

Economic Modelling

Volumn 55, Issue , 2016, Pages 207-225

  Shen, Chung Hua ^a,b   Wu, Meng Wen ^c   Chen, Ting Hsuan ^d   Fang, Hao ^e  

^a HUNAN UNIVERSITY   (China)

^b SHIH CHIEN UNIVERSITY   (Taiwan)

^c NATIONAL TAIPEI UNIVERSITY   (Taiwan)

^d NATIONAL TAICHUNG UNIVERSITY OF SCIENCE AND TECHNOLOGY   (Taiwan)

^e HWA HSIA INSTITUTE OF TECHNOLOGY   (Taiwan)

Author keywords

Corporate social responsibility; Financial performance; Heckman's two step method; Matching method

Indexed keywords

EID: 84959309388     PISSN: 02649993     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.econmod.2016.02.007     Document Type: Article

References (72)

1. Abadie A., Imbens G. Simple and bias-corrected matching estimators for average treatment effects. NBER Technical Working Paper No. 283 2002.
2. Abadie A., Imbens G.W. Large sample properties of matching estimators for average treatment effects. Econometrica 2006, 74(1):235-267.
3. Abadie A., Drukker D., Herr J.L., Imbens G.W. Implementing matching estimators for average treatment effects in Stata. Stata J. 2004, 4:290-311.
4. Alexander G.J., Buchholz R.A. Corporate social responsibility and stock market performance. Acad. Manag. J. 1978, 21:479-486.
5. Anderson L., Longenbach G. Corporate Social Responsibility Analysis 2010, Standard Chartered Bank, (https://lehighglobalstudy.wikispaces.com/file/view/SCB+Deliverable.docx/112867075/SCB+Deliverable.docx).
6. Aupperle K., Carroll A., Hatfield J. An empirical examination of the relationship between corporate social responsibility and profitability. Acad. Manag. J. 1985, 28(2):446-463.
7. Barth J.R., Caprio G., Levine R. Rethinking bank regulation: till angels govern 2006, Cambridge University Press, New York.
8. Becchetti L., Ciciretti R., Hasan I. Corporate social responsibility and shareholder's value: anevent study analysis. FRB Atlanta Working Paper 2007-06, Federal Reserve Bank of Atlanta 2007.
9. Bragdon J.H., Marlin J.A.T. Is pollution profitable?. Risk Manage. 1972, 19(4):157-169.
10. Brammer S., Millington A. Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strateg. Manag. J. 2008, 29:1325-1343.
11. Brønn P.S., Vrioni A. Corporate social responsibility and cause related marketing: an overview. Int. J. Advert. 2001, 20(2):207-222.
12. Caliendo M., Kopeinig S. Some practical guidance for the implementation of propensity score matching. J. Econ. Surv. 2008, 22(1):31-72.
13. Carroll A.B. Corporate social responsibility. Business and Society 1999, 38(3):268-295.
14. Chaouani S. Using propensity score matching and estimating treatment effects: an application to the post-issue operating performance of french IPOs. Int. Res. J. Finance Econ 2010, 48:73-93.
15. Chih H.L., Chih H.H., Chen T.Y. On the determinants of corporate social responsibility: international evidence on the financial industry. J. Bus. Ethics 2010, 93(1):115-135.
16. Clatworthy M.A., Makepeace G.H., Peel M.J. Selection bias and the big 4 premium: new evidence using Heckman and matching models. Account. Bus. Res. 2009, 39(2):139-166.
17. Cornell B., Shapiro A. Corporate stakeholders and corporate finance. Financ. Manag. 1987, 16(Spring):5-14.
18. Cuesta-González M., Muñoz-Torres M., Fernández-Izquierdo M.Á. Analysis of social performance in the Spanish Financial Industry through public data. A proposal. J. Bus. Ethics 2006, 69(3):289-304.
19. Cui J., Jo H., Na H. Does corporate social responsibility reduce information asymmetry? http://fsinsight.org/docs/download/research-paper-cui-jo-na-does-csr-reduce-information-asymmetry.pdf.
20. Curran M.M., Moran D. Impact of the FTSE4Good Index on firm price: an event study. J. Environ. Manag. 2007, 82:529-537.
21. Dehejia R.H., Wahba S. Propensity Score Matching Methods for Nonexperimental Causal Studies. The Review of Economics and Statistics 2002, 84:1:151-161. MIT Press.
22. Fombrun C., Shanley M. What's in a name? Reputation building and corporate strategy. Acad. Manag. J. 1990, 3(3):233-258.
23. Fombrun C.J., Gardberg N.A., Barnett M.L. Opportunity platforms and safety nets: corporate citizenship and reputational risk. Bus. Soc. Rev. 2000, 105:85-106.
24. Foster E.M. Propensity score matching: an illustrative analysis of dose response. Med. Care 2003, 41(10):1183-1192.
25. Friedman, M., 1970, The social responsibility of business is to increase its profits, New York Times Magazine, (September 13).
26. Frooman J. Socially irresponsible and illegal behaviour and shareholder wealth. Bus. Soc. 1997, 36(3):221-249.
27. Garcia-Castro R., Ariño M.A., Canela M.A. Does social performance really lead to financial performance? Accounting for endogeneity. J. Bus. Ethics 2010, 92(1):107-126.
28. Gelb D.S., Strawser J.A. Corporate social responsibility and financial disclosures: an alternative explanation for increased disclosure. J. Bus. Ethics 2001, 33:1-13.
29. Greene W. Econometric analysis 2003, Prentice Hall, New Jersey. fifth ed.
30. Greene W.H. Econometric analysis. Boston: Pearson 2012, 7th ed.
31. Guo S., Fraser M.W. Propensity Score Analysis Statistical Methods and Applications 2010, Sage, Thousand Oaks.
32. Harjoto M.A., Jo H. Corporate social responsibility and operating performance. J. Acad. Bus. Econ. 2008, 18(1):59-71.
33. Heckman J.J. Dummy endogenous variables in a simultaneous equation system. Econometrics 1978, 46(6):931-959.
34. Heckman J., Navarro-Lozano S. Using matching, instrumental variables, and control functions to estimate economic choice models. Rev. Econ. Stat. 2004, 86(1):30-57.
35. Ho F.N., Wang H.M., Vitell S.J. A global analysis of corporate social performance: the effects of cultural and geographic environments. J. Bus. Ethics 2012, 107(4):423-433.
36. Iannotta G., Nocera G., Sironi A. The impact of government ownership on bank risk. J. Financ. Intermed. 2013, 22(2):152-176.
37. Imbens G.W. Sensitivity to exogeneity assumptions in program evaluation. Am. Econ. Rev. 2003, 93(2):126-132.
38. Imbens G. Matching methods in practice: three examples (No. w19959). National Bureau of Economic Research 2014.
39. Imbens G.W., Wooldridge J.M. Recent developments in the econometrics of program evaluation. J. Econ. Lit. 2009, 47(1):5-86.
40. Ioannou I., Serafeim G. What drives corporate social performance?: international evidence from social, Environmental and Governance Sources 2010, Harvard Business School, Cambridge.
41. Kim H.R., Lee M., Lee H.T., Kim N.M. Corporate social responsibility and employee-company identification. J. Bus. Ethics 2010, 95(4):557-569.
42. Kopel M., Brand B. Socially responsible firms and endogeneous choice of strategic incentives. Econ. Model. 2012, 29(3):982-989.
43. Kosuke I., King G., Stuart E.A. Misunderstandings between experimentalists andobservationalists about causal inference. J.R. Stat. Soc. 2008, 171(2):481-502.
44. La Porta R., Lopez-de-Silanes F., Shleifer A., Vishny R. Law and finance. J. Polit. Econ. 1998, 106:1113-1155.
45. Lambertini L., Tampieri A. Incentives, performance and desirability of socially responsible firms in a Cournot oligopoly. Econ. Model. 2015, 50:40-48.
46. Li X.H., Zhao X.L. Propensity score matching and abnormal performance after seasoned equity offerings. J. Empir. Finance 2006, 13(3):351-370.
47. Margolis J., Elfenbein H., Walsh J. Does it pay to be good? A meta-analysis and redirection of research on the relationship between corporate social and financial performance. Harvard Business School Working Paper 2007.
48. McWilliams A., Siegel D. Corporate social responsibility and financial performance: correlation or misspecification?. Strateg. Manag. J. 2000, 21:603-609.
49. McWilliams A., Siegel D. Corporate social responsibility: a theory of the firm perspective. Acad. Manag. Rev. 2001, 26:117-127.
50. Minor D., Morgan J. CSR as reputation insurance: primum non nocere. Calif. Manag. Rev. 2011, 53(3):40-59.
51. Nollet J., Filis G., Mitrokostas E. Corporate social responsibility and financial performance: a non-linear and disaggregated approach. Ecol. Model. 2016, 52:400-407. Part B.
52. Porter M.E., van der Linde C. Green and competitive. Harv. Bus. Rev. 1995, 120-134. September-October.
53. Preston L.E., O'Bannon D.P. The corporate social-financial performance relationship: a typology and analysis. Bus. Soc. 1997, 36:419-429.
54. Rosenbaum P.R., Rubin D.B. The central role of the propensity score in observational studies for causal effects. Biometrika 1983, 70:41-55.
55. Rosenbaum P.R., Rubin D.B. Constructing a control group using multivariate matched sampling methods that incorporate the propensity score. Am. Stat. 1985, 39:33-38.
56. Rubin D.B. Matching to remove bias in observational studies. Biometrics 1973, 29:159-183.
57. Rubin D.B. The use of matched sampling and regression adjustment to remove bias in observational studies. Biomettics 1973, 29:185-203.
58. Scholtens B. Financial and social performance of socially responsible investments in the Netherlands. Corporate Governance: An International Review 2007, 15:6:1090-1105. Blackwell Publishing.
59. Scholtens B. Corporate social responsibility in the international banking industry. J. Bus. Ethics 2009, 86(2):159-175.
60. Scholtens L.J.R., Dam L. Banking on the equator. Are banks that adopted the equator principles different from non-adopters?. World Dev. 2007, 35(8):1307-1328.
61. Sen S., Bhattacharya C.B. Does doing good always lead to doing better? Consumer reaction to corporate social responsibility. J. Mark. Res. 2001, 38(2):225-243.
62. Shen C.H., Chang Y. Ambition versus conscience, does corporate social responsibility pay off? The application of matching methods. J. Bus. Ethics 2009, 88(1):133-153.
63. Shen C.H., Chang Y. Corporate social responsibility, financial performance and selection bias: evidence from Taiwan's TWSE-listed banks. Research Handbook on International Banking and Governance 2012, 458.
64. Shen C.H., Chang Y. To join or not to join? Do banks that are part of a financial holding company perform better than banks that are not?. Contemp. Econ. Policy 2012, 30(1):113-128.
65. Simpson W., Kohers T. The link between social and financial performance: evidence from the banking industry. J. Bus. Ethics 2002, 35:97-109.
66. Turban D.B., Greening D.W. Corporate social performance and organizational attractiveness to prospective employees. Acad. Manag. J. 1997, 40:658-672.
67. Udayasankar K. Corporate social responsibility and firm size. J. Bus. Ethics 2008, 83(2):167-175.
68. Ullmann A.A. Data in search of a theory: a critical examination of the relationships among social performance, social disclosure, and economic performance of U.S. firms. Acad. Manag. Rev. 1985, 10(3):540.
69. Vega M., Winkelried D. Inflation targeting and inflation Behaviour: a successful story?. Int. J. Cent. Bank 2005, 1(3):153-175.
70. Wu M.W., Shen C.H. Corporate social responsibility in the banking industry: motives and financial performance. J. Bank. Financ. 2013, 37:3529-3547.
71. Wu M.W., Shen C.H., Lu C.H., Chan C.C. Impact of foreign strategic investors on earnings management of Chinese banks. Emerg. Mark. Financ. Trade 2012, 48(5):115-133.
72. Zhang R., Zhu J., Yue H., Zhu C. Corporate philanthropic giving, advertising intensity, and industry competition level. J. Bus. Ethics 2010, 94:39-52.