Advanced search
Publication Cover
Cogent Business & Management Volume 10, 2023 - Issue 1
Submit an article Journal homepage
2,529
Views
0
CrossRef citations to date
0
Altmetric
ACCOUNTING, CORPORATE GOVERNANCE & BUSINESS ETHICS

Moderating role of risk management effectiveness on corporate social responsibility- corporate performance relationship

Husaini Husaini1 Department of Accounting, Faculty of Economics and Business, University of Bengkulu, Bengkulu, IndonesiaCorrespondence[email protected]
,
Ridwan Nurazi1 Department of Accounting, Faculty of Economics and Business, University of Bengkulu, Bengkulu, Indonesia
&
Saiful Saiful2 Department of Management, Faculty of Economics and Business, University of Bengkulu, BengkuluIndonesiaORCID Iconhttps://orcid.org/0000-0002-3950-6696
ORCID Icon
Article: 2194465 | Received 22 Feb 2023, Accepted 18 Mar 2023, Published online: 26 Mar 2023

References

  • Adina, D., & Oanea, D. C. (2017). CSR and company’s stock price. a comparative evidence from bucharest stock exchange. EuroEconomica, 36(1), 175–14.
  • Akben-Selcuk, E. (2019). Corporate social responsibility and financial performance: the moderating role of ownership concentration in Turkey. Sustainability, 11(13), 3643. https://doi.org/10.3390/su11133643
  • Albuquerque, R., Koskinen, Y., & Zhang, C. (2018). Corporate social responsibility and firm risk: theory and empirical evidence. Management Science, 65(10), 4451–4469. https://doi.org/10.1287/mnsc.2018.3043
  • Andersen, T. J. (2008). The performance relationship of effective risk management: exploring the firm-specific investment rationale. Long Range Planning, 41(2), 155–176. https://doi.org/10.1016/j.lrp.2008.01.002
  • Argandoña, A. (1998). The stakeholder theory and the common good. Journal of Business Ethics, 17, 1093–1102. https://doi.org/10.1023/A:1006075517423
  • Awaysheh, A., Heron, R. A., Perry, T., & Wilson, J. I. (2020). On the relationbetween corporate social responsibility and financial performance.Strategic. Management Journal, 41(6), 965–987. https://doi.org/10.1002/smj.3122
  • Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173
  • Bassen, A., Meyer, K., & Schlange, J. (2006). The influence of corporate responsibility on the cost of capital‐an empirical analysis, available at: http://ssrn.com/abstract=984406 (accessed January 10th, 2020).
  • Boilar, O. (2013). Sustainability reports as simulacra? A counter-account of a and A+ GRI reports. Accounting, Auditing & Accountability Journal, 26(7), 1036–1071. https://doi.org/10.1108/AAAJ04-2012-00998
  • Brinkman, J. (2003). Does corporate social responsibility lead to improved financial performance? An analysis of the electric utility industry. The Center for Corporate Citizenship at Boston College.
  • Castelló, I., & Lozano, J. (2009). From risk management to citizenship corporate social responsibility: Analysis of strategic drivers of change. Corporate Governance the International Journal of Business in Society, 9(4), 373–385. https://doi.org/10.1108/14720700910984927
  • Devie, D., Liman, L. P., Tarigan, J., & Jie, F. 2019. Corporate social responsibility, financial performance and risk in Indonesian natural resources industry. Social Responsibility Journal.https://doi.org/10.1108/srj-06-2018-0155 16: (1) 73–90. https://doi.org/10.1108/SRJ-06-2018-0155
  • Dissanayake, D., Tilt, C., & Qian, W. (2019). Factors influencing sustainability reporting by Sri Lankan companies. Pacific Accounting Review, 31(1), 84–109. https://doi.org/10.1108/PAR-10-2017-0085
  • Elkington, J. (1997). Cannibal with forks, the tripple bottom line of twentieth century business. Capstone Publishing Ltd.
  • Elouidani, A., & Zoubir, F. (2015). Corporate social responsibility and financial performance. African J Accounting Auditing and Finance, 4(1), 74–85. https://doi.org/10.1504/AJAAF.2015.071749
  • Ender, M., & Brinckmann, F. (2019). Impact of CSR-Relevant news on stock prices of companies listed in the austrian traded index (ATX). International Journal of Financial Studies, 7(3), 36. https://doi.org/10.3390/ijfs7030036
  • Famiyeh, S. (2017). Corporate social responsibility and firm’s performance: Empirical evidence. Social Responsibility Journal, 13(2), 390–406. https://doi.org/10.1108/SRJ-04-2016-0049
  • Ferrero, J. M., & Frías‐aceituno, J. V. (2015). Relationship between sustainable development and financial performance: international empirical research. Business Strategy and the Environment, 24, 20–39. https://doi.org/10.1002/bse.1803
  • Florio, C., & Leoni, G. (2016). Enterprise Risk Management and Firm Performance: The Italian Case. The British Accounting Review, 49(1), 56–74. https://doi.org/10.1016/j.bar.2016.08.003
  • Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman Publishing.
  • Freeman, R. E., & Reed, D. L. (1983). Stockholders and stakeholders: A new perspective on corporate governance. Californian Management Review, 25(3), 88–106. https://doi.org/10.2307/41165018
  • Friedman, M. (1982). Monetary Policy: Theory and Practice. Journal of Money, Credit, and Banking, 14(3), 404–406. https://doi.org/10.2307/1991709
  • Galdeano, D., Ahmed, U., Fati, M., Rehan, R., & Ahmed, A. (2019). Financial performance and corporate social responsibility in the banking sector of Bahrain: Can engagement moderate? Management Science Letters, 9(10), 1529–1542. https://doi.org/10.5267/j.msl.2019.5.032
  • Godfrey, P. C., Merrill, C. B., & Hansen, J. M. (2009). The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic Management Journal, 30, 425–445. https://doi.org/10.1002/smj.750
  • Gordon, L., Loeb, M. P., & Tseng, C. Y. (2009). Enterprise risk management and firm performance: A contingency perspective. Journal of Accounting and Public Policy, 28(4), 301–327. https://doi.org/10.1016/j.jaccpubpol.2009.06.006
  • Guthrie, J., & Parker, L. D. (1989). Corporate social reporting: a rebuttal of legitimacy theory. Accounting and Business Research, 19(76), 343–352. https://doi.org/10.1080/00014788.1989.9728863
  • Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: indeed asilver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202
  • Hannah, S. T., Sayari, N., Harris, F., & Cain, C. L. (2020). The direct and moderating effects of endogenous corporate social responsibility on firm valuation: Theoretical and empirical evidence from the global financial crisis. Journal of Management Studies, 58(2), 421–456. https://doi.org/10.1111/joms.12586
  • Harjoto, M., & Laksmana, I. (2016). The impact of corporate social responsibility on risk taking and firm value. Journal of Business Ethics, 151(2), 353–373. https://doi.org/10.1007/s10551-016-3202-y
  • Hashim, F., Ries, E. A., & Huai, N. T. (2019). CorporateSocialresponsibilityand financial performance: the case of asean telecommunications companies. FGIC 2nd Conference on Governance and Integrity 2019, KnE Social Sciences, pages 892–913. https://doi.org/10.18502/kss.v3i22.5095.
  • Ho, L. J., & Taylor, M. E. (2007). An Empirical Analysis of Triple Bottom-Line Reporting and its Determinants: Evidence from the Unites States and Japan. Journal of International Financial and Accounting, 18(2), 123–150. https://doi.org/10.1111/j.1467-646X.2007.01010.x
  • Ho, P. -H., & Taylor, G. (2013). “Corporate governance and different types of voluntary disclosure. Pacific Accounting Review, 25(1), 4–29. https://doi.org/10.1108/01140581311318940
  • Hoyt, R. E., & Lybenberg, A. P. (2011). The value of enterprise risk management. The Journal of Risk and Insurance, 78(4), 795–822. https://doi.org/10.1111/j.1539-6975.2011.01413.x
  • Husaini Pirzada, K., Pirzada, Saiful, K. (2020). Risk management, sustainable governance impact on corporate performance. Journal of Security and Sustainability Issues, 9(3), 104. https://doi.org/10.9770/jssi.2020.9.3(23)
  • Husaini, & Saiful. (2017). Enterprise risk management, corporate governance and firm value: empirical evidence from indonesian public listed companies. International Journal of Advances in Management and Economics, 6(6), 16–23. www.managementjournal.info
  • Husted, B. W. (2005). Risk management, real options, corporate social responsibility. Journal of Business Ethics, 60(2), 175–183. https://doi.org/10.1007/s10551-005-3777-1
  • Jensen, M. C., & Dan Meckling, W. H. (1976). Theory of the firm: Manajerial behaviour, agency cost, and ownership structure. Journal of Financial and Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
  • Khan, A., Khan, M. I., & Bhutto, N. A. 2020. Reassessing the impact of risk management capabilities on firm value: a stakeholders perspective. Journal of Management and Business Vol. 6: 2 https://doi.org/10.30537/sijmb.v6i2.282
  • Kim, S., Lee, G., & Kang, H. (2020). Risk Management and Corporate Social Responsibility. Strategic Management Journal, 42(1), 202–230. https://doi.org/10.1002/smj.3224
  • Kommunuri, J., Narayan, A., Wheaton, M., & Jandug, L. (2015). Enterprise Risk Management and Firm Performance Empirical evidence from Vietnam. https://pdfs.semanticscholorg/c038/5297a7ce919f4c9c702876250cd305f36cdc.pdf.
  • Kordsachia, O. (2021). A risk management perspective on CSR and the marginal cost of debt: Empirical evidence from Europe. Review of Managerial Science, 15, 1611–1643. https://doi.org/10.1007/s11846-020-00392-2
  • Lee, S., Kim, Y. K., & Kim, K. (2015). Corporate governance, firm risk, and corporate social responsibility: evidence from korean firms. Journal of Applied Business Research (JABR), 32(1), 303–316. https://doi.org/10.19030/jabr.v32i1.9539
  • Lu, H., Liu, X., & Falkenberg, L. (2020). Investigating the impact of corporate social responsibility (csr) on risk management practices. Business & Society, 1, 39. https://doi.org/10.1177/0007650320928981
  • Marti, C. P., Rovira‐val, M. R., & Drescher, L. G. J. (2015). Are firms that contribute to sustainable development better financially? Corporate Social Responsibility and Environmental Management, 22, 305–319. https://doi.org/10.1002/csr.1347
  • Masum, M. H. (2020). Factors affecting the sustainability reporting: evidence from Bangladesh. International Journal of Mechanical and Production Engineering Research and Development (IJMPERD), 10(3), 8323–8338. https://doi.org/10.24247/ijmperdjun2020792
  • Nekhili, M., Nagati, H., Chtioui, T., & Rebolledo, C. (2017). Corporate social responsibility disclosure and market value: Family versus nonfamily firms. Journal of Business Research, 77, 41–52. https://doi.org/10.1016/j.jbusres.2017.04.001
  • Odeh, M. H., Alshannag, F. M., Eneizan, B., Alkhawaldeh, A. M., Makhamreh, H. Z., & McMillan, D. (2020). Analysis of the relationship between corporate social responsibility (CSR) spending and market stock price among Jordanian service firms. Cogent Business & Management, 7(1), 1. https://doi.org/10.1080/23311975.2020.1746732
  • Orazalin, N., & Mahmood, M. (2019). Determinants of GRI-based sustainability reporting: Evidence from an emerging economy. Journal of Accounting in Emerging Economies, 10(1), 140–164. https://doi.org/10.1108/JAEE-12-2018-0137
  • Orlitzky, M., & Benjamin, J. D. Corporate social performance and firm risk: A meta analytic review. (2001). Business & Society, 40(4), 369–396. 0104000402. https://doi.org/10.1177/00076503
  • Pagach, D., & Warr, R. (2010). The Effects of Enterprise Risk Management on Firm Performance. Jenkins Graduate School of Management North Carolina State University.
  • Perks, K., Farache, F., Shukla, P., & Berry, A. (2013). Communicating responsibility practicing irresponsibility in CSR advertisements. Journal of Business Research, 66(10), 1881–1888. https://doi.org/10.1016/j.jbusres.2013.02.009
  • Porter, M., & Kramer, M. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, 80(12), 56–69. https://www.hbs.edu/faculty/Pages/item. aspx?num=46631.
  • Saiful, H., Saputra, J., & Albra, W. (2019). A Study of supply chain management of board composition, enterprise risk management, and performance of non and islamic companies in Indonesia. International Journal of Supply Chain Management, 8(5), 349–357. http://excelingtech.co.uk/
  • Schröck, G. (2002). Risk Management and Value Ceation in Financial Institutions. John Wiley & Sons, Inc.
  • Sholihin, M., Pike, R., Mangena, M., & Li, J. (2011). Goal-setting participation and goal commitment: Examining the mediating roles of procedural fairness and interpersonal trust in a UK financial services organisation. The British Accounting Review, 43(2), 135–146. https://doi.org/10.1016/j.bar.2011.02.003
  • Silva, J. R., Silva, A. F., & Chan, B. L. (2018). Enterprise risk management and firm value: Evidence from Brazil. Emerging Markets Finance and Trade, 55(3), 687–703. https://doi.org/10.1080/1540496X.2018.1460723
  • Simionescu, L. N., & Gherghina, Ș. C. (2014). Corporate social responsibility and corporate performance: Empirical evidence from a panel of the Bucharest Stock Exchange listed companies. Management & Marketing Challenges for the Knowledge Society, 9(4), 439‐458.
  • Solihin, M., & Ratmono, D. (2013). Analisis SEM-PLS dengan WarpPLS 3.0.Yogyakarta. Penerbit Andi.
  • Sun, W., & Cui, K. (2014). Linking corporate social responsibility to firm default risk. European Management Journal, 32(2), 275‐287. https://doi.org/10.1016/j.emj.2013.04.003
  • Tran, H., Bui, V., Phan, T., Dau, X., Tran, M., & Do, D. (2019). The impact of corporate social responsibility and risk management on financial performance: The case of Vietnamese textile firms. Management Science Letters, 9(7), 1029–1036. https://doi.org/10.5267/j.msl.2019.4.003
  • Tse Hou, T. C. (2018). The relationship between corporate social responsibility and sustainable financial performance: Firm‐level evidence from Taiwan. Corporate Social Responsibility and Environmental Management, 26(1), 19–28. https://doi.org/10.1002/csr.1647
  • Waheed, A., Hussain, S., Hanif, H., Mahmood, H., Malik, Q., & Ntim, C. G. (2021). Corporate social responsibility and firm performance: The moderation of investment horizon and corporate governance. Cogent Business & Management, 8(1), 1–20. https://doi.org/10.1080/23311975.2021.1938349
  • Wang, Q., Dou, J., & Jia, S. (2016). A meta-analytic review of corporate social responsibility and corporate financial performance. Business & Society, 55(8), 1083–1121. https://doi.org/10.1177/0007650315584317
  • Wirawan, A. W., Falah, L. J., Kusumadewi, L., Adhariani, D., & Djakman, C. D. (2020). The effect of corporate social responsibility on the firm value with risk management as a moderating variable. Journal of Asia-Pacific Business, 21(2), 143–160. https://doi.org/10.1080/10599231.2020.1745051

Related research

People also read lists articles that other readers of this article have read.

Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine.

Cited by lists all citing articles based on Crossref citations.
Articles with the Crossref icon will open in a new tab.