Assessing the role that perception of corporate identity and corporate social responsibility practices play in the investment intention of potential individual investors
| dc.contributor.advisor | Erasmus, Pierre D. | en_ZA |
| dc.contributor.advisor | Mans-Kemp, Nadia | en_ZA |
| dc.contributor.author | Nel, Kara | en_ZA |
| dc.contributor.other | Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Business Management. | en_ZA |
| dc.date.accessioned | 2020-10-31T16:59:33Z | |
| dc.date.accessioned | 2021-01-31T19:38:45Z | |
| dc.date.available | 2020-10-31T16:59:33Z | |
| dc.date.available | 2021-01-31T19:38:45Z | |
| dc.date.issued | 2020-12 | |
| dc.description | Thesis (MCom)--Stellenbosch University, 2020. | en_ZA |
| dc.description.abstract | ENGLISH ABSTRACT: Worldwide, an increasing number of companies are using corporate social responsibility (CSR) activities as a business tool to promote financial returns, cultivate a favourable reputation, and enhance workforce productivity. Given the growing importance of sound CSR practices and considerable corporate investment in CSR activities, it is essential to understand how these activities impact on decisions made by different stakeholders. Previous researchers mainly focused on the effects of CSR on customers’ intent to purchase. Very limited research has been conducted to understand the effect of CSR on other key stakeholders, including investors. While traditional finance theories are based on the assumption that rational investors evaluate investment decisions purely on risk-return considerations, behavioural finance theory proposes that investors’ attitudes towards a particular firm could influence their decision to invest in the firm. This study was undertaken to address the identified knowledge gap by assessing the role that perception of corporate identity and CSR practices play in the investment intention of potential individual investors, by adapting a dual-process model that was developed based on consumer behavioural constructs. The first part of the model accounted for the bond between an investor and the selected company (Nedbank) in terms of corporate identity. The second part of the model incorporated investors’ perceptions of the specific CSR practices of Nedbank. The model was assessed by an electronic questionnaire distributed to all students registered at Stellenbosch University during the second semester of 2019. In response to this invitation, 1 649 usable questionnaires were received. The descriptive statistics revealed that the respondents had a positive perception of Nedbank’s corporate identity. They perceived Nedbank to perform better on the corporate expertise than the corporate values dimension. Although the respondents had a very favourable attitude towards CSR initiatives in general, they were concerned that Nedbank performed poorly regarding some of their CSR practices. The results furthermore indicated that the respondents were not really familiar with Nedbank’s CSR practices. The partial least square structural equation modelling inferential analysis indicated that discretionary and relational CSR practices had more predictive relevance towards corporate values than corporate expertise, while moral CSR practices strongly predicted the perception of both dimensions. In turn, the perception of both corporate values and corporate expertise strongly predicted investment intention. Although corporate expertise and corporate values acted as mediators between all the types of CSR practices and investment intention, the significance was weak. The effect of CSR familiarity on investment intention was neither mediated by corporate values nor corporate expertise. The results revealed that CSR familiarity had a strong positive direct effect on investment intention. Based on the results, the researcher recommends that CSR programmes should effectively be communicated and promoted to investors as it plays a significant role in their investment decision-making. Furthermore, companies are encouraged to commence their CSR journey by addressing moral CSR practices as it was shown to be the most beneficial in enhancing potential investors’ perceptions of corporate identity and, therefore, their investment intention. Companies should continuously focus on their CSR behaviour to attract potential investors. | en_ZA |
| dc.description.abstract | AFRIKAANSE OPSOMMING: Wêreldwyd gebruik ondernemings toenemend korporatiewe sosiale verantwoordelikheid (KSV) aktiwiteite as ʼn besigheidsinstrument om finansiële opbrengste te bevorder, ʼn gunstige reputasie te bou en die produktiwiteit van werknemers te verhoog. Gegewe die toenemende belang en aansienlike korporatiewe belegging in KSV-aktiwiteite, is dit noodsaaklik om te verstaan hoe hierdie aktiwiteite die besluite van verskillende belanghebbendes beïnvloed. Vorige navorsers het meestal die invloed van KSV-aktiwiteite op verbruikersbesluitneming ondersoek. Beperkte navorsing is egter gedoen om die effek van KSV aktiwiteite op ander belanghebbendes, insluitend beleggers, te verstaan. Alhoewel tradisionele finansiesteorieë op die aanname dat rasionele beleggers beleggingsbesluite op risiko-opbrengs-oorwegings neem gebaseer is, stel gedragsfinansies voor dat die houding van beleggers teenoor 'n spesifieke onderneming hul besluit om in die onderneming te belê, kan beïnvloed. Die hoofdoel van hierdie studie was om die geïdentifiseerde navorsingsgaping aan te spreek deur die rol wat die persepsie van korporatiewe identiteit en KSV-praktyke in die beleggingsintensie van potensiële individuele beleggers speel te bestudeer deur 'n tweeledige model, wat op grond van verbruikersgedragskonstrukte ontwikkel is, aan te pas. Die eerste deel van die model bestudeer die verband tussen 'n belegger en die geselekteerde maatskappy (Nedbank) ten opsigte van korporatiewe identiteit. Die tweede deel van die model bestudeer beleggers se persepsie van die spesifieke KSV-praktyke van Nedbank. Die model is beoordeel aan die hand van ʼn elektroniese vraelys wat aan alle studente wat gedurende die tweede semester van 2019 by die Universiteit Stellenbosch geregistreer was, versprei is. Vir die studie is 1 649 bruikbare vraelyste ontvang. Die beskrywende statistiek het aangedui dat die respondente 'n positiewe persepsie van Nedbank se korporatiewe identiteit het. Hulle het gevoel dat Nedbank beter presteer in die korporatiewe kundigheid dimensie as die dimensie van korporatiewe waardes. Alhoewel die respondente 'n baie gunstige houding teenoor KSV-inisiatiewe in die algemeen gehad het, het hulle gevoel dat Nedbank swak presteer ten opsigte van sommige van hul KSV-praktyke. Die resultate het aangedui dat die respondente nie regtig vertroud was met Nedbank se KSV-praktyke nie. Die “partial least squares structural equation modelling” analise het aangedui dat diskresionêre en relasionele KSV-praktyke die korporatiewe waardes dimensie van korporatiewe identiteit voorspel, terwyl morele KSV-praktyke beide dimensies van korporatiewe identiteit sterk voorspel het. Die persepsie van korporatiewe waardes en kundigheid het beleggingsintensie sterk voorspel. Alhoewel korporatiewe kundigheid en waardes as bemiddelaars opgetree het tussen alle soorte KSV-praktyke en beleggingsintensie, was die beduidendheid swak. Die invloed van KSV-kennis op beleggingsintensie is nie bemiddel deur korporatiewe waardes of kundigheid nie. Die resultate het aan die lig gebring dat bekendheid met KSV-aktiwiteite ʼn sterk direkte invloed op beleggingsintensie het. Op grond van die resultate beveel die navorser aan dat KSV-programme effektief aan beleggers gekommunikeer en bevorder moet word, aangesien dit 'n beduidende rol in hul beleggingsbesluitneming speel. Verder word ondernemings aangemoedig om hul KSV-reis te begin deur morele KSV-praktyke aan te spreek, aangesien dit die voordeligste is om potensiële beleggers se persepsie van korporatiewe identiteit te bevorder, en sodoende hul beleggingsintensie te bevorder. Maatskappye moet voortdurend op hul KSV-gedrag fokus om potensiële beleggers te lok. | af_ZA |
| dc.description.version | Masters | en_ZA |
| dc.format.extent | xviii, 251 pages ; illustrations, includes annexures | |
| dc.identifier.uri | http://hdl.handle.net/10019.1/109183 | |
| dc.language.iso | en_ZA | en_ZA |
| dc.publisher | Stellenbosch : Stellenbosch University | en_ZA |
| dc.rights.holder | Stellenbosch University | en_ZA |
| dc.subject | Stockholders -- Attitudes -- Psychological aspects | en_ZA |
| dc.subject | Stockholders -- Attitudes -- Effect of perception on | en_ZA |
| dc.subject | Corporate image -- Psychological aspects | en_ZA |
| dc.subject | Corporate social investment | en_ZA |
| dc.subject | Social responsibility of business | en_ZA |
| dc.subject | UCTD | |
| dc.title | Assessing the role that perception of corporate identity and corporate social responsibility practices play in the investment intention of potential individual investors | en_ZA |
| dc.type | Thesis | en_ZA |