The relationship between corporate social performance and corporate financial performance and the role of innovation: evidence from German listed firms

2013 ◽  
Vol 24 (1) ◽  
pp. 27-52 ◽  
Author(s):  
Thomas M. Fischer ◽  
Angelika A. Sawczyn
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Corporate Financial Performance ◽  
Listed Firms ◽  
Corporate Social ◽  
The Relationship

scholarly journals Stakeholder ratings and corporate financial performance: Socially responsible for what?

2013 ◽  
Vol 10 (4) ◽  
pp. 94-116 ◽  
Author(s):  
Daniela Venanzi
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Stakeholder Management ◽  
Social Performance ◽  
Negative Relationship ◽  
Corporate Financial Performance ◽  
Socially Responsible ◽  
Listed Firms ◽  
Key Stakeholders ◽  
Corporate Social

This paper aims at empirically supporting, in a cross-country and cross-industry analysis, the instrumental role of stakeholder management by adopting a disaggregated approach to the corporate social performance measurement. By using a sample of 250 European industrial listed firms, from 10 European countries, in the period 2001-2003, we find the following evidence: i) the firm is not socially responsible towards all stakeholders, but invests more in key-stakeholders, those who are (perceived as) more influential on its business and have a more valuable impact on its financial performance; ii) a null or weak significance of the relationship between corporate social performance (CSP) and corporate financial performance (CFP) in the whole sample hides highly significant opposite relationships in two separate sub-samples (i.e. firms with positive and negative relationship, respectively): the sign of the CSP-CFP link cannot be expected to be univocal, since the marginal reward-cost equilibrium of social investment is firm-specific.

scholarly journals Relationship between Corporate Social Performance, Corporate Financial Performance and Financial Risk in Indian Firms

2019 ◽  
Vol 8 (3S3) ◽  
pp. 121-128
Keyword(s):  
Financial Performance ◽  
Financial Risk ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Corporate Financial Performance ◽  
Corporate Social ◽  
The Relationship

This study examines the relationship between Corporate Social Performance and Corporate Financial Performance and Financial Risk of BSE top 10 companies in India. The variables of Corporate Social Performance and Financial Performance and Financial Risk were used in this study. There was positive relationship between Corporate Social Performance, Corporate Financial Performance and Financial Risk, at Bajaj Finance Ltd, Reliance Industries Ltd, Bajaj Auto Ltd, State Bank of India, Hindustan Unilever Ltd, Asian Paints Ltd and Bharathi Airtel Ltd. The novelty of the study is that the analysis of this study focuses on CSP, CFP and Financial Risk in respect of Indian firms.

scholarly journals The influence of social disclosure on the relationship between Corporate Financial Performance and Corporate Social Performance*

2018 ◽  
Vol 29 (77) ◽  
pp. 229-245 ◽  
Author(s):  
Editinete André da Rocha Garcia ◽  
José Milton de Sousa-Filho ◽  
João Maurício Gama Boaventura
Keyword(s):  
Financial Performance ◽  
Fixed Effects ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Multiple Linear Regression Model ◽  
Moderating Effect ◽  
Corporate Financial Performance ◽  
Community Stakeholders ◽  
Corporate Social ◽  
The Relationship

ABSTRACT This study’s general objective is to investigate the moderating effect of Corporate Social Performance Disclosure (D-CSP) on the relationship between Corporate Social Performance (CSP) and Corporate Financial Performance (CFP). Based on this objective, the study presented a model in which D-CSP acts as a moderator in relation to primary stakeholders (employees, community, and suppliers). D-CSP is a mechanism through which the various social aspects involved in discretionary policies, actions, and activities identified in the management for stakeholders process can be evaluated. A sample of 1,147 companies belonging to 10 different sectors and five continents was used to test the model. Data were collected from the Bloomberg database, totaling 5,735 observations, from 2010 to 2014. The relationship was tested using the multiple linear regression model involving panel data with fixed effects, and the Newey-West robust standard errors correction. Three constructs, D-CSP, CSP, and CFP, were used to perform the tests. As a CSP measure, the CSP of the employee, supplier, and community stakeholders was used. As a D-CSP measure, the CSP disclosure scores available from the database were used, and return on assets (ROA) was used as a CFP measure. The tests carried out indicated the existence of a positive moderating effect of disclosure on the relationship between the CSP of primary stakeholders and CFP. Besides presenting a positive CSP in relation to the primary stakeholders the results enable it to be inferred that these results need to be disclosed, thus contributing to higher corporate financial performance.

scholarly journals The Corporate Social-Financial Performance Link: Evidence from Pakistan

2016 ◽  
Vol 04 (01) ◽  
pp. 64-75
Author(s):  
Shahzad Butt ◽  
◽  
Safdar Ali Butt
Keyword(s):  
Financial Performance ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Least Square ◽  
Influential Factor ◽  
Listed Firms ◽  
Financial Firms ◽  
Corporate Social ◽  
The Relationship

This empirical investigation has been conducted to constitute a link between corporate social performance and corporate financial performance in Pakistani listed firms. For this purpose the data from seventy listed non-financial firms at KSE from twenty one sectors which are engaged in CSR activities for a period of six years from 2008 to 2013 was employed. The two-stage least square (TSLS) methodology has been used to explore a link between CSP and CFP. The results of study revealed that there is a simultaneous link between social and financial performance. Corporate social performance has been found as positively linked with the previous CFP which supports the slack resources theory. Social performance initiatives taken by the firms have also been found as having a positive relationship with future CFP. Secondly, this study examined the relationship between financial performance and social performance, and the results disclose that there is a positive relationship between CFP and CSP, and the fore most influential factor of corporate social performance was found to be size of the firms and the association between firm size and CSP was found as positive.

scholarly journals Corporate Social Performance and Corporate Financial Performance: A Link for the Indian Firms

2013 ◽  
Vol 7 (1) ◽  
pp. 4 ◽  
Author(s):  
Rupal Tyagi ◽  
Anil K. Sharma
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Negative Relationship ◽  
Least Square Method ◽  
Least Square ◽  
Corporate Financial Performance ◽  
Corporate Social ◽  
First Time ◽  
The Relationship

The present study addresses the issue of the relationship between Corporate Social performance and corporate Financial Performance in Indian context under good management theory. The study used S&P ESG India Index as a proxy of CSP/ CSR (Corporate social performance or Corporate Social Responsibility) of Indian firms for the first time over the 2005–2011 periods. We designed econometric models and controlled industry specific attributes and performed Weighted Least Square method for the analysis. Overall results show neutral though modest negative relationship between the CSP and CFP which eventually informs that if there would be any relationship, it would be negative.

Revisiting the financial performance – corporate social performance link

2018 ◽  
Vol 30 (7) ◽  
pp. 2586-2602 ◽  
Author(s):  
Serin Choi ◽  
Seoki Lee
Keyword(s):  
Financial Performance ◽  
Agency Theory ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose The existing literature has focused heavily on investigating the effect of corporate social performance (CSP) on financial performance (FP) but has not paid sufficient attention to an inverse causation of the relationship. Moreover, while some of the literature argues that FP positively affects CSP, based on the slack resources theory, others have found negative effects of FP on CSP, supporting the managerial opportunism perspective. Thus, this paper aims to address the impact of FP on CSP. Further, this study examines the moderating role of franchising to better understand the relationship. Design/methodology/approach This study uses and expands the models derived from the CSP literature to confirm the effects of FP on CSP with the moderating role of franchising within the restaurant industry. Using two-way fixed effects models, it effectively addresses important problems embedded in the panel data. Findings The findings show a positive effect of FP on CSP, which is inconsistent with Park and Lee’s (2009) findings and supports the slack resources theory. Further, the interesting results show that the impact of FP on CSP diminishes as a firm franchises more, supporting the double-sided moral hazard framework of the agency theory. Originality/value This paper fills the lacuna in both the existing literature on the relationship between CSP and FP and the franchising. This study contributes to enhancing restaurant practitioners’ understanding of the double-sided moral hazard of agency theory unique to franchising context.

Sign in / Sign up

Export Citation Format

Share Document