The Journal of Society for e-Business Studies (한국전자거래학회지)

Society for e-Business Studies (한국전자거래학회)
권호 표지
DOI QR코드

DOI QR Code

The Effect of Corporate Social Responsibility Activities on Corporate Earnings Persistence: Financial Companies

기업의 사회적 책임활동이 기업의 이익지속성에 미치는 영향: 금융 기업을 중심으로

  • Park, AJin (College of Business and Economics, Sangmyung University) ;
  • Kim, JeongYeon (College of Business and Economics, Sangmyung University)
  • Received : 2020.10.21
  • Accepted : 2020.11.02
  • Published : 2020.11.30
Download PDF
⟨ Previous Next ⟩

Abstract

Although many studies have been conducted on the impact of increasing social awareness of corporate social responsibility activities on financial and non-financial performances, the number of studies conducted by financial companies is relatively small compared to those conducted by non-financial companies such as manufacturing and service industries. Accordingly, this study explores the impact of corporate social responsibility activities on the Earnings Persistence of financial companies through a regression analysis that utilizes the conversion score of an ESG rating of a Korean listed company provided by the Korea Corporate Governance Service (KCGS) as a variable for the company's social responsibility activities. Through this analysis, the study found that, among the ESG scores that are variables of social responsibility activities, the ESG governance score was significant in the direction of (+) for the Earnings Persistence. In addition, the same study conducted by classifying the entire sample into six sub-industries shows that the ESG governance score in the banking industry was more significant compared to when the regression analysis was conducted on the entirety of the samples. Therefore, this study concludes that the soundness and reliability of corporate governance have a positive effect on Corporate Earnings Persistence.

오늘날 기업의 사회적 책임활동에 대한 사회적 인식이 증대됨에 따라 기업의 재무적·비재무적 성과에 미치는 영향력에 관한 연구가 많이 진행되고 있다. 그러나 대부분의 연구는 금융 기업이 아닌 제조업, 서비스업 같은 비금융기업을 대상으로 하고 있다. 이에 따라 본 연구는 금융 기업을 대상으로 기업의 사회적 책임활동이 기업의 이익지속성에 미치는 영향에 대해 연구하였다. 본 연구는 우리나라 상장 기업의 ESG 등급의 환산점수를 기업의 사회적 책임활동에 대한 변용변수로 하여 기업의 당기 이익지속성에 미치는 영향을 분석하였다. 이러한 분석에 따라 본 연구는 사회적 책임활동의 변용변수인 ESG 점수 중 ESG 지배구조 점수가 당기 이익지속성에 대하여 유의하다는 결과를 도출하였다. 또한 금융기업을 6개의 세부 업종으로 분류하여 동일한 연구를 진행한 결과 은행업에서 ESG 지배구조 점수가 당기 이익지속성에 대해 전체표본을 대상으로 분석하였을 때 보다 높은 수준의 유의성을 보였다. 이러한 분석을 통해 지배구조의 건전성과 신뢰성이 기업의 이익 지속성에 긍정적 영향을 미친다는 것을 알 수 있다.

Keywords

References

  1. Cho, M. K. and Kim, S. Y., "The Effect of Corporate Social Responsibility on Earnings Quality," Tax Accounting Research, No. 41, pp. 213-231, 2014.
  2. Choi, H. J. and Moon, D. C., "The Relationship between Corporate Social Responsibilities and Accounting Transparency," Korean Accounting Review, Vol. 38, No. 1, pp. 135-171, 2013.
  3. Hong, Y. D. and Kim, K. S., "Earnings Persistence and Investors' Assessments of the Persistence for the Earning Management and Tax Avoidance Firms with Large Positive Book-Tax Differences, Korean Accounting Journal, Vol. 25, No. 1, pp. 381-421, 2016.
  4. Jeon, C. S. and Yoo, Y. J., "The Influence of Food-Service's Socially Responsible Activities on Consumer-Company Identification, Corporate Image, and Word of Mouth," Tourism Research, Vol. 40, No. 1, pp. 21-44, 2015.
  5. Jo, S. T., "The Effect of Environmental Performance on the Profitability of Enterprisel," Journal of Environmental Policy and Administration, Vol. 25, No. 2, pp. 87-105, 2017. https://doi.org/10.15301/jepa.2017.25.2.87
  6. Kim, D. S. and Park, D. W., "An Empirical Study On the Relations among Corporate Governance Strength, its Effectiveness, and Earnings Quality," Korean Corporation Management Review, Vol. 20, No. 2, pp. 125-149, 2013.
  7. Kim, J. H. and Lim, J. I., "Composition and Policy Direction of Compensation Insurance Against Customer Information Infringements in Financial Transactions," The Journal of Society for e-Business Studies, Vol. 19, No. 3, pp. 1-21, 2014. https://doi.org/10.7838/jsebs.2014.19.3.001
  8. Kim, J. K. and Park, H. J., "The Effect of Income Persistence on the Share of Foreign Investors," Journal of New Industry and Business, Vol. 23, No. 2, pp. 25-44, 2005.
  9. Kim, M. S., Kim, Y. H., and Kim, M. C., "The Impact of Investment and Expenses for Environmental Management Activities on Firm Value," Review of Accounting and Policy Studies, Vol. 15, No. 2, pp. 119-141, 2010.
  10. Kim, N. G. and Yoon, D. H., "An effect of social responsibility activities on employees' attitudes related to job," Korean Review of Corporation Management, Vol. 2, No. 2, pp. 67-87, 2011.
  11. Kim, S. H. and Oh, B. K., "Factors Affecting Sustainable Web Technology Adoption Pro-social Behavior Perspectives," The Journal of Society for e-Business Studies, Vol. 19, No. 4, pp. 205-229, 2014. https://doi.org/10.7838/jsebs.2014.19.4.205
  12. Kim, T. H., "The efficiency of valuation and persistence of accruals and cash flows by the level of social responsibility activities," Tax Accounting Research, No. 58, pp. 25-55, 2018.
  13. Kim, Y. J. and Hong, J. Y., "The Effect of Business Strategy on Corporate Social Responsibility Activities and Corporate Performance," Korean Accounting Journal, Vol. 27, No. 3, pp. 127-161, 2018. https://doi.org/10.24056/kaj.2018.05.006
  14. Kwon, H. S., "The Effect of Corporate Social Responsibility on Accounting Information Quality Focused on Financial Industry," Tax Accounting Research, No. 50, pp. 193-211, 2016. https://doi.org/10.35349/TAR.2016..50.010
  15. Lee, H. S. and Kim, G. S., "The Study on the Impact of the Corporate Sustainability Management on the Earnings Quality, Tax Avoidance and the Firm Value," journal of taxation and accounting, Vol. 16, No. 5, pp. 209-242, 2015.
  16. Lee, J. S., "The Effect of ESG and Forei-gner's Shares on Accounting Conservatism," Journal of Finance and Accounting Information Vol. 19, No. 1, pp. 37-59, 2019. https://doi.org/10.29189/kaiajfai.19.1.2
  17. Lee, K. J., "The Relation of Operating Earnings Persistence and the Accuracy of Management Operating Earnings Forecast," No. 30, pp. 1-17, 2011.
  18. Lee, S. C., "Earnings Persistence, Earnings Smoothing and Financial Analysts' Forecast Accuracy," Journal of Finance and Accounting Information, Vol. 12, No. 2, pp. 61-80, 2012.
  19. Lee, W. G. and Lee, K. W., "The Information Effect of Dividends through the Earnings Persistence: A Contrast between profit firms and loss firms," Korean Accounting Journal, Vol. 16, No. 3, pp. 169-195, 2007.
  20. Moon, H. J., "A Comparison of Earnings Persistence under Korean GAAP versus IFRS," Journal of Taxation and Accounting, Vol. 12, No. 4, pp. 45-68, 2011.
  21. Moon, S. H. and Park, J. K., "The Corporate Governance, Earnings Persistence and Value Relevance," A.I.R, Vol. 23, No. 3, pp. 1-28, 2005.
  22. Oh, D. K., Cin, B. C., and Lee, E. Y., "Effect of corporate social contribution on corporate financial performance," Journal of International Area Studies, Vol. 20, No. 3, pp. 101-121, 2016.
  23. Oh, G. H. and Kang, S. M., "A Study on Relationship between Corporate Sustainability Management and Earnings Persistence," Tax Accounting Research, No. 50, pp. 1-18, 2016. https://doi.org/10.35349/TAR.2016..50.001
  24. Park, J. Y., "Impacts of Corporate Social Responsibility on Earnings management, Earnings Quality and Firm Value," Dankook University Graduate School, 2013.
  25. Ryu, S. Y. and Kim, D. H., "The effects of CEO's conservative tendency and the level of corporate social responsibility on earnings persistence," Journal of Distribution and Management Research, Vol. 19, No. 1, pp. 21-33, 2016. https://doi.org/10.17961/jdmr.19.1.201602.21
  26. Shim, C. J. and Oh, J. W., "A Study on Earnings' Persistence, Equity Costs, and Growth," A.I.R, Vol. 31, No. 2, pp. 293-314, 2013.
  27. Sim, H. S., "Effects of Consumers' Perception of the Different types of CSR on the Corporate Brand Equity," Services Marketing Journal, Vol. 9, No. 2, pp. 15-33, 2016.
  28. Yoon, D. B., "Status and Role of Outside Director in Electronic Commercial Law," Journal of KECRA, Vol. 10, No. 2, pp. 3-19, 2009.
  29. Yoon, S. P., "The effect of corporate social responsibility(CSR) on brand equity: Focusing on the moderating effect of authenticity," Journal of Hospitality and Tourism Studies, Vol. 20, No. 2, pp. 17-34, 2018. https://doi.org/10.31667/jhts.2018.06.20.2.17
  30. Yu, S. W., "The Effect of Hotel Corporate Social Responsibility Activity on Hotel Image and Service Orientation," Northeast Asia Tourism Research, Vol. 10, No. 4, pp. 83-102, 2014