The Influence of Corporate Social Responsibility and Equity Structure on Cash Value

• Main Authors: Chieh Hsu, 徐婕
• Other Authors: Jia-Chi Cheng
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/d3cgkg

碩士 === 元智大學 === 財務金融暨會計碩士班(會計學程) === 107 === This study focuses on investigating the companies that have obtained the Corporate Social Responsibility "Citizen of the World" award from 2007 to 2017. The paper discusses the impact of corporate governance on cash value from the perspective of corporate social responsibility and equity structure, respectively. Furthermore, this study explores the interactive impact of corporate social responsibility and equity structure on cash value. The empirical results show that corporate social responsibility can effectively reduce agency problems and mitigate information asymmetry by issuing CSR reports to inform the public the use of cash and the company's direction for future corporate policies. Thus, the public believed that managers will not have self-interested behavior and then increase the value of cash. I employ the three proxy variables of equity structures including independent director duality, shareholdings of managers, and shareholdings of institutional investors. The empirical results show that shareholdings of managers and independent director duality have the positive impact on cash value. It is consistent with the consolidation effect of managers’ shareholdings and the reputational effects of independent director. When considering the interaction effect of equity structure and corporate social responsibility, the empirical results show that equity structure plays a more important role in corporate governance than corporate social responsibility to increase the cash value.