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 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 A Systematic Literature Review—Social Engagement from Business Perspective

Proceedings ◽  
2018 ◽  
Vol 2 (22) ◽  
pp. 1379
Author(s):  
Jana Švecová
Keyword(s):  
Literature Review ◽  
Financial Performance ◽  
Social Engagement ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Business Perspective ◽  
Enormous Amount ◽  
Corporate Social ◽  
The Relationship

The present paper offers a literature review of relevant empirical research articles dealing with the relationship between corporate social performance (CSP) and corporate financial performance (CFP) published during the last five-year period 2013–2018. The results identify that although there is enormous amount of relevant studies presenting an overall positive relationship, there is still a lack of consensus in published results. Therefore CSP-CFP nexus remains a line of inquiry and more researches are needed. The most obvious explanation are different approaches in measuring corporate social responsibility and financial performance.

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.

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

2019 ◽  
Vol 11 (19) ◽  
pp. 5478 ◽  
Author(s):  
Ali ◽  
Zhang ◽  
Usman ◽  
Khan ◽  
Ikram ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Positive Relationship ◽  
Social Performance ◽  
Primary Objective ◽  
Least Square ◽  
The Government ◽  
Corporate Social ◽  
The Relationship

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.

scholarly journals The Effect of Corporate Visibility on Corporate Social Responsibility

2019 ◽  
Vol 11 (13) ◽  
pp. 3698 ◽  
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.

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 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.

scholarly journals Corporate Social Performance, Financial Performance for Firms that Restate Earnings

2008 ◽  
Vol 2 (1) ◽  
pp. 104 ◽  
Author(s):  
Lois Mahoney ◽  
William LaGore ◽  
Joseph A. Scazzero
Keyword(s):  
Financial Performance ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Block Design ◽  
Financial Statements ◽  
Match Pair ◽  
The People ◽  
Randomized Block Design ◽  
Corporate Social

This study examines corporate social performance (CSP) in firms that restate their financial statements and, using a match pair design, compares their performance to firms that do not restate their financial statements.  Utilizing a randomized block design (two years prior to the<br />restatement and two years after the restatement) for a sample of 44 U.S. firms, we found that CSP Strengths, CSP Weaknesses, CSP People Strengths, and CSP People Weaknesses all increased after restatement <br />though weaknesses increased at a greater rate than strengths. Additionally, using panel data and a match pair design we found, we found<br />that restating firms had a greater increase in CSP Strengths, CSP Weaknesses, CSP Product Strengths, CSP People Strengths and a greater decrease in Total CSP People than non-restating firms after the restatement period. When comparing the relationships between CSP and<br />financial performance (FP), we found that the positive relationship between<br />ROA and CSP Strengths is greater for restatement firms than non-restating firms.  In particular, we find that this positive relationship is a result of the People dimension of CSP, in particular CSP People Strengths.<br /><br />

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