scholarly journals The Link between Corporate Social Performance and Financial Performance: Evidence from Indonesian Companies

2007 ◽  
Vol 1 (1) ◽  
pp. 149 ◽  
Author(s):  
Hasan Fauzi ◽  
Lois S. Mahoney ◽  
Azhar Abdul Rahman
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Resource Theory ◽  
Moderating Variables ◽  
Corporate Social ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship ◽  
Slack Resource

This study examines the relationship of corporate social performance (CSP) to corporate financial performance (CFP) to determine if CSP is related to firm performance.  Additionally, it examines whether firm size or industry affects the relationships between CSR and CSP. This study  advances the literature as it examines this relationship for companies in a developing country, Indonesia, along with examining the impact of moderating variables on this relationship. Two models were developed: the first model was derived using slack resource theory and the second model was developed using the good management theory. Through the examination of 383 firms, the result of the study failed to find a significant relationship between CSP and CFP in either model.  Further analysis, using the slack resource theory, did find that company size had a significant positive moderating effect on the relationship between CSP and CFP.

Labour reputation and financial performance: is there a causal relationship?

2018 ◽  
Vol 40 (1) ◽  
pp. 43-57 ◽  
Author(s):  
María Dolores Odriozola ◽  
Antonio Martin ◽  
Ladislao Luna
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Causality Test ◽  
Content Type ◽  
Generalised Method Of Moments ◽  
Corporate Social ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to analyse if there is a circular relationship of causality between the labour dimension of corporate social performance (CSP) and corporate financial performance (CFP). Design/methodology/approach The sample is formed by the best companies to work for in Spain according to the labour reputation (LR) ranking developed by MERCO from 2006 to 2013. This study overcomes the limitations of previous studies using the panel data methodology (System generalised method of moments) and the Granger causality test. Findings The results suggest that the labour dimension of CSP cause CFP, but there is not causality in the opposite direction. Originality/value Studies about the relationship between dimensions of CSP and CFP demonstrated that there are divergences in the results depending on the dimension analysed. Despite managers and employees are interested in the impact of labour dimension of CSP on CFP, there are few studies about it and they have important limitations.

scholarly journals Desempenho social e financeiro de pequenas e médias empresas: modelo conceitual de causa e efeito

2016 ◽  
Vol 15 (2) ◽  
pp. 60-70
Author(s):  
Jose Elenilson Cruz ◽  
Rafael Barreiros Porto
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Empirical Studies ◽  
The Social ◽  
Research Propositions ◽  
Object Of Study ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Corporate social performance can be understood as a way to measure the efficiency of interactions between companies and their main stakeholders. This evaluation has led to some steps forward in research and management implications. One of its main issues, which is the study of the relationship between social and financial performance, focuses on traditional joint-stock companies. This fact reveals a gap concerning the object of study in the literature of the area. The importance of investigating small and medium companies (SMCs) lies in their social and economic relevance and also in new evidences these studies may provide. After the theoretical discussion, this study presents a conceptual model composed of research propositions to be tested by future empirical studies that wish to answer the following question: in small and medium companies there are relations of cause and effect between social and financial performance? The test of the proposals suggested can reveal, among other results, the categories of social performance of SMCs most affected by a higher financial performance, as established by the premises of theoretical slack-resources; if the impact of these categories on the financial performance is qualified by way of management, confirming assumptions of the theory good management, or if there are no significant differences between the social performance of SMEs with higher financial performance and SMEs with low financial performance, revealing the existence of non-financial factors also influence social performance.

Employees and Corporate Social Performance

2009 ◽  
pp. 327-333
Author(s):  
Punit Arora
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Employment Relations ◽  
Stakeholder Relationships ◽  
Stakeholder Influence ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Over 30 years of research on the relationship between corporate social performance (CSP) and financial performance (FP) has yielded no conclusive results. Researchers have tried to legitimize (or discredit) social performance on the basis of its surmised impact on corporate profitability. However, the empirical evidence on the topic has been as divisive as the theoretical propositioning. By reviewing the theory and evidence on the topic, this article puts forth four intertwined propositions that could be confounding these results: failure to consider the impact of corporate governance, lumping together all sorts of expenditures under the rubric of social performance, failure to consider the stakeholder relationships, and above all, not accounting for the past reputation and stakeholder influence capacity of the firm. In particular, we contend that it is the employment relations that run like a common thread among these factors and hold the key to the dynamics of CSP-FP link.

scholarly journals The Determinants of the Relationship of Corporate Social Performance and Financial Performance: Conceptual Framework

2008 ◽  
Vol 2 (2) ◽  
pp. 233 ◽  
Author(s):  
Hasan Fauzi
Keyword(s):  
Strategic Management ◽  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Business Environment ◽  
Contingency Perspective ◽  
Management Domain ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

The objective of this paper is to investigate relationship between CSP and CFP using contingency perspective derived from the strategic management domain.  The investigation will be done using lens of slack resource and good management theory.  This study is expected to provide a new insight on the link between corporate social performance and corporate financial performance using contingency perspective as suggested in the strategic management and accounting literature, an area has not been examined<br />in the prior studies. The result of this study can resolve the existing conflict<br />in the literatures by developing an integrated model of the link between <br />CSP and CFP and the notion of corporate performance which, in strategic management, is highly affected by four factors: business environment, strategy, organization structure, and control system. The model will explain<br />in what condition the relationship of CSP and CFP is valid.

scholarly journals KAJIAN HASIL PENELITIAN EMPIRIS HUBUNGAN KINERJA KEUANGAN, STRATEGI INOVASI, BIAYA MODAL DAN KINERJA PASAR TERHADAP CORPORATE SOCIAL PERFORMANCE

2013 ◽  
Vol 3 (1) ◽  
Author(s):  
Sri Pujiningsih
Keyword(s):  
Financial Performance ◽  
Cost Of Capital ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Management Theory ◽  
Innovation Strategy ◽  
Good Management ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

<p>This article aims to review empirical research results of corporate social performance (CSP) themes. This article will discuss, firstly, the relationship of financial performance and CSP, the relationships of both are negative, positive and no correlation, based on difference theories. Secondly, the correlation of innovation strategy and CSP are explained by signaling theory. Thirdly, the correlation of cost of capital and CSP can be illuminated by good management theory. Fourth, correlation of market performance and CSP can be explained by signaling and good management theory. The advantages of this article can guide researchers to developed theoretical framework and hypothesis.</p><br />

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.

scholarly journals Impact of Corporate Social Performance on Financial Performance: Case of Firms Listed on the Stock Exchange of Casablanca

2020 ◽  
Vol 2 (1) ◽  
pp. p51
Author(s):  
Lamia Jamel ◽  
Monia Ben Ltaifa ◽  
Ahmed K Elnagar ◽  
Abdelkader Derbali
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Stock Exchange ◽  
Social Performance ◽  
Causal Link ◽  
Return On Equity ◽  
Linear Effect ◽  
Non Linear ◽  
Corporate Social ◽  
The Impact

This paper examines empirically the impact of corporate social performance (CSP) on financial performance (FP). The study relates to a panel of 32 firms listed on the Stock Exchange of Casablanca during the period of study from 2011 to 2017. The empirical findings obtained, by linear regressions on panel data, clearly find the lack of impact of the corporate social performance on the financial performance measured by the Return on Investment (ROI), Return on Equity (ROE) and Earnings Per Share (EPS) ratios. The influence of corporate social performance on financial performance is statistically insignificant. The financial performance of firms classified or not socially efficient are almost identical. Finally, the results obtained clearly show the absence of this causal link between corporate social performance (CSP) on financial performance (FP), which confirms the research hypothesis. Finally, since the relationship between these two performances could be non-linear, we can deepen this article using econometric methods that can analyze the non-linear effect such as quantile regression and the regime-change model.

scholarly journals Does corporate social performance lead to better financial performance? Evidence from Turkey

Green Finance ◽  
2021 ◽  
Vol 3 (4) ◽  
pp. 463-481
Author(s):  
Hakan KURT ◽  
◽  
Xuhui Peng ◽  
Keyword(s):  
Financial Performance ◽  
Corporate Strategy ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Positive Role ◽  
Stakeholder Perspective ◽  
Short And Long Term ◽  
Corporate Social ◽  
The Impact

<abstract> <p>In the past two decades, research on the relationship between corporate social performance (CSP) and corporate financial performance (CFP) has seen considerable growth; however, evidence from Turkey remains scarce, and the results are not uniform. To address this lack, this study investigates the impact of CSP on CFP from the perspective of stakeholder theory. Following the investigation of 47 publicly listed companies from the BIST Corporate Governance Index (XKURY) in the period 2014–2018. The results demonstrate that CSP positively affects CFP in both the short and long term. This study addresses the lack of Turkish experience, and the results indicate that CSP is an intangible resource in corporate strategy that can improve the competitive power of Turkish enterprises. Furthermore, the study emphasizes the positive role of CSP in short-term and long-term CFP in the Turkish context from the stakeholder perspective. The results have implications for Turkish policymakers regarding the rational use of corporate social responsibility (CSR) to promote economic development and insights for Turkish enterprises in terms of gaining stakeholders' trust and improving investors' valuation through the strategic use of CSR to achieve long-term, sustainable development of enterprise competitiveness and finance.</p> </abstract>

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