The Triple Bottom Line: What is the Impact on the Returns to Agribusiness?

event-study, sustainability, profitability, corporate social responsibility, Dow Jones Sustainability Index, Agribusiness, Agricultural and Food Policy, Agricultural Finance, Demand and Price Analysis, Environmental Economics and Policy, Financial Economics, Risk and Uncertainty,

Environmental sustainability conducts and corporate performance in extractive sector

The subject of environmental sustainability transcends geographical zones, it attracts attention at the top-most business, governmental and civil society levels because of its current visible impacts. Despite the growing concern for a sustainable ecosystem, few applied studies have been conducted to establish the relationship between environmental sustainability and corporate performance in the extractive sector (one of the most profitable of all business sectors, yet arguably the worst culprit in environmental degradation). Therefore, this research seeks to explore the relationship between environmental sustainability and corporate performance in the extractive sector. This relationship was investigated using data from 68 companies within the extractive sector in both Europe and the Americas by the technique of multiple linear regression and event studies by one-way ANOVA. Our results show a negative relationship between environmental sustainability and profit while mixed results were obtained for relationship between environmental sustainability and firm value. In the short horizon, there is a positive relationship between environmental sustainability and firm value while a negative result was obtained in a long-horizon. The pattern of the results is most likely due to the unique nature of the sector where the demand for product exceeds supply. There is monopoly power in the form of cartels, and substitutes for the sector’s products (e.g. oil, gas, and cement) are either unavailable or inadequate. Therefore, poor attention to environmental responsibilities may not necessarily affect the profit but impact negatively on corporate value of the companies within the sector in a short-term. However, in the long-term, poor sensitivity to the environment may not be sustainable

Helping consumers weather the storm: the impact of consumer-targeted resiliency programs on firm value

Purpose: With the goal of helping consumers bounce back from the financial challenges they faced as a result of the COVID-19 pandemic, many firms developed and announced consumer-targeted resiliency programs (e.g. Walgreens waived delivery fees, Associated Bank allowed deferred mortgage payments). However, there is a paucity of research examining the unique features of these programs, and whether firms\u27 investors (the first external stakeholder group to provide them with feedback regarding their strategies) were receptive to these programs during a period of time in which firms themselves were suffering financially. Drawing on resilience theory and stakeholder theory, the present research incorporates an event study of consumer-targeted resiliency program announcements to understand their financial implications for firms, and to learn whether firms witnessed different financial effects as a result of firm- and program-specific factors. Design/methodology/approach: This study referred to business news publications and newswire services to collect a comprehensive list of consumer-targeted resiliency programs announced by publicly traded U.S. firms during the pandemic. The resulting dataset consisted of 145 announcements made during the period of February–June 2020. An event study was conducted in order to precisely measure the main effect of consumer-targeted resiliency programs on firm value, as manifested through abnormal stock returns. Finally, a moderation analysis (regression) was conducted to uncover whether firm characteristics or specific features of firms\u27 consumer-targeted resiliency programs lead certain firms to witness stronger financial effects than others. Findings: The main effect of consumer-targeted resiliency programs on firm value was found to be positive – a 1.9% increase on average. The moderation analysis finds that non-financial firms were rewarded more positively than financial firms (e.g. banks and credit card companies). In addition, financial aid (i.e. allowing customers to defer their payments to a firm for its products/services, versus a reduction in the price of a product/service or offering it for free or giving cash back to customers) and temporal characteristics (i.e. an offer being framed as limited-time, vs being indefinite or for the foreseeable future) are not found to have a moderating effect. Originality/value: This theory-driven empirical study uncovers practical implications for managers of firms interested in whether investing in corporate social responsibility during times of crisis is a wise allocation of resources. Any form of financial aid for consumers, regardless of temporal limitations, is received positively by investors. © 2024, Emerald Publishing Limited. The available download on this page is the author manuscript accepted for publication. This version has undergone full peer review but has not been through the copyediting, typesetting, pagination and proofreading process

Corporate social responsibility and seasoned equity offerings

We examine whether corporate social responsibility (CSR) creates value for seasoned equity issuers. Using a sample of seasoned equity offerings (SEOs) by U.S. companies between 2004 and 2013, we find a positive association between CSR performance and the stock price reaction to SEO announcements. Surprisingly, however, further tests reveal that seasoned equity issuers with high CSR scores tend to have higher post-SEO increases in cash holdings, and lower investments in real assets, than issuers with low CSR scores. Moreover, high-CSR issuers have worse post-SEO operating and stock price performance than low-CSR issuers. Together, our findings suggest that high CSR scores mislead shareholders into attributing value-increasing motives to seasoned equity issues

Reflexive Learning and Performative Failure

In this paper we emphasize the importance of context for student learning. Based on reflective logs and interview data, we explore how students learn outside of the classroom as they undertake an experiential dissertation project. We identify three different forms of reflexive learning and critique, all triggered by some form of performative failure; scholarly critique, engaged critique and engaged action. Drawing on Butler’s theory of performativity we illustrate how reflexivity is not purely the action of any individual student, rather it is a practice that is co-created within a certain context. As such, we contest individualistic understandings of reflexivity and encourage a careful consideration of the places students and managers are encouraged to be reflexive

How do Corporate Social Responsibility announcements affect firm value?

Master's thesis in Economic analysisTaking previous research on this topic into consideration, this thesis sets out to give some insights as to why there seems to be increasing focus on Corporate Social Responsibility (CSR) initiatives by firms. Using theory from business ethics, CSR, investor behaviour and finance as a base, we try to answer how CSR announcements made by listed firms in the U.S. affect its firm value, hereunder stock returns. After conducting an event study, similar to the approach of Elton, Gruber, Brown and Goetzmann (2014), we find no overall significant evidence that CSR announcements affect stock returns. However, when expanding the analysis by adding business sectors, our results view firms in the financial, services and basic materials sector to experience a significantly negative effect on firm value when announcing CSR initiatives

Three Essays on CEO Characteristics and Corporate Decisions

Recent studies have stressed the importance of managerial fixed effects on firm investment decisions. Following this stream of research, this dissertation empirically investigates the potential effects of two major Chief Executive Officer (CEO) characteristics, i.e. risk preferences and potential mobility, on corporate decisions such as merger and acquisition (M&A) and corporate social responsibility (CSR) investments. Essay 1 examines whether the variation of M&A stock returns around the 2008 financial crisis is associated with shareholders’ increased loss aversion as a result of undergoing financial losses. The results show that acquisitions carried out by CEOs with risk-averse inducing compensation (inside debt) before and during the financial crisis creates greater shareholder gains than counterpart M&As by CEOs with risk-seeking (convex) compensation. However, this pattern is reversed in the post-crisis period, suggesting that equity holders’ risk tolerance is amplified after the financial crisis, consistent with the prospect theory predicting that economic agents become more risk-seeking subsequent to suffering a financial loss. Essay 2 investigates shareholder reactions to CSR investments undertaken by firms under the helm of CEOs with risk-averse (risk-seeking) inducing compensation contracts. The evidence shows that CSR announcements carried out by CEOs with risk-averse (risk-seeking) inducing compensation generate higher (lower) cumulative abnormal returns and post-CSR long-term performance. This pattern holds under a battery of robustness checks. In addition, firms led by CEOs with risk-averse (risk-seeking) inducing compensation contracts are less (more) likely to engage in excessive CSR decisions and associated with greater (lower) CSR information disclosure and improved financial performance. Essay 3 explores the impact of CEO mobility on M&As. Using ability and willingness to switch jobs as a proxy for CEO mobility, the evidence shows that acquiring CEOs’ mobility has a positive effect on the propensity to engage in value-increasing M&A deals. In addition, acquiring firms led by more (less) mobile CEOs are associated with higher (lower) short-term shareholder gains, realize better (worse) post-M&A long-term performance, and tend to use cash (stock) to finance M&A transactions. The empirical results are robust to potential omitted variable bias and self-selection bias. Overall, this dissertation contributes to the finance and business literature by reconciling some of the gaps left by prior studies based on unexplored thus far key managerial characteristics that truly matter in corporate decision making. Furthermore, this work empirically validates and refines recently proposed measures of CEO potential mobility that can potentially be used to address additional research issues in the future

The Impact Of The CSR Messages Type On Corporate Image: A Cross-Cultural Investigation

This study investigates the impact of internal and external CSR messages on corporate image within a cross-cultural context. A 3 x 2 between-subjects experiment was conducted to examine the effects of CSR message types on general corporate image, trust, and credibility among U.S. and Chinese participants. The results revealed that U.S. and Chinese participants displayed varying levels of perceived corporate image and credibility. Chinese participants exhibited higher levels of trust, corporate image, and credibility after receiving CSR messages, regardless of type. Significant interaction effects were noted between CSR message type and culture on corporate image and credibility. Chinese participants had a higher corporate image with both internal and external CSR messages, while U.S. participants had the highest corporate image with external CSR, followed by internal CSR, and lowest in control conditions. Despite no corporate credibility variation for Chinese participants, U.S. participants perceived higher credibility with external CSR message compared to control conditions. These findings suggest differences in cultural values and social norms impact perceptions of CSR messages in individualistic and collectivist countries. The current study provides insights for public relations practitioners who want to utilize CSR strategies to advance corporate image in cross-cultural businesses, as well as increases the overall understanding of CSR practices amongst two dominant cultures of the world. Furthermore, this study and its findings can inspire and inform global companies to develop cultural-specific messages of CSR to enhance their corporate image in international markets