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Journal ArticleDOI

An Institutional Theory Approach to the Evolution of the Corporate Social Performance – Corporate Financial Performance Relationship

Jacob Brower, +1 more
- 01 Jun 2020 - 
- Vol. 57, Iss: 4, pp 805-836
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TLDR
In this paper, the authors integrate research from the dynamic institutional theory literature to develop a set of theory-driven hypotheses regarding how the institutionalization of corporate social performance (CSP) in the organizational field over the period 1991-2008 impacts the CSP corporate financial performance.
Abstract
In the present study, we integrate research from the dynamic institutional theory literature to develop a set of theory‐driven hypotheses regarding how the institutionalization of corporate social performance (CSP) in the organizational field over the period 1991–2008 impacts the CSP‐ corporate financial performance (CFP) relationship for firms in the marketplace. The results of our panel time series and dynamic linear estimation models suggest that early CSP adopters are more likely to experience both greater firm profitability and increased stock market valuation as a result of their higher CSP levels. However, they also tend to incur more firm‐idiosyncratic risk for being ahead of the market’s CSP expectations. We also demonstrate that the significant rise in CSP adoption and activities over time, as CSP has become institutionalized, has resulted in CSP becoming a weaker driver of both firm profitability and stock market valuation.

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Citations
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The Evolution of Resource-Based Inquiry: A Review and Meta-Analytic Integration of the Strategic Resources–Actions–Performance Pathway:

TL;DR: This work uses meta-analytic structural equation modeling to aggregate evidence from 255 samples involving 111,614 observations to answer outstanding research questions regarding the strategic resources–actions–performance pathway, and shows strong complementarity and interdependence between their logics.
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Adaptive Life Cycle Costing (LCC) Modeling and Applying to Italy Ceramic Tile Manufacturing Sector: Its Implication of Open Innovation

TL;DR: In this paper, the authors analyzed the Italian ceramic tile manufacturing sector as a case study in order to conceptually develop, through the abductive methodology, a calculation framework that extends the potential of LCC by including circularity parameters.
Journal ArticleDOI

Corporate Social Performance and the Likelihood of Bankruptcy: Evidence from a Period of Economic Upswing

TL;DR: In this paper, the authors investigate the effects of corporate social performance (CSP) on bankruptcy likelihood in times of economic upswing and conclude that the positive effects of CSP on stakeholder relationships fail to materialize in flourishing business environments.
References
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Journal ArticleDOI

Institutionalized Organizations: Formal Structure as Myth and Ceremony

TL;DR: Many formal organizational structures arise as reflections of rationalized institutional rules as discussed by the authors, and the elaboration of such rules in modern states and societies accounts in part for the expansion and i...
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On Persistence in Mutual Fund Performance

Mark M. Carhart
- 01 Mar 1997 - 
TL;DR: Using a sample free of survivor bias, this paper showed that common factors in stock returns and investment expenses almost completely explain persistence in equity mutual fund's mean and risk-adjusted returns.
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Corporate Social and Financial Performance: A Meta-Analysis

TL;DR: This article conducted a meta-analysis of 52 studies and found that corporate virtue in the form of social responsibility and, to a lesser extent, environmental responsibility is likely to pay off, although the operationalizations of CSP and CFP also moderate the positive association.
Journal ArticleDOI

The corporate social performance-financial performance link

TL;DR: In this article, the authors report the results of a rigorous study of the empirical linkages between financial and social performance, finding that corporate social performance (CSP) is positively associated with prior financial performance, supporting the theory that slack resource availability and CSP are positively related.
Journal ArticleDOI

Corporate Social Performance Revisited

TL;DR: In this article, the authors define corporate social performance (CSP) and reformulate the CSP model to build a coherent, integrative framework for business and society research, where principles of social responsibility are framed at the institutional, organizational, and individual levels; processes of social responsiveness are shown to be environmental assessment, stakeholder management, and issues management; and outcomes of CSP are posed as social impacts, programs, and policies.
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