IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i8p2447-d225898.html
   My bibliography  Save this article

The Effect of Listing Period on Corporate Social Responsibility: Evidence from Korea

Author

Listed:
  • Nam Chul Jung

    (School of Business Administration, Hongik University, 94 Wausan-ro, Mapo-gu, Seoul 04066, Korea)

  • Hyun Ah Kim

    (School of Industrial Management, Korea University of Technology & Education, 1600 Chungjeol-ro, Byeongcheon-myeon, Dongnam-gu, Cheonan City 31253, Korea)

Abstract

Newly listed firms can actively engage in corporate social responsibility (CSR) to build reputation, but they may postpone CSR until they have enough slack for it. Related to this, prior literature does not provide consistent results, the US evidence supports the latter while the Chinese results support the former. To extend the literature, we use Korean listed companies and examine the association between the listing period and CSR. We further investigate the effect of analyst following on the relationship. The empirical results show that firms with a shorter listing period invest more in CSR and that the association exists only in firm-years followed by analysts, indicating the importance of the information environment to inform CSR. We additionally find that young listed companies mainly use social contribution and soundness, which can be discretionarily conducted from a short-term perspective. The results of this study using CSR to obtain a short-term objective suggest that policymakers need to analyze a firm’s behavior from various perspectives and to establish proper guidelines to achieve a long-term goal of CSR “sustainability”.

Suggested Citation

  • Nam Chul Jung & Hyun Ah Kim, 2019. "The Effect of Listing Period on Corporate Social Responsibility: Evidence from Korea," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:8:p:2447-:d:225898
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/8/2447/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/8/2447/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sandra A. Waddock & Samuel B. Graves, 1997. "The Corporate Social Performance–Financial Performance Link," Strategic Management Journal, Wiley Blackwell, vol. 18(4), pages 303-319, April.
    2. Hoje Jo & Maretno Harjoto, 2011. "Corporate Governance and Firm Value: The Impact of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 103(3), pages 351-383, October.
    3. Chang, Sea Jin, 2004. "Venture capital financing, strategic alliances, and the initial public offerings of Internet startups," Journal of Business Venturing, Elsevier, vol. 19(5), pages 721-741, September.
    4. Jan Lepoutre & Aimé Heene, 2006. "Investigating the Impact of Firm Size on Small Business Social Responsibility: A Critical Review," Journal of Business Ethics, Springer, vol. 67(3), pages 257-273, September.
    5. Henri Servaes & Ane Tamayo, 2013. "The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness," Management Science, INFORMS, vol. 59(5), pages 1045-1061, May.
    6. Jeong‐Bon Kim & Bing Li & Zhenbin Liu, 2018. "Does social performance influence breadth of ownership?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 45(9-10), pages 1164-1194, October.
    7. Ľuboš Pástor & Veronesi Pietro, 2003. "Stock Valuation and Learning about Profitability," Journal of Finance, American Finance Association, vol. 58(5), pages 1749-1789, October.
    8. Hong-Min Chun & Sang-Yi Shin, 2018. "Does Analyst Coverage Enhance Firms’ Corporate Social Performance? Evidence from Korea," Sustainability, MDPI, vol. 10(7), pages 1-16, July.
    9. repec:bla:jfinan:v:58:y:2003:i:5:p:1749-1790 is not listed on IDEAS
    10. Mitchell A. Petersen, 2009. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches," The Review of Financial Studies, Society for Financial Studies, vol. 22(1), pages 435-480, January.
    11. Won Oh & Young Chang & Aleksey Martynov, 2011. "The Effect of Ownership Structure on Corporate Social Responsibility: Empirical Evidence from Korea," Journal of Business Ethics, Springer, vol. 104(2), pages 283-297, December.
    12. Hasan, Mostafa Monzur & Habib, Ahsan, 2017. "Corporate life cycle, organizational financial resources and corporate social responsibility," Journal of Contemporary Accounting and Economics, Elsevier, vol. 13(1), pages 20-36.
    13. Wen-Chi Sun & Hua-Wei Huang & Mai Dao & Chaur-Shiuh Young, 2017. "Auditor selection and corporate social responsibility," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 44(9-10), pages 1241-1275, October.
    14. Chune Young Chung & Sangjun Jung & Jason Young, 2018. "Do CSR Activities Increase Firm Value? Evidence from the Korean Market," Sustainability, MDPI, vol. 10(9), pages 1-22, September.
    15. Woo Jae Lee & Seung Uk Choi, 2018. "Effects of Corporate Life Cycle on Corporate Social Responsibility: Evidence from Korea," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    16. Pradit Withisuphakorn & Pornsit Jiraporn, 2016. "The effect of firm maturity on corporate social responsibility (CSR): do older firms invest more in CSR?," Applied Economics Letters, Taylor & Francis Journals, vol. 23(4), pages 298-301, March.
    17. Mahfuja Malik, 2015. "Value-Enhancing Capabilities of CSR: A Brief Review of Contemporary Literature," Journal of Business Ethics, Springer, vol. 127(2), pages 419-438, March.
    18. Yu, Fang (Frank), 2008. "Analyst coverage and earnings management," Journal of Financial Economics, Elsevier, vol. 88(2), pages 245-271, May.
    19. Kim, Chung Hee & Amaeshi, Kenneth & Harris, Simon & Suh, Chang-Jin, 2013. "CSR and the national institutional context: The case of South Korea," Journal of Business Research, Elsevier, vol. 66(12), pages 2581-2591.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chang Seop Rhee & Sohee Woo & So-Jin Yu & Hyunjung Rhee, 2021. "Corporate Social Responsibility and Sustainable Employability: Empirical Evidence from Korea," Sustainability, MDPI, vol. 13(14), pages 1-14, July.
    2. Hsueh-Li HUANG & Lien-Wen LIANG & Yi-Ching SU CHU, 2022. "The Impact of Corporate Social Responsibility and Corporate Governance on Bank Efficiency. Comparative Analysis of Consolidated and Nonconsolidated Banks," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 105-127, October.
    3. Hyun Ah Kim & Nam Chul Jung, 2022. "Related Party Transactions and Corporate Social Responsibility: Evidence from Korea," Sustainability, MDPI, vol. 14(12), pages 1-19, June.
    4. Hyun Ah Kim & Nam Chul Jung, 2020. "The Effect of Corporate Social Performance on Audit Hours: Moderating Role of the Emphasis of Matter Paragraphs in Audit Report," Sustainability, MDPI, vol. 12(3), pages 1-17, January.
    5. Wang, Zhenkun & Lu, Weijie & Liu, Min, 2021. "Corporate social responsibility overinvestment in mergers and acquisitions," International Review of Financial Analysis, Elsevier, vol. 78(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chune Young Chung & Sang Jun Cho & Doojin Ryu & Doowon Ryu, 2019. "Institutional blockholders and corporate social responsibility," Asian Business & Management, Palgrave Macmillan, vol. 18(3), pages 143-186, July.
    2. Wu, Xiaojuan & Dluhošová, Dana & Zmeškal, Zdeněk, 2023. "The moderating role of a corporate life cycle with the impact of economic value-added on corporate social responsibility: Evidence from China's listed companies," Emerging Markets Review, Elsevier, vol. 55(C).
    3. Hyun Ah Kim & Nam Chul Jung, 2020. "The Effect of Corporate Social Performance on Audit Hours: Moderating Role of the Emphasis of Matter Paragraphs in Audit Report," Sustainability, MDPI, vol. 12(3), pages 1-17, January.
    4. Rizwan Ali & Muhammad Safdar Sial & Talles Vianna Brugni & Jinsoo Hwang & Nguyen Vinh Khuong & Thai Hong Thuy Khanh, 2019. "Does CSR Moderate the Relationship between Corporate Governance and Chinese Firm’s Financial Performance? Evidence from the Shanghai Stock Exchange (SSE) Firms," Sustainability, MDPI, vol. 12(1), pages 1-17, December.
    5. Yuan Yuan & Louise Yi Lu & Gaoliang Tian & Yangxin Yu, 2020. "Business Strategy and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 162(2), pages 359-377, March.
    6. Yuan Yuan & Gaoliang Tian & Louise Yi Lu & Yangxin Yu, 2019. "CEO Ability and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 157(2), pages 391-411, June.
    7. Kyungtag Lee & Hyunchul Lee, 2019. "How Does CSR Activity Affect Sustainable Growth and Value of Corporations? Evidence from Korea," Sustainability, MDPI, vol. 11(2), pages 1-11, January.
    8. Kalpana Tokas & Kartik Yadav, 2023. "Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market," Global Business Review, International Management Institute, vol. 24(6), pages 1302-1325, December.
    9. Hasan, Mostafa Monzur & Wong, Jin Boon & Al Mamun, Mohammed Abdullah, 2022. "Oil shocks and corporate social responsibility," Energy Economics, Elsevier, vol. 107(C).
    10. Maretno Harjoto & Indrarini Laksmana, 2018. "The Impact of Corporate Social Responsibility on Risk Taking and Firm Value," Journal of Business Ethics, Springer, vol. 151(2), pages 353-373, August.
    11. Sun, Li & Walkup, Brian & Wu, Kean, 2019. "Sales order backlog and corporate social responsibility," Advances in accounting, Elsevier, vol. 47(C).
    12. Doukas, John A. & Zhang, Rongyao, 2021. "Managerial ability, corporate social culture, and M&As," Journal of Corporate Finance, Elsevier, vol. 68(C).
    13. Buchanan, Bonnie G. & Cao, Cathy Xuying & Wang, Shuhui, 2021. "Corporate social responsibility and inside debt: The long game," International Review of Financial Analysis, Elsevier, vol. 78(C).
    14. Fatemi, Ali & Glaum, Martin & Kaiser, Stefanie, 2018. "ESG performance and firm value: The moderating role of disclosure," Global Finance Journal, Elsevier, vol. 38(C), pages 45-64.
    15. Manoj Anand & Jagandeep Singh, 2021. "Business students’ perception of corporate social responsibility: an exploratory study," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 48(3), pages 261-284, September.
    16. Shu, Pei-Gi & Chiang, Sue-Jane, 2020. "The impact of corporate governance on corporate social performance: Cases from listed firms in Taiwan," Pacific-Basin Finance Journal, Elsevier, vol. 61(C).
    17. Lai Van Vo & Huong Thi Thu Le & Youngbin Kim, 2023. "Board interlocks, career prospects and corporate social responsibility," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4565-4595, December.
    18. Al-Shaer, Habiba & Uyar, Ali & Kuzey, Cemil & Karaman, Abdullah S., 2023. "Do shareholders punish or reward excessive CSR engagement? Moderating effect of cash flow and firm growth," International Review of Financial Analysis, Elsevier, vol. 88(C).
    19. Uyar, Ali & Lodh, Suman & Nandy, Monomita & Kuzey, Cemil & Karaman, Abdullah S., 2023. "Tradeoff between corporate investment and CSR: The moderating effect of financial slack, workforce slack, and board gender diversity," International Review of Financial Analysis, Elsevier, vol. 87(C).
    20. Boubaker, Sabri & Chebbi, Kaouther & Grira, Jocelyn, 2020. "Top management inside debt and corporate social responsibility? Evidence from the US," The Quarterly Review of Economics and Finance, Elsevier, vol. 78(C), pages 98-115.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:8:p:2447-:d:225898. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.