Corporate social responsibility performance, reporting and generalized methods of moments (GMM): A structured review of corporate governance determinants and firms’ financial consequences
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In: Corporate Ownership and Control, Vol. 19, No. 2, 01.01.2022, p. 8-27.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Corporate social responsibility performance, reporting and generalized methods of moments (GMM)
T2 - A structured review of corporate governance determinants and firms’ financial consequences
AU - Velte, Patrick
PY - 2022/1/1
Y1 - 2022/1/1
N2 - In line with the business case argument for corporate social responsibility (CSR), CSR performance and reporting should lead to positive firms’ financial outputs. As CSR issues may be linked with greenwashing behavior and self-impression management, effective corporate governance as a monitoring tool should increase CSR reporting and performance. While empirical-quantitative research on CSR extremely increased since the last decade, endogeneity concerns impair the validity of research results. This paper focuses on one of the most important techniques to include endogeneity concerns: the generalized method of moments (GMM) as dynamic panel regression. This paper summarizes the results of archival research on corporate governance determinants and firms’ financial consequences of CSR performance and reporting. The increased importance of managing and reporting on CSR issues represents the key motivation to conduct a systematic literature review. By including 131 quantitative peer-reviewed empirical studies in this field, in line with legitimacy and stakeholder theory, there are indications that 1) gender diversity positively influences CSR performance, and 2) CSR performance increases both accounting- and market-based financial performance (ROA and Tobin’s Q). A research agenda with detailed research recommendations are provided for future studies
AB - In line with the business case argument for corporate social responsibility (CSR), CSR performance and reporting should lead to positive firms’ financial outputs. As CSR issues may be linked with greenwashing behavior and self-impression management, effective corporate governance as a monitoring tool should increase CSR reporting and performance. While empirical-quantitative research on CSR extremely increased since the last decade, endogeneity concerns impair the validity of research results. This paper focuses on one of the most important techniques to include endogeneity concerns: the generalized method of moments (GMM) as dynamic panel regression. This paper summarizes the results of archival research on corporate governance determinants and firms’ financial consequences of CSR performance and reporting. The increased importance of managing and reporting on CSR issues represents the key motivation to conduct a systematic literature review. By including 131 quantitative peer-reviewed empirical studies in this field, in line with legitimacy and stakeholder theory, there are indications that 1) gender diversity positively influences CSR performance, and 2) CSR performance increases both accounting- and market-based financial performance (ROA and Tobin’s Q). A research agenda with detailed research recommendations are provided for future studies
KW - Management studies
KW - CSR performance
KW - CSR reporting
KW - corporate governance
KW - environmental performance
KW - financial performance
KW - legitimacy theory
KW - Sustainability Science
UR - https://www.mendeley.com/catalogue/52ac2753-93fe-31ae-876d-29573cb8db21/
U2 - 10.22495/cocv19i2art1
DO - 10.22495/cocv19i2art1
M3 - Journal articles
VL - 19
SP - 8
EP - 27
JO - Corporate Ownership and Control
JF - Corporate Ownership and Control
SN - 1727-9232
IS - 2
ER -