The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries

This study aims to investigate the nature and intensity of the changes in corporate financial performance due to the corporate social responsibility (CSR) disclosures as a result of certain relationships between corporate governance and company performance in the non-financial sector. This study selected 625 non-financial companies across six organizations for economic cooperations (OECD) countries' stock markets for the period of 10 years (2012–2021). For this qualitative study, corporate governance, financial performance, and corporate social responsibility score data were collected from the DataStream, a reliable database for examining the research on OECD countries' listed companies. For the data analysis we applied various statistical tools such as regression analysis and moderation analysis. The findings of the study show that all attributes of the corporate governance mechanism, except for audit board attendance, have significant positive impacts on financial performance indicators for all the selected OECD economies except the country France. France's code of corporate governance has a significant negative impact on return on asset (ROA) and return on equity (ROE) due to differences in cultural and operational norms of the country. The audit board attendance has no significant impact on ROA. Moreover, all the attributes except board size (BSIZ) have significant positive impacts on the earnings per share (EPS) in Spain, The United Kingdom (UK) and Belgium. The values obtained from the moderation effect show that Corporate social responsibility is the key factor in motivating corporate governance practices which eventually improves corporate financial performance. However, this study advocated the implications, Investors and stakeholders should consider both corporate governance and CSR disclosures when making investment decisions. Companies that prioritize both governance and CSR tend to have better financial performance and are more likely to mitigate risks. Moreover, the policy makers can improve the code of corporate governance in order to attain sustainable development in the stock market.

The Relationship Between Financial Indicators and Financial Intermediaries' Stock Price Volatility Listed on the BM&FBOVESPA Index in the Crisis Period of 2008 and 2020 (Covid-19): GCG

The study goal was to verify the relationship among financial indicators and intermediaries' volatility stock price listed on the BM&FBovespa Index in the crisis period from 2008 and 2020 (COVID-19). The methods used for analysis were Spearman's correlation, multiple linear regression, and Test T. The analyzed period refers to the year 2008, the second semester of 2019 and the first semester of 2020, which include the periods before and during the crises of 2008 and 2020. The results found show that only the indicator of the assets total turnover rate has a significant relationship with the stock price volatility.Alternate :O estudo tem como objetivo verificar a relação entre os indicadores com a volatilidade das ações das intermediadoras financeiras listadas no Índice BM&FBovespa no período das crises de 2008 e 2020 (COVID-19). Os métodos utilizados para análise foram de correlação de Spearman, regressão linear múltipla e Teste T. O período analisado refere-se ao ano de 2008, segundo semestre de 2019 e primeiro semestre de 2020, onde englobam os períodos pré e durante as crises de 2008 e 2020. Os resultados encontrados apontam que apenas o indicador taxa total de rotatividade dos ativos possui relação significativa com a volatilidade do preço das ações.Alternate :El estudio tiene como objetivo verificar la relación entre los indicadores y la volatilidad de las acciones de los intermediarios financieros listados en el Índice BM&FBovespa en el período de las crisis de 2008 y 2020 (COVID-19). Los métodos utilizados para el análisis fueron la correlación de Spearman, la regresión lineal múltiple y la prueba T. El período analizado se refiere al año 2008, la segunda mitad de 2019 y la primera mitad de 2020, que incluyen los períodos antes y durante las crisis de 2008 y 2020. Los resultados encontrados indican que solo el indicador de tasa de rotación de activos totales tiene una relación significativa con la volatilidad del precio de las acciones.

Is intellectual capital related to telecommunications industry financial performance during COVID-19?

This study aims to examine the influence of intellectual capital on the financial performance of the telecommunications industry during the COVID-19 pandemic. The population includes the telecommunications companies listed on the Indonesia Stock Exchange in 2019-2020. Moreover, the intellectual capital performance was measured by the value-added intellectual capital coefficient (VAICTM) approach while the model was developed and hypotheses tested using linear regression analysis. The results showed that intellectual capital has a positive and significant effect on return on assets and return on equity but has no influence on earning per share. Recommendations are later made for researchers and practitioners. Copyright © 2023 Inderscience Enterprises Ltd.

Is intellectual capital related to telecommunications industry financial performance during COVID-19?

This study aims to examine the influence of intellectual capital on the financial performance of the telecommunications industry during the COVID-19 pandemic. The population includes the telecommunications companies listed on the Indonesia Stock Exchange in 2019-2020. Moreover, the intellectual capital performance was measured by the value-added intellectual capital coefficient (VAIC (TM)) approach while the model was developed and hypotheses tested using linear regression analysis. The results showed that intellectual capital has a positive and significant effect on return on assets and return on equity but has no influence on earning per share. Recommendations are later made for researchers and practitioners.

Impact of Covid-19 on firms' performance: Empirical evidence from India

The current study aims to examine the impact of the pandemic (Covid-19) on the financial performance of some of the selected Indian sectors. The study targets all Indian firms listed on the Bombay stock exchange, which belong to the following sectors (Constructing, tourism and hospitality, food and consumer sectors). The study extracted data of 444 firms from the Prowess database for four sectors. Due to some missing values, the study dropped 73 firms. Therefore, the final sample of this study consists of 371 firms. Results revealed a significant difference in total income, net sales, net profit, earnings per share, and diluted earnings per share before and after the pandemic in tourism, hospitality, and consumer sectors. The result of the study states that there is a significant difference in total income net sales before and after the pandemic in construction. There is a difference in the decline in both sectors' net sales and total income during the pandemic. Conversely, there is no significant difference between net profit, earnings per share, diluted earnings per share before and after the pandemic in constructing and food sectors. Results of the study state that the food sector was not affected by the pandemic, whereas the construction sector reduced its expenses to their minimum. The study also found that the tourism, hospitality and customer sectors were the most effected by the Covid-19 pandemic, followed by the construction sector and food sector, which was a minor sector affected by the pandemic. Most of the prior research on Covid-19 is theoretical, and only a few have conducted an empirical investigation. The study is unique as it evaluates the financial performance of Indian firms before and after the Covid-19 pandemic, which has not been studied yet in the Indian context. Further, this study provides valuable insights to regulators and policymakers about the most affected sectors due to the pandemic by analysing Indian sectors.

The Effect of COVID-19 on the Value Relevance of European Firms’ Financial Statements

The main topic of this study was the value relevance of accounting information. It employed a sample of 1,645 companies listed on the stock exchanges of the top six European Economies (in terms of GDP) – France, Germany, Italy, the Netherlands, Spain and the United Kingdom – for the period 2010-2020. The study’s analysis was based on the Ohlson model and used linear regression. The paper examines the difference between these countries in terms of value relevance. In addition, the paper examines the effects that the Covid-19 pandemic outbreak had on the value relevance of financial statements. The purpose is to examine how investors have been affected by the pandemic and the influence it has had on the importance of financial statements and specific accounting variables. Furthermore, we compare the importance of the two most significant accounting variables, earnings and book value (equity) before and after the pandemic. The results suggest that the explanatory power of financial statements is almost the same for all countries, except Germany, where it is significantly higher. The explanatory power of financial statements decreased in all countries after the start of the pandemic. Moreover, in most countries, earnings seem to have lost value relevance compared with book value due to the financial crisis. © 2022 by the authors;licensee Online Academic Press, USA.

A Giant Falls: The Impact of Evergrande on Asian Stock Indexes

The economic growth of China has been driven by the development of its real estate market, especially after the 2008 crisis. This growth is mostly related to the huge housing bubble and growing amounts of sovereign debt that have been redirected to corporations in the sector. Evergrande is one of those corporations;it is a Chinese company in the construction and real estate sector, a global giant with investments in many parts of the world. Its bond default in September 2021 sounded alerts in financial markets. Several news outlets spoke of the “next Lehman Brothers”, and apprehension was very high, especially in Asian markets. This research work aims to evaluate the impact of Evergrande’s bond default on six Asian stock markets, using an event study approach. The results show a strong reaction from the markets towards the event in study, even anticipating it. Furthermore, it is worth mentioning a quick reversion to “normal” behavior, indicating the rapid absorption of information by the markets.

Investment returns from reputation investing: do good firms provide good returns?

Purpose>This study aims to examine whether a good corporate reputation leads to superior investment returns. Theory and empirics provide support for the idea that a good corporate reputation improves firm value, but much of the previous research fails to consider the risk of the companies they study and relies only on accounting measures of performance such as return on assets. A complete picture of the relationship between corporate reputation and shareholder value should include risk-adjusted returns and correlation with benchmark returns.Design/methodology/approach>The Harris Poll Reputation Quotient (RQ), based on the reputations of the 100 most visible companies, suggests that companies with a “solid reputation” are more likely to be attractive investments. The authors construct portfolios using deciles and the RQ categories, rebalancing annually as RQ rankings are updated. Returns are adjusted for risk using Jensen's alpha, the information ratio, the Sharpe ratio, Modigliani and Modigliani's M2 measure, and Muralidhar's M3 measure.Findings>The results indicate that choosing a portfolio based on the highest RQ-ranked firms does outperform the market on a risk-adjusted basis, and that the relationship between rankings and time-weighted returns is roughly monotonic. The authors also observe that corporate reputation is persistent, and that the best and worst most-visible firms are more likely to be privately held.Originality/value>This research adds to the literature by including both market-based return measures and risk in the examination of the relationship between corporate reputation and financial performance.

Company Performance And Stock Returns In Indonesia Telecommunication Companies

This study aimed to analyze the company performance on stock return in Telecommunication Companies of Indonesia from 2012 until 2020. The company performance consists of profitability ratio as proxied by return on equity, liquidity ratio as proxied by current ratio, solvency ratio as proxied by debt to equity, activity ratio as proxied by total asset turn over, and market ratio proxied by price book value. Data were collected from the Indonesia Stock Exchange website and each related company's website. This study was conducted by a quantitative study using unbalanced panel data regression analysis. This study analyzed a new balanced panel data of 104 firm-year observations from 12 Telecommunication Companies of Indonesia. The results show that profitability ratio, liquidity ratio, solvency ratio, and activity ratio failed to affect stock returns significantly. Meanwhile, the market ratio has a significant positive effect on stock return. This study can be used as an investment guide for both individual and corporate investors. The study contains the most important fundamental analysis related to the company's financial performance, based on the company's price book value.

Using Patent Drawings to Differentiate Stock Return Rate of China Listed Companies. A Study on China Patent Species of Invention Grant

Patent is an important outcome of technological innovation. Though patent claim always caught attention when considering patent quality, it had to be supported by the drawings according to the patent examination criteria. However, patent drawing was seldom discussed. Based on the company integrated database, more than 50% of China listed companies of RMB common stocks (A-shares) from 2017Q1 to 2021Q4 were selected as effective samples. The effect of China invention grant patent’s drawing count for differentiating A-share’s stock return rate was thoroughly discussed via analysis of variation (ANOVA). The average drawing count of invention grants significantly increased over previous years. However, the total drawing count of invention grants was found to be an appropriate patent indicator for differentiating A-share’s stock return rate whereas the average drawing count of invention grants was not. The A-shares in the highest total drawing count groups of invention grants showed significantly higher stock return rate means while the A-shares in the lower total drawing count groups of invention grants showed significantly lower stock return rate means in most quarters from 2017 to 2021. The finding also proved that the patent quantity still mattered in China stock market.

Analyst forecasting during COVID-19 pandemic

PurposeThis study aims to examine the characteristics of financial analysts’ earnings forecasts after COVID-19 outbroke in the USA. Specifically, the authors examine how financial analysts tradeoff between accuracy and responsiveness under investors’ heightened information demand when there is market-wide uncertainty. In addition, the authors investigate how COVID-19 may affect analysts’ cognitive bias.Design/methodology/approachThe research uses a sample of US-listed firms from March 2019 to February 2021, the period surrounding the COVID-19 outbreak in the USA.FindingsThe empirical analyses reveal that analysts issue timelier, more frequent, but less accurate forecasts after the COVID-19 outbreak, indicating that analysts become more responsive to investors’ intensified demand for information during the pandemic. Yet, the high uncertainty caused by COVID-19 increases forecasting difficulty. There is no systematic difference regarding the forecast accuracy between high- and low-ability analysts. Meanwhile, high-quality audit can improve forecast accuracy. Contrary to prior findings that analysts tend to underreact to bad news, the empirical evidence suggests that analysts, shaped by the salience bias, overestimate the negative impact of the pandemic. Analysts first issue pessimistic forecasts at the start of the outbreak and then revise forecasts upward steadily as the fiscal year-end approaches.Originality/valueThe study contributes to the literature by adding novel evidence on how COVID-19-induced uncertainty affects analyst forecast characteristics. It also provides additional evidence on how high-quality audit is associated with improved analyst forecast accuracy even under heightened uncertainty of COVID-19.

Earnings Management, Board Composition and Earnings Persistence in Emerging Market

Income data are useful for making economic decisions and anticipating future revenues. Earning quality, or the utility of earnings in making decisions, is determined by real economic performance. Firms with greater performance should, on average, have higher profits quality. Managers, investors, and scholars are interested in the influence of earnings management (EM) on earnings persistence (EP). This study evaluates the relationship between these variables in terms of accrual, real EM, board composition, and EP. We conducted quantitative research using GMM regression on a sample of 228 listed businesses in the Vietnamese stock market from 2014 to 2017. Our findings indicate that accrual earnings management (AEM) is associated with a negative connection with EP, but real earnings management (REM) is associated with a mixed association with EP. Additionally, the data indicate that board of directors (BODs) play a critical role in EP. Our research contributes to the existing body of knowledge by establishing a foundation for future research in this subject and by proposing some feasible options for functional government agencies and enterprise management interested in enhancing EP.

Effect Of Profitability On Company Value When The Covid-19 Pandemic In The Sector Of Telecommunication Companies Registered On The Indonesian Stock Exchange

The purpose of this study is to empirically prove the effect of return on assets (ROE) on earnings per share (EPS) during the Covid-19 pandemic. The sample used is a telecommunications company listed on the Indonesia Stock Exchange (IDX) for 2020. The data is obtained from quarterly financial reports in 2020. The test in this study uses simple linear regression. The results showed that profitability had an effect on firm value in telecommunications companies. In addition, it can be observed that the growth of ROA and EPS during the 3 quarters of 2020 has fluctuated._

COVID-19 implications for corporate social responsibility, corporate governance and profitability in banks: The case of Egypt

This paper aims to measure the relationship between Corporate Social Responsibility (CSR), Corporate Governance (CG), and profitability in listed Egyptian banks. COVID-19 is expected to affect this relationship if the year 2020 is taken. Profitability is measured by earnings per share (EPS), return on equity (ROE), and return on assets (ROA). CSR is measured as a dummy variable and CG is measured by the chief executive officer (CEO) duality. There are three control variables, such as the Islamic variable, which classifies a bank into Islamic or conventional, bank age, and bank size. The paper uses multiple regression and logistic regression models. The final sample is 12 banks consisting of 9 conventional banks and 3 Islamic banks (IBS). The results show no impact of profitability on CSR. The results prove a significant positive impact of profitability on CG;there is a significant negative relationship between CEO duality and EPS at a 0.05 level. CSR has a significant impact on CG at a 0.001 level. The results show a clear impact of COVID-19 on the impact of CSR on profitability only when measured by ROA at 0.001 in the period 2014–2019. © Zakia Abdelmoneim, Mahmoud Elghazaly, 2021.

The Influence of Oil Price Volatility and Price Limit in Indonesia Energy Sub-Sector for the Period Before and After Covid-19

This study aims to analyze the determinants of the influence of oil price volatility and price limits on Energy sub-sector companies listed on the Indonesia Stock Exchange in 2018-2021 before and after Covid-19. This study uses the Eviews 10 program as information preparation and the results of irregular influence are selected to see the relationship between the dependent and independent variables which calculates oil price volatility (WTI), price limit (PL), return on assets (ROA), earnings per share (EPS) , and exchange rate (FOREX). The result is that the current proportion, the ratio of Return on Resources (ROA), and Trade Rate (FOREX) do not affect stock returns. Price limit (PL), Earning Per Share (EPS), and World Oil Cost (WTI) affect the return of shares of energy sub-sector companies, namely oil and coal which are listed on the Indonesia Stock Exchange in 2018-2021 period before and after Covid-19.