Disclosure of CSR Performance and Firm Value: New Evidence from South Africa on the Basis of the GRI Guidelines for Sustainability Disclosure
Prior CSR and firm performance research has produced mixed results. Even so, numerous researches examining this relationship from the perspective of international standardisation have primarily concentrated on developed economics. This leaves an obvious gap within the extant literature with regards...
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doaj-5c953b49a9e0409fbc634fb0a4da44b42020-11-24T21:28:54ZengMDPI AGSustainability2071-10502018-11-011012451810.3390/su10124518su10124518Disclosure of CSR Performance and Firm Value: New Evidence from South Africa on the Basis of the GRI Guidelines for Sustainability DisclosureFrank Sampong0Na Song1Kingsley Osei Boahene2Kwame Ansong Wadie3School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, ChinaSchool of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, ChinaSchool of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, ChinaSchool of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, ChinaPrior CSR and firm performance research has produced mixed results. Even so, numerous researches examining this relationship from the perspective of international standardisation have primarily concentrated on developed economics. This leaves an obvious gap within the extant literature with regards to evidence from sub-Saharan Africa. The aim of this study is to investigate the relationship between the extent of CSR disclosure performance and firm value, in an emerging institutional setting. Using hand collected data of South African listed companies, we apply the GRI G3.1 guidelines, as a measure of disclosure performance. Based on the panel data fixed effect model, we document a positive but insignificant relationship between CSR disclosure performance and firm value. Secondly, a negative and insignificant relationship was found between environmental disclosure performance and firm value. Lastly, we found a positive and statistically significant relationship between social disclosure performance and firm value. Overall, our findings suggest that CSR disclosure has a limited effect on firm value. Our findings hold for a set of robustness tests. Our findings suggest that the incorporation of sustainability disclosure, on the basis of GRI, is moderately high among the selected companies. Implications of our results suggest that CSR disclosure may not necessarily influence firm value, despite its numerous benefits. We contribute to this line of research from a multi-theoretical perspective.https://www.mdpi.com/2071-1050/10/12/4518corporate social responsibilityfirm valueGRIstakeholder theorylegitimacy theorySouth Africa |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Frank Sampong Na Song Kingsley Osei Boahene Kwame Ansong Wadie |
spellingShingle |
Frank Sampong Na Song Kingsley Osei Boahene Kwame Ansong Wadie Disclosure of CSR Performance and Firm Value: New Evidence from South Africa on the Basis of the GRI Guidelines for Sustainability Disclosure Sustainability corporate social responsibility firm value GRI stakeholder theory legitimacy theory South Africa |
author_facet |
Frank Sampong Na Song Kingsley Osei Boahene Kwame Ansong Wadie |
author_sort |
Frank Sampong |
title |
Disclosure of CSR Performance and Firm Value: New Evidence from South Africa on the Basis of the GRI Guidelines for Sustainability Disclosure |
title_short |
Disclosure of CSR Performance and Firm Value: New Evidence from South Africa on the Basis of the GRI Guidelines for Sustainability Disclosure |
title_full |
Disclosure of CSR Performance and Firm Value: New Evidence from South Africa on the Basis of the GRI Guidelines for Sustainability Disclosure |
title_fullStr |
Disclosure of CSR Performance and Firm Value: New Evidence from South Africa on the Basis of the GRI Guidelines for Sustainability Disclosure |
title_full_unstemmed |
Disclosure of CSR Performance and Firm Value: New Evidence from South Africa on the Basis of the GRI Guidelines for Sustainability Disclosure |
title_sort |
disclosure of csr performance and firm value: new evidence from south africa on the basis of the gri guidelines for sustainability disclosure |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2018-11-01 |
description |
Prior CSR and firm performance research has produced mixed results. Even so, numerous researches examining this relationship from the perspective of international standardisation have primarily concentrated on developed economics. This leaves an obvious gap within the extant literature with regards to evidence from sub-Saharan Africa. The aim of this study is to investigate the relationship between the extent of CSR disclosure performance and firm value, in an emerging institutional setting. Using hand collected data of South African listed companies, we apply the GRI G3.1 guidelines, as a measure of disclosure performance. Based on the panel data fixed effect model, we document a positive but insignificant relationship between CSR disclosure performance and firm value. Secondly, a negative and insignificant relationship was found between environmental disclosure performance and firm value. Lastly, we found a positive and statistically significant relationship between social disclosure performance and firm value. Overall, our findings suggest that CSR disclosure has a limited effect on firm value. Our findings hold for a set of robustness tests. Our findings suggest that the incorporation of sustainability disclosure, on the basis of GRI, is moderately high among the selected companies. Implications of our results suggest that CSR disclosure may not necessarily influence firm value, despite its numerous benefits. We contribute to this line of research from a multi-theoretical perspective. |
topic |
corporate social responsibility firm value GRI stakeholder theory legitimacy theory South Africa |
url |
https://www.mdpi.com/2071-1050/10/12/4518 |
work_keys_str_mv |
AT franksampong disclosureofcsrperformanceandfirmvaluenewevidencefromsouthafricaonthebasisofthegriguidelinesforsustainabilitydisclosure AT nasong disclosureofcsrperformanceandfirmvaluenewevidencefromsouthafricaonthebasisofthegriguidelinesforsustainabilitydisclosure AT kingsleyoseiboahene disclosureofcsrperformanceandfirmvaluenewevidencefromsouthafricaonthebasisofthegriguidelinesforsustainabilitydisclosure AT kwameansongwadie disclosureofcsrperformanceandfirmvaluenewevidencefromsouthafricaonthebasisofthegriguidelinesforsustainabilitydisclosure |
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