Do Korean chaebols practice noblesse oblige? Evidence from their CSR activities
DOI:
https://doi.org/10.17811/ebl.10.1.2021.45-57Resumen
This study analyzes the corporate social responsibility (CSR) activities of the Korean chaebols to establish whether these firms engage in social duties and practice noblesse oblige. To measure the extent of the CSR activities, we use the index of the Korean Economic Justice Institute (KEJI) from 2005 to 2017. We find that the level of the CSR activity among chaebol firms with weak governance is low. Moreover, we show that chaebol firms with credit rating concerns reduce their CSR activities. Overall, our results indicate that Korean chaebols tend to neglect the CSR activities.Citas
Almeida, H., Kim, C.S., Kim, H.B., 2015. Internal capital markets in business groups: evidence from the Asian financial crisis. Journal of Finance 70(6), 2539-2586.
Bereskin, F., Kim, B., Oh, F.D., 2015. Do credit rating concerns lead to better corporate governance? Evidence from Korea. Pacific-Basin Finance Journal 35(PB), 592-608.
Boutin-Dufresne, F., Savaria, P., 2004. Corporate social responsibility and financial risk. Journal of Investing 13(1), 57-66.
Cheng, B., Ioannou, I., Serafeim, G., 2014. Corporate social responsibility and access to finance. Strategic Management Journal 35(1), 1-23.
Claessens, S., Djankov, S., Lang, L.H., 2000. The separation of ownership and control in East Asian corporations. Journal of Financial Economics 58(1), 81-112.
Cochran, P.L., Wood, R.A., 1984. Corporate social responsibility and financial performance. Academy of Management Journal 27(1), 42-56.
Goss, A., Roberts, G.S., 2011. The impact of corporate social responsibility on the cost of bank loans. Journal of Banking and Finance 35(7), 1794-1810.
Hillman, A.J., Keim, G.D., 2001. Shareholder value, stakeholder management, and social issues: what's the bottom line? Strategic Management Journal 22(2), 125-139.
Joe, D.Y., Oh, F.D., 2018. Spillover effects within business groups: the case of Korean chaebols. Management Science 64(3), 1396-1412.
Joh, S.W., 2003. Corporate governance and firm profitability: evidence from Korea before the economic crisis. Journal of Financial Economics 68(2), 287-322.
Kim, E.H., Kim, W., 2008. Changes in Korean corporate governance: a response to crisis. Journal of Applied Corporate Finance 20(1), 47-58.
Kisgen, D.J., 2006. Credit ratings and capital structure. Journal of Finance 61(3), 1035-1072.
McGuire, J.B., Sundgren, A., Schneeweis, T., 1988. Corporate social responsibility and firm financial performance. Academy of Management Journal 31(4), 854-872.
McWilliams, A., Siegel, D., 2000. Corporate social responsibility and financial performance: correlation or misspecification? Strategic Management Journal 21(5), 604-609
Nam, Y.S., 2013. The changing landscape of corporate social responsibility in Korea. Revista de EDUCAÇÃO do Cogeime 20(38), 145-158.
Nam, Y.S., Jun, H., 2011. The shaping of corporate social responsibility in Korea’s economic development. Global Journal of Business Management and Accounting 1(1), 10-20.
O’Brien, R.M., 2007. A caution regarding rules of thumb for variance inflation factors. Quality and Quantity 41(5), 673-690.
Oh, W.Y., Chang, Y.K., Martynov, A., 2011. The effect of ownership structure on corporate social responsibility: empirical evidence from Korea. Journal of Business Ethics 104(2), 283-297.
Padgett, R.C., Galan, J.I., 2010. The effect of R&D intensity on corporate social responsibility. Journal of Business Ethics 93(3), 407-418.
Tsoutsoura, M., 2004. Corporate social responsibility and financial performance. Working Paper, University of California.
Vilanova, M., Lozano, J.M., Arenas, D., 2009. Exploring the nature of the relationship between CSR and competitiveness. Journal of Business Ethics 87(1), 57-69.
Waddock, S.A., Graves, S.B., 1997. The corporate social performance-financial performance link. Strategic Management Journal 18(4), 303-319.
Zhang, R., Zhu, J., Yue, H., Zhu, C., 2010. Corporate philanthropic giving, advertising intensity, and industry competition level. Journal of Business Ethics 94(1), 39-52.
Descargas
Publicado
Cómo citar
Número
Sección
Licencia
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.
