The Impact of Corporate Social Responsibility on the Investment Attractiveness of the Russian Companies
Investigation of the impact of corporate social responsibility (CSR) and environmental responsibility on the economic performance over the past decades has shown that the implementation of CSR is one of the key drivers of value creation. Disclosure of social policy is one of the key CSR areas, it...
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| Format: | Article |
| Language: | English |
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Russian Academy of Sciences, Institute of Economics of the Ural Branch
2017-03-01
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| Series: | Экономика региона |
| Subjects: | |
| Online Access: | http://www.economyofregion.com/archive/2017/64/2910/pdf/ |
| _version_ | 1797722292485095424 |
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| author | Natalia Removna Kelchevskaya Ilia Mikhaylovich Chernenko Ekaterina Vladimirovna Popova |
| author_facet | Natalia Removna Kelchevskaya Ilia Mikhaylovich Chernenko Ekaterina Vladimirovna Popova |
| author_sort | Natalia Removna Kelchevskaya |
| collection | DOAJ |
| description | Investigation of the impact of corporate social responsibility (CSR) and environmental responsibility on the economic
performance over the past decades has shown that the implementation of CSR is one of the key drivers of value creation.
Disclosure of social policy is one of the key CSR areas, it reduces information asymmetry and also contributes to the company’s
reputation, decreasing uncertainty and risk in the assessment of the internal environment. This study shows that the disclosure
of CSR information is able to increase the investment attractiveness of companies, and reduce the cost of equity. In the last
decade, Russian industry has accumulated considerable positive experience in the implementing and positioning of corporate
social responsibility (CSR) technologies, which has yet to be assessed. In this paper, we used the sample of social reports of 18
Russian companies in the period from 2004 to 2014. The authors provided content-analysis of information disclosure dimensions
including staff training, social policy, charity and environmental responsibility. In contrast to other studies, the results show
a comparatively moderate impact of disclosure on the cost of equity capital. Also, we found that different dimensions of the disclosure have an ambiguous impact on the investment attractiveness of companies. Our results allow formulating practical
recommendations for the management of metallurgical, oil and gas Russian companies to increase their investment attractiveness,
in particular, a prudent choice of CSR information for disclosure. The study is unique for the Russian practice of evaluating the
effectiveness of CSR, as it is based on a sample of the largest industrial enterprises |
| first_indexed | 2024-03-12T09:45:26Z |
| format | Article |
| id | doaj.art-caf8bc0387ed4d4c94976c9d62d153e6 |
| institution | Directory Open Access Journal |
| issn | 2072-6414 2411-1406 |
| language | English |
| last_indexed | 2024-03-12T09:45:26Z |
| publishDate | 2017-03-01 |
| publisher | Russian Academy of Sciences, Institute of Economics of the Ural Branch |
| record_format | Article |
| series | Экономика региона |
| spelling | doaj.art-caf8bc0387ed4d4c94976c9d62d153e62023-09-02T12:55:38ZengRussian Academy of Sciences, Institute of Economics of the Ural BranchЭкономика региона2072-64142411-14062017-03-0113115716910.17059/2017–1–15The Impact of Corporate Social Responsibility on the Investment Attractiveness of the Russian CompaniesNatalia Removna Kelchevskaya0Ilia Mikhaylovich Chernenko 1Ekaterina Vladimirovna Popova2Ural Federal University named after the first President of Russia B.N.Yeltsin Ural Federal University named after the first President of Russia B.N.Yeltsin Surgut State UniversityInvestigation of the impact of corporate social responsibility (CSR) and environmental responsibility on the economic performance over the past decades has shown that the implementation of CSR is one of the key drivers of value creation. Disclosure of social policy is one of the key CSR areas, it reduces information asymmetry and also contributes to the company’s reputation, decreasing uncertainty and risk in the assessment of the internal environment. This study shows that the disclosure of CSR information is able to increase the investment attractiveness of companies, and reduce the cost of equity. In the last decade, Russian industry has accumulated considerable positive experience in the implementing and positioning of corporate social responsibility (CSR) technologies, which has yet to be assessed. In this paper, we used the sample of social reports of 18 Russian companies in the period from 2004 to 2014. The authors provided content-analysis of information disclosure dimensions including staff training, social policy, charity and environmental responsibility. In contrast to other studies, the results show a comparatively moderate impact of disclosure on the cost of equity capital. Also, we found that different dimensions of the disclosure have an ambiguous impact on the investment attractiveness of companies. Our results allow formulating practical recommendations for the management of metallurgical, oil and gas Russian companies to increase their investment attractiveness, in particular, a prudent choice of CSR information for disclosure. The study is unique for the Russian practice of evaluating the effectiveness of CSR, as it is based on a sample of the largest industrial enterpriseshttp://www.economyofregion.com/archive/2017/64/2910/pdf/corporate social responsibilityinformation disclosurecost of equity capitalinvestment attractivenessmetallurgyoil and gas industryindustry |
| spellingShingle | Natalia Removna Kelchevskaya Ilia Mikhaylovich Chernenko Ekaterina Vladimirovna Popova The Impact of Corporate Social Responsibility on the Investment Attractiveness of the Russian Companies Экономика региона corporate social responsibility information disclosure cost of equity capital investment attractiveness metallurgy oil and gas industry industry |
| title | The Impact of Corporate Social Responsibility on the Investment Attractiveness of the Russian Companies |
| title_full | The Impact of Corporate Social Responsibility on the Investment Attractiveness of the Russian Companies |
| title_fullStr | The Impact of Corporate Social Responsibility on the Investment Attractiveness of the Russian Companies |
| title_full_unstemmed | The Impact of Corporate Social Responsibility on the Investment Attractiveness of the Russian Companies |
| title_short | The Impact of Corporate Social Responsibility on the Investment Attractiveness of the Russian Companies |
| title_sort | impact of corporate social responsibility on the investment attractiveness of the russian companies |
| topic | corporate social responsibility information disclosure cost of equity capital investment attractiveness metallurgy oil and gas industry industry |
| url | http://www.economyofregion.com/archive/2017/64/2910/pdf/ |
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