Examining the Link between CSRD and FP in Korean Companies: The Moderating Effect of Company Reputation

Round 1

Reviewer 1 Report

The main comments follow :

1. The phrase "The mediating variable (company reputation) is also showing a significant role between the variables" in the abstract needs to be more precise. Which are the variable, the authors, refer to?

2. If CSR is a business theory (pg 15) then the authors need to add references on the authors that developed & contributed.

3. Source of the reputation variable and how it is constructed is not mentioned in the manuscript.

4.  The authors mention that the sample has 2500+ obs but table 1 indicated 330. Needs reasoning/explanation.

5. The regression models contain previous observations. The validity of the estimation methodology (OLS), most likely is not adequate, a more robust methodology is needed. Diagnostics tests are used only for multicollinearity. 

6. The authors in the last sentence discuss the reason for the inconsistent findings in other studies, but they do not discuss in the paper the shortcomings of their estimations. 

7. Results are ambiguous and the contribution to the literature questionable. 

 

Author Response

Reply to reviewer's concern in included in pdf file

Author Response File: Author Response.pdf

Reviewer 2 Report

1.                In the background section of the research, it is necessary to add CSRD-related phenomena to companies in Korea. The uniqueness of this research issue must be sharpened, to distinguish it from existing research. Explain the novelty, because topics like this have been raised quite a lot.

2.                The systematics of writing needs to be addressed because there is a lot of overlap between the existing sub-chapters, for example in the financial performance sub-chapter page 3 there is a narrative about the reputation of the company, while the reputation of the company already has its own sub-chapter.

3.                In the development section of the hypothesis for hypothesis 1 there must already be a positive or negative direction of the relationship. In hypothetical 2 there should already be moderation that strengthens or weakens the influence of CSRD on FP.

4.                In the descriptive statistics section for the variables return on assets and return on equity, it is found that the minimum value is negative. Is this allowed, if the company is in a state of negative assets or equity? The standard deviation for control variables (market value, sales and net profit) is very large in value, indicating a high deviation? What are the consequences, if the data has a very high deviation rate?

5.                For the correlation level (table 3, it needs to be corrected, given that there are those that exceed + and – 70%, so there is an indication of multicorrelation.

6.                It is necessary to add discussion and theoretical and practical implications. For conclusions made systematic.

Author Response

Please see the attachment. Responses to reviewer's concern is included in pdf file.

Author Response File: Author Response.pdf

Round 2

Reviewer 1 Report

No additional comments. Well done to the authors in addressing previous comments. 

Reviewer 2 Report

The revision is enough and meet the requirement