The effect of perceptions of corporate identity and corporate social responsibility practices on investment intention
Orientation: Given the growing importance of sound corporate social responsibility (CSR) and considerable corporate investment in such activities, it is essential to understand the perceived impact thereof on stakeholder behaviour. Research purpose: As young individuals are particularly passionate...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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AOSIS
2021-08-01
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| Series: | Journal of Economic and Financial Sciences |
| Subjects: | |
| Online Access: | https://jefjournal.org.za/index.php/jef/article/view/657 |
| _version_ | 1818754774318710784 |
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| author | Kara Nel Pierre D. Erasmus Nadia Mans-Kemp |
| author_facet | Kara Nel Pierre D. Erasmus Nadia Mans-Kemp |
| author_sort | Kara Nel |
| collection | DOAJ |
| description | Orientation: Given the growing importance of sound corporate social responsibility (CSR) and considerable corporate investment in such activities, it is essential to understand the perceived impact thereof on stakeholder behaviour.
Research purpose: As young individuals are particularly passionate about social responsibility, the effect of their perception of corporate identity (corporate values and corporate expertise) and CSR practices (relational, moral and discretionary actions) on their investment intention was investigated within an emerging market context.
Motivation for the study: Previous researchers mainly focused on the effects of CSR on consumers’ intention to purchase products. Limited research has been conducted to understand the effect of CSR on decisions made by other key stakeholders, including investors.
Research approach/design and method: Based on the theory of planned behaviour, a consumer behaviour-based dual-process model was adapted and tested in the investment context. An electronic questionnaire was distributed to potential young investors in the country to determine the effect of their perceptions of the CSR practices of a well-known South African financial company (Nedbank) on their intention to invest. The 1 649 responses were assessed through partial least squares structural equation modelling.
Main findings: The adapted model was deemed reliable and valid in the investment context. Discretionary and relational CSR practices had more predictive relevance towards the corporate values dimension than the corporate expertise dimension of corporate identity. Moral CSR practices predicted the perception of both dimensions, which, in turn, influenced investment intention.
Practical/managerial implications: Focus should be placed on communicating moral CSR practices, as it had a stronger prediction value (than discretionary and relational CSR practices) towards potential investors’ perceptions of the corporate expertise and values dimension of corporate identity which, in turn, strongly predicted investment intention.
Contribution/value-add: This study makes a methodological contribution, as a dual-process model accounting for corporate identity and a range of CSR practices, based on consumer behavioural constructs, was applied in the context of investment decision-making within an emerging market. |
| first_indexed | 2024-12-18T05:28:36Z |
| format | Article |
| id | doaj.art-5477a3ab004747fb97004728a6316300 |
| institution | Directory Open Access Journal |
| issn | 1995-7076 2312-2803 |
| language | English |
| last_indexed | 2024-12-18T05:28:36Z |
| publishDate | 2021-08-01 |
| publisher | AOSIS |
| record_format | Article |
| series | Journal of Economic and Financial Sciences |
| spelling | doaj.art-5477a3ab004747fb97004728a63163002022-12-21T21:19:29ZengAOSISJournal of Economic and Financial Sciences1995-70762312-28032021-08-01141e1e1110.4102/jef.v14i1.657446The effect of perceptions of corporate identity and corporate social responsibility practices on investment intentionKara Nel0Pierre D. Erasmus1Nadia Mans-Kemp2Department of Business Management, Faculty of Economic and Management Sciences, Stellenbosch University, StellenboschDepartment of Business Management, Faculty of Economic and Management Sciences, Stellenbosch University, StellenboschDepartment of Business Management, Faculty of Economic and Management Sciences, Stellenbosch University, StellenboschOrientation: Given the growing importance of sound corporate social responsibility (CSR) and considerable corporate investment in such activities, it is essential to understand the perceived impact thereof on stakeholder behaviour. Research purpose: As young individuals are particularly passionate about social responsibility, the effect of their perception of corporate identity (corporate values and corporate expertise) and CSR practices (relational, moral and discretionary actions) on their investment intention was investigated within an emerging market context. Motivation for the study: Previous researchers mainly focused on the effects of CSR on consumers’ intention to purchase products. Limited research has been conducted to understand the effect of CSR on decisions made by other key stakeholders, including investors. Research approach/design and method: Based on the theory of planned behaviour, a consumer behaviour-based dual-process model was adapted and tested in the investment context. An electronic questionnaire was distributed to potential young investors in the country to determine the effect of their perceptions of the CSR practices of a well-known South African financial company (Nedbank) on their intention to invest. The 1 649 responses were assessed through partial least squares structural equation modelling. Main findings: The adapted model was deemed reliable and valid in the investment context. Discretionary and relational CSR practices had more predictive relevance towards the corporate values dimension than the corporate expertise dimension of corporate identity. Moral CSR practices predicted the perception of both dimensions, which, in turn, influenced investment intention. Practical/managerial implications: Focus should be placed on communicating moral CSR practices, as it had a stronger prediction value (than discretionary and relational CSR practices) towards potential investors’ perceptions of the corporate expertise and values dimension of corporate identity which, in turn, strongly predicted investment intention. Contribution/value-add: This study makes a methodological contribution, as a dual-process model accounting for corporate identity and a range of CSR practices, based on consumer behavioural constructs, was applied in the context of investment decision-making within an emerging market.https://jefjournal.org.za/index.php/jef/article/view/657corporate identitycsrinvestment intentionperceptiontheory of planned behaviouryoung individuals |
| spellingShingle | Kara Nel Pierre D. Erasmus Nadia Mans-Kemp The effect of perceptions of corporate identity and corporate social responsibility practices on investment intention Journal of Economic and Financial Sciences corporate identity csr investment intention perception theory of planned behaviour young individuals |
| title | The effect of perceptions of corporate identity and corporate social responsibility practices on investment intention |
| title_full | The effect of perceptions of corporate identity and corporate social responsibility practices on investment intention |
| title_fullStr | The effect of perceptions of corporate identity and corporate social responsibility practices on investment intention |
| title_full_unstemmed | The effect of perceptions of corporate identity and corporate social responsibility practices on investment intention |
| title_short | The effect of perceptions of corporate identity and corporate social responsibility practices on investment intention |
| title_sort | effect of perceptions of corporate identity and corporate social responsibility practices on investment intention |
| topic | corporate identity csr investment intention perception theory of planned behaviour young individuals |
| url | https://jefjournal.org.za/index.php/jef/article/view/657 |
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