Sub-National Institutional Contingencies and Corporate Social Responsibility Performance: Evidence from China

This study investigates the relationship between sub-national institutional contingencies and corporate social responsibility performance (CSRP). Sub-national institutional contingencies (SNICs) play a moderating role in the link between CSRP and corporate financial performance (CFP). Using data from all A-share Chinese companies listed on the Shenzhen and Shanghai exchanges for the period 2010 to 2015, ordinary least square (OLS) regression was used as a baseline methodology to draw inferences from the data. The study uses propensity score matching (PSM) to confirm the robustness and to tackle the possible issue of endogeneity. We find reliable evidence that SNICs have a positive and significant effect on CSRP. This positive relationship is more pronounced in cross-listed companies as compared to state-owned enterprises (SOEs) and in companies located in the more developed region. Moreover, SNICs moderate the positive relationship between CSRP and CFP. The relationship is stronger in firms that are non-SOEs, are non-cross-listed, and are from less-developed regions as compared to their counterparts. The findings provide implications for regulators and individual companies. Investment in corporate social responsibility (CSR) helps companies to achieve their primary objective (i.e., financial performance). With respect to practical implications, the study indicates that policymakers, executives, and managers should refrain from “one size fits all” CSR policies. Instead, they need to simultaneously evaluate the effects of regional development, cross-listing, and ownership characteristics. Considering weak social performance by firms that are from less developed regions, are non-cross-listed, and that are non-SOEs, policymakers and the government should improve information transparency and the regulatory framework, and provide these firms with incentives. This study also provides insights for other emerging economies, especially those going through extraordinary government interventions.

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The Effect of Corporate Visibility on Corporate Social Responsibility

Sustainability ◽

10.3390/su11133698 ◽

2019 ◽

Vol 11 (13) ◽

pp. 3698 ◽

Cited By ~ 10

Author(s):

Frank Li ◽

Taylor Morris ◽

Brian Young

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Firm Size ◽

Positive Relationship ◽

Corporate Social Performance ◽

Social Performance ◽

Mediating Effect ◽

The Public ◽

Corporate Social ◽

The Relationship

Outside of direct ownership, the general public may feel it is an implicit stakeholder of a firm. As the public becomes more vested in a firm’s actions, the firm may be more likely to engage in Corporate Social Responsibility (CSR) activities. We proxy for the public’s stake in a firm with public visibility. Based on 3400 unique newspaper publications from 1994–2008, we measure visibility for the S&P 500 firms with the frequency of print articles per year concerning the firm. We find that visibility has a signficant, positive relationship with the CSR rating. Evidence also suggests this relationship may be causal and working in one direction, from visibility to CSR. While the existing literature provides other factors that influence CSR, visibility proves to have the most significant impact when tested alongside those other factors. Visibility also has a mediating effect on the relationship between CSR rating and firm size. CSR rating and firm size relate negatively for the lowest visibility firms and positively for the highest. This paper provides strong evidence that visibility is an important factor to consider for studies on corporate social performance.

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Corporate Social Responsibility and Banks’ Financial Performance

International Business Research ◽

10.5539/ibr.v11n10p42 ◽

2018 ◽

Vol 11 (10) ◽

pp. 42 ◽

Cited By ~ 2

Author(s):

Francesco Gangi ◽

Mario Mustilli ◽

Nicola Varrone ◽

Lucia Michela Daniele

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Social Performance ◽

The Social ◽

Stakeholder Perspective ◽

European Banking ◽

Corporate Social ◽

The Relationship ◽

Csr Engagement

This study analyzes whether and how corporate social responsibility (CSR) affects the financial performance of the European banking industry. According to agency theory, CSR engagement should be negatively related to financial performance. By contrast, from the stakeholder perspective and according to the resource-based view, CSR should positively impact banks’ financial performance. Over a period of six years (2009-2015) following the explosion of the sub-prime crisis, the econometric estimates of the current study confirm a positive effect of CSR engagement on banks’ financial performance. Net interest income and profitability increase with the increase in social performance. At the same time, CSR is negatively related to non-performing loans. Therefore, in contrast to the trade-off model, our results support a win-win vision of the relationship between the social and financial performance of banks.

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A Quantitative Analysis for the Correlation Between Corporate Financial and Social Performance

International Journal of Recent Contributions from Engineering Science & IT (iJES) ◽

10.3991/ijes.v4i4.6551 ◽

2016 ◽

Vol 4 (4) ◽

pp. 55

Author(s):

Wafaa Salah ◽

Mostafa Abdelhady Salama

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Corporate Social Performance ◽

Social Performance ◽

Three Dimensions ◽

Operating Income ◽

Corporate Social Responsibility Report ◽

Corporate Social ◽

The Relationship

Recently, the corporate social performance (CSP) is not less important than the corporate financial performance (CFP). Debate still exists about the nature of the relationship between the CSP and CFP, whether it is a positive, negative or a neutral correlation. The objective of this study is to explore the relationship between corporate social responsibility (CSR) reports and CFP. The study uses the accounting-based and market-based quantitative measures to quantify the financial performance of seven organizations listed on the Egyptian Stock Exchange in 2007-2014. Then uses the information retrieval technologies to quantify the contribution of each of the three dimensions of the corporate social responsibility report (environmental, social and economic). Finally, the correlation between these two sets of variables is viewed together in a model to detect the correlations between them. This model is applied on seven firms that generate social responsibility reports. The results show a positive correlation between the Earnings per share (market-based measure) and the economical dimension in the CSR report. On the other hand, total assets and property, plant and equipment (accounting-based measure) are positively correlated to the environmental and social dimensions of the CSR reports. While there is not any significant relationship between ROA, ROE, Operating income and corporate social responsibility. This study contributes to the literature by providing more clarification of the relationship between CFP and the isolated CSR activities in a developing country.

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Does Corporate Social Responsibility Shape the Relationship between Corporate Governance and Financial Performance?

Indonesian Journal of Sustainability Accounting and Management ◽

10.28992/ijsam.v1i1.33 ◽

2017 ◽

Vol 1 (2) ◽

pp. 59 ◽

Cited By ~ 1

Author(s):

Jaja Suteja ◽

Ardi Gunardi ◽

Rani Janisa Auristi

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Positive Relationship ◽

Stock Exchange ◽

Audit Committees ◽

Corporate Financial Performance ◽

Corporate Social ◽

The Relationship

The correlation between theoretical and empirical of corporate governance (CG) and corporate financial performance (CFP) is not there without controversy. This paper aims to determine the moderating effects of corporate social responsibility (CSR), on the relationship between corporate governance and corporate financial performance. The sample of this research are banking companies that are listed on Indonesia Stock Exchange between the period of 2010-2014, taken by using purposive sampling method. Moderated Regression Analysis (MRA) analysis was used in this study. The results of this study indicate that corporate governance affects the company's financial performance positively. Aspects of corporate governance such as audit committees and number of board meetings have a positive relationship with financial performance, but there is no relationship from the aspect of independent board of commissioners. Furthermore, CSR can only strengthen the positive relationship between the number of board of commissioners’ meetings and the financial performance of the company. The frequency intensity of board of commissioners’ meetings can increasingly address corporate governance reforms by improving and realizing social responsibility as part of sustainability innovation by optimizing media and CSR reporting methods.

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PENGARUH ORIENTASI CORPORATE SOCIAL RESPONSIBILITY (CSR) TERHADAP KINERJA SOSIAL PERUSAHAAN DENGAN KETIDAKPASTIAN LINGKUNGAN SEBAGAI VARIABEL PEMODERASI

Jurnal Akuntansi Indonesia ◽

10.30659/jai.2.1.37-50 ◽

2016 ◽

Vol 2 (1) ◽

pp. 37

Author(s):

Puji Harto

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Positive Relationship ◽

Corporate Social Performance ◽

Social Performance ◽

Environmental Uncertainty ◽

Ethical Orientation ◽

Corporate Social ◽

Relationship Of ◽

The Relationship

The objective of this research is to investigates the relationship of company’s orientation toward social responsibility at small and medium enterprises to their social corporate performance. In addition, this research also examines the role of environmental uncertainty as the moderating variable in affecting the relationship of corporate social responsibility orientation and corporate social performance. Sample was taken from small and medium businesess in Jawa Tengah. Initial distribution of 300 set of questionnaires to SME respondents has resulted in final sample of 115 respondents that usable to the analysis stage. The results of this study show that company’s ethical orientation has positive relationship with corporate social performance, while company’s legal orientation has negative effect toward corporate social performance. Moreover, the presence of environmental uncertainty has resulted in two significant interactions with the two components of company’s orientation. The interaction of environmental uncertainty and company’s ethical orientation has negative relationship with corporate social performance. Similarly, the interaction of environmental uncertainty and company’s legal orientation has positive relationship with corporate social performance.

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Corporate social responsibility and financial performance: Evidence from the financial sector.

Corporate Ownership and Control ◽

10.22495/cocv8i2p3 ◽

2011 ◽

Vol 8 (2) ◽

pp. 27-36 ◽

Cited By ~ 6

Author(s):

Maria-Gaia Soana

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Corporate Social Performance ◽

Social Performance ◽

Financial Sector ◽

Financial Loss ◽

Book Value ◽

Corporate Social ◽

The Relationship

Does corporate social responsibility (CSR) entail economic and financial loss or does it guarantee competitive advantage? To answer this question, many studies have aimed to establish, largely in samples from multiple industries, the relationship between corporate social performance (CSP) and corporate financial performance (CFP). These studies have produced conflicting results and any attempt to give a generalised and coherent conclusion has proved inadequate. This paper investigates the possible connection between CSP (measured by ethical rating) and CFP (measured by price-to-book-value) in a sample of international financial intermediaries. Although most previous contributions seem to confirm the hypothesis of the existence of a positive relationship between the two variables, the paper finds no clear evidence of a significant relationship between CSP and CFP in the financial sector.

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The Corporate Social-Financial Performance Link: Evidence from Pakistan

Jinnah Business Review ◽

10.53369/pvga1050 ◽

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.

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

Sustainability ◽

10.3390/su10103591 ◽

2018 ◽

Vol 10 (10) ◽

pp. 3591 ◽

Cited By ~ 15

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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Corporate Social Performance and Firms' Financial Performance: An Alternative Perspective

Psychological Reports ◽

10.2466/pr0.1994.75.3.1091 ◽

1994 ◽

Vol 75 (3) ◽

pp. 1091-1103 ◽

Cited By ~ 15

Author(s):

Roy L. Simerly

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Corporate Social Performance ◽

Social Performance ◽

Performance Measure ◽

Alternative Perspective ◽

Corporate Social ◽

The Relationship ◽

Measures Of Performance

Prior studies of the relationship between corporate social responsibility and firms' financial results have produced inconsistent results. This study reexamined the relationship using multiple measures of 110 firms' financial performance. The traditional measures of performance provide inconsistent results across different economic environmental contexts. An alternative performance measure based on stakeholders' response was tested. The results of testing this measure were consistent across the two contexts.

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Corporate Social Responsibility and Financial Performance among Energy Sector Companies

Energies ◽

10.3390/en14196068 ◽

2021 ◽

Vol 14 (19) ◽

pp. 6068

Author(s):

Magdalena Kludacz-Alessandri ◽

Małgorzata Cygańska

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Corporate Social Performance ◽

Social Performance ◽

Energy Sector ◽

Investment Policies ◽

Csr Strategy ◽

Corporate Social ◽

The Relationship

Corporate social responsibility (CSR) is one of the main drivers of corporate reputation. Many studies show that CSR can positively affect financial performance (FP) and vice versa. However, the relationship between FP and CSR depends on the type of industry in which the company operates, and there is little research regarding the energy sector in this area. The basis of empirical research in this study is slack resource theory which argues that financial performance is the cause of corporate social performance. This paper aims to analyze if financial performance affects corporate social responsibility adoption in energy sector companies. In order to achieve this goal, the study specifically examines the relationship between selected financial performance indicators and CSR adoption. Analyzing an international sample of 219 companies from thirty-two countries for 2020, we observed the statistically significant relations between financial performance and the implementing of the CSR strategy of the energy industry companies. The Return on Assets measure (ROA) and the Earnings Before Interest and Taxes measure (EBIT) were significantly higher among companies implementing the CSR strategy. The Enterprise Value to earnings before interest, taxes, depreciation, and amortization ratio (EV EBITDA) was lower among companies that adopted CSR. We did not confirm that the Return on Equity measure (ROE), Beta coefficient, and EBITDA per Share correlated with CSR adoption. Our research had implications for firms’ investment policies in social initiatives and highlighted the relation between the financial performance and CSR initiatives of the energy sector companies.

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