The Relationship between Corporate Social Responsibility and Firm Performance

2017 ◽  
Author(s):  
Mira Krunic
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Corporate Social ◽  
The Relationship

scholarly journals Financial Flexibility - A Synthesis of Literature Review

2019 ◽  
Vol 9 (1) ◽  
pp. 245
Author(s):  
Rashidul Islam ◽  
Man Wang ◽  
Leo Vashkor Dewri
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Financial Crisis ◽  
Social Responsibility ◽  
Balance Sheet ◽  
Z Score ◽  
Financial Flexibility ◽  
Corporate Social ◽  
The Relationship

Financial flexibility has engrossed considerable interest of researcher over the last three decades. It is considered as most critical element of capital structure decision. The objectives of this research are to synthesize the existing literature on financial flexibility and find the literature gap. First, we show the relationship between theories and financial flexibility from existing literature and discuss the relationship between cash holding, leverage, payout policy and impact on firm performance during and after financial crisis. Second, we discuss how off balance sheet instruments impact on leverage and financial flexibility. We also discuss the relationship between corporate governance, corporate social responsibility and financial flexibility. We evidence from existing literature that financial flexibility has positive relationship on investment and firm performance during and after financial crisis. In addition to that we conclude that the off balance sheet instrument financing is increasing abnormally, and it has effect on debt policy and financial flexibility that yet to be studied verified. We further document from the current literature that corporate social responsibility and corporate governance may also widen financial flexibility in the US market but no significant researcher addressed these issues in the developed markets. While using Altman’s Z-Score for measuring financial flexibility it is unable to accommodate off balance sheet items therefore market demands for adjusted Z-Score.

Corporate social responsibility, firm performance and the moderating effect of earnings management in Chinese firms

2018 ◽  
Vol 10 (2/3) ◽  
pp. 184-199 ◽  
Author(s):  
Muhammad Safdar Sial ◽  
Zheng Chunmei ◽  
Tehmina Khan ◽  
Vinh Khuong Nguyen
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Earnings Management ◽  
Generalized Method Of Moments ◽  
Chinese Firms ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between corporate social responsibility (CSR) and firm performance and the moderating role of earnings management on the relationship between CSR and firm performance. Design/methodology/approach The empirical study used the updated data set (3,481 unbalanced observations for period 2009–2015) from Chinese listed companies on Shenzhen and Shanghai stock exchanges. The generalized method of moments (GMM) statistical approach has been used for the analysis. The authors utilized STATA to test GMM on a sample of Chinese listed firms data over the period 2009–2015. The unbalanced sample obtained 3,481 observations from China stock market and accounting research database and CSR ratings provided by Rankins (RKS). Findings The results demonstrated that CSR has a positive and significant relationship with firm’s performance; also, earnings management has a negatively moderate relationship between CSR and firm performance. These results imply that a high value of earnings management, which results in high level of symbolic CSR, converts to low firm performance of the Chinese firms. CSR actions (only as symbolic measures) promoted by managers as a means to cover their profit management incite an adverse effect on the company’s performance. This study has highlighted the impact of two different corporate social responsibilities: substantive and symbolic (genuine CSR vs greenwashing) on firm performance. Research limitations/implications The results of this investigation will be of distinct interest to company owners who wish to ascertain the effectiveness of the sustainability decisions of directors and managers, and also to investors and public authorities to estimate the positive relationship between CSR and company’s reputation and image, and thus, the positive influence on firm performance. Originality/value Previous studies have generally focused on the relationship between CSR and firm performance. This study provides the impact of earnings management (measurement of both aspects of accrual-based earnings management and real earnings management) on this relationship. Furthermore, this study examines the state of CSR in the Chinese market and provides empirical evidence of this relationship in emerging markets.

Corporate social responsibility and firm performance: does institutional quality matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Majdi Karmani ◽  
Rim Boussaada
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Institutional Quality ◽  
Dynamic Panel Data ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

PurposeThe purpose of this paper is to investigate whether institutional quality influences the corporate social responsibility (CSR) and firm performance (FP) relationship.Design/methodology/approachThis paper uses a large sample of 814 European firms from roughly 2008 to 2017. In order to resolve the problem of endogeneity and heterogeneity the system generalized method of moment is performed.FindingsFirst, the effect of CSR on FP is simultaneously positive and significant for the economic, social and overall score based on an equal-weighted performance of four CSR pillars. Second, we found that the institutional quality matters, as corruption significantly decreases the FP, while government stability law and order exert a positive impact. Third, results suggest, similarly, that FP benefits from the interactional relationship between CSR and institutional quality. Finally, as for firm specifics, we found that the lagged performance and growth rate of sales significantly increase the European FP. However, FP is negatively sensitive to the leverage ratio.Research limitations/implicationsThis study aims to fill the gap in the CSR-FP interrelation and institutional context. Since we have a large number of firms (814) compared to a relatively small temporal dimension (10 years), the dynamic panel data analysis, and more precisely, the SGMM approach, is the most appropriate to resolve the problem of endogeneity and heterogeneity.Practical implicationsThe institutional environment affects the firm's CSR response and results. The strong institutional quality may result in increased regulatory pressures placed on the firm related to social responsibility compliance and can thereby enhance the CSR–FP relationship.Originality/valueTo the best of our knowledge, this is the first study that explored the relationship between CSR–FP and institutional quality in the European context. Indeed, this paper shows that institutional quality mediates the relationship between CSR practices and FP.

scholarly journals Corporate Social Responsibility and Firm Financial Performance: A Case of SME’s Sector in Pakistan.

2020 ◽  
Vol 1 (2) ◽  
pp. 62-74
Author(s):  
Waqas Ahmad WATTO ◽  
Daniel T H MANURUNG ◽  
Komang Adi Kurniawan SAPUTRA ◽  
Syed Gulam MUSTAFA
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Organizational Performance ◽  
Innovation Performance ◽  
Integrative Model ◽  
Data Set ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Relationship

The paper assesses its relationship with firm innovation and Organizational performance in a single integrative model by using spss data set of 53 Pakistani SME’s firms. A questionnaire of self-administrative is developed to collect the data. Researcher personally visits of different SME’s firms and collect the data from manager of SME’s firms. The research use 275 questionnaire is distributed in different SME’s sector. In this study the statistical techniques of data analysis are used to investigate and find out the relationship among the Firm performance and the other factors. SPSS version16 is used for reliability analysis, descriptive statistics, regression analysis, correlation analysis, to check either modal is good fit or not. Our results supports a partial mediation effect of innovation performance on the relationship between corporate social responsibility and firm performance, meanwhile the effect of corporate social responsibility on firm performance shrinks upon the adding of innovation performance to the model. The findings may help to understand how corporate social responsibility is an important driver mechanism for companies to be more inventive, proficient and effective.

scholarly journals BOARD INDEPENDENCE, CORPORATE SOCIAL RESPONSIBILITY AND FIRM PERFORMANCE: EVIDENCE FROM CHINA

2021 ◽  
Vol 17 (No.1) ◽  
pp. 109-130
Author(s):  
Junainah Jaidi ◽  
Miao Wenhao ◽  
Rosle Mohidin
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Business Strategy ◽  
Stock Exchange ◽  
Chinese Government ◽  
Board Independence ◽  
Chinese Firms ◽  
Corporate Social ◽  
The Relationship

The purpose of this paper was to investigate the relationship between board independence and the firm performance of Chinese firms listed in the Shanghai Stock Exchange, under the moderating role of Corporate Social Responsibility (CSR). A total of 860 firm-year observations over a period of ten years, that is from 2010 to 2019 was collected. The panel data regression technique was employed to analyze the data and determine the relationship between board independence and the firm performance of the Chinese firms under investigation. After a robustness check, the empirical results showed that the level of the CSR moderated (reduced) the positive relationship between board independence and firm performance. Therefore, the results seemed to imply that although the CSR has been seen as a useful business strategy, the level of the CSR in China still needed to be improved. In order to improve firm performance through practicing the CSR, the Chinese government and enterprises should be encouraged to continuously improve the level of the CSR.

scholarly journals THE RELATIONSHIP BETWEEN CAPITAL STRUCTURE AND FIRM PERFORMANCE: UNDER THE MODERATING ROLE OF CORPORATE SOCIAL RESPONSIBILITY (CSR)

2020 ◽  
Vol 8 (3) ◽  
pp. 85-95
Author(s):  
Miao Wenhao ◽  
◽  
Junainah Jaidi ◽  
Rosle Mohidin ◽  
◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Capital Structure ◽  
Capital Market ◽  
Business Strategy ◽  
Negative Impact ◽  
Negative Relationship ◽  
Corporate Social ◽  
The Relationship

This paper investigates the moderating effect of Corporate Social Responsibility (CSR) on the relationship between capital structure and firm performance on the Chinese capital market. This paper applied a panel data regression technique using data composition represented by SSE180 index for a period spanning from 2010 until 2019. A total of 86 representative large listed firms was employed in this study for the period of 10 years with a total of 860 firm-year observation. The empirical results showed that debt has a significant negative relationship with firm performance. More importantly, this paper found that the level of CSR moderates the relationship between capital structure and firm performance. The study also found that, the relationship between capital structure and firm performance diminishing when the level of CSR is higher. In China capital market context, the debt ratio is quite high and CSR is a useful business strategy that could diminish the negative impact of capital structure on firm performance. Therefore, firms should comprehensively consider relevant influencing factors, such as CSR, and apply appropriate methods in determining the optimal capital structure in improving their firm performance.

scholarly journals The Mediating Role of Employee Commitment in the Relationship Between Corporate Social Responsibility and Firm Performance in Serbia

SAGE Open ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 215824402110376
Author(s):  
Slobodan Marić ◽  
Nemanja Berber ◽  
Agneš Slavić ◽  
Marko Aleksić
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Direct Effect ◽  
Employee Commitment ◽  
Research Results ◽  
Mediating Role ◽  
Corporate Social ◽  
The Relationship

This study aims to increase the knowledge on relations between corporate social responsibility (CSR), employee commitment, and firm performance in Serbia. The theoretical part of the article analyzes the relations between CSR and firm performances, as well as CSR and employee commitment, based on available world-wide research results. The empirical part of the article presents the research results for large companies in Serbia, regarding the relations between CSR and firm performance, CSR and employee commitment, and the mediating role of employee commitment on the relationship between CSR and firm performances. The sample consists of 53 large companies, each with more than 250 employees. The database was compiled between October 2019 and March 2020 using self-developed questionnaires. PLS-SEM analysis was implemented to uncover the relationship that exists between the variables. The authors determined that there was no direct effect of CSR on firm performances, but positive, statistically significant effects on employee commitment. Although the direct effect is missing, employee commitment has a positive mediation effect on CSR-firm performance link. The concluding part of the article outlines the theoretical and practical implications, acknowledges research limitations, and offers future research directions.

scholarly journals Does Corporate Social Responsibility Mediate the Relation between Boardroom Gender Diversity and Firm Performance of Chinese Listed Companies?

2018 ◽  
Vol 10 (10) ◽  
pp. 3591 ◽  
Author(s):  
Muhammad Sial ◽  
Chunmei Zheng ◽  
Jacob Cherian ◽  
M.A. Gulzar ◽  
Phung Thu ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Performance ◽  
Gender Diversity ◽  
Chief Executive ◽  
Least Square ◽  
Csr Reporting ◽  
Corporate Social ◽  
The Relationship

Although the relationship between board gender diversity and a firm’s financial performance has been investigated before, the current study provides a valuable contribution by exploring the complex phenomenon of the mediating impact of corporate social responsibility (CSR) performance on a firm’s financial performance. The current study aims to explore whether corporate social responsibility (represented by the proxy variable of CSR reporting) mediates the relationship between boardroom gender diversity and firm performance. We use the pooled ordinary least square (OLS) regression to examine the above relationship by using data from 2008 to 2015. To control the likelihood of endogeneity we also use one-year lagged and two-stage least square (2SLS) regression models. Our results show that boardroom gender diversity is significant, positively correlated with firm performance, and CSR fully mediates the relationship between boardroom gender diversity and firm performance. In addition, four control variables (independent director, Chief executive officer (CEO power), board member meeting frequency, Big4, and leverage) have some influence on firm performance. These findings hold for a set of robustness tests. Our findings have the implication for the investors and regulators. For investors, our results show that the existence of female directors on the board can improve the firm performance. For regulators, our results advise the worldwide policy maker to give the importance to boardroom gender diversity. The paper contributes to the existing studies, by pioneering the investigations of the mediating role of CSR in the relation between boardroom gender diversity and firm performance in Chinese context.

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