scholarly journals CSR and Corporate Financial Performance: An Inter-Sectorial Analysis

2019 ◽  
Vol 14 (11) ◽  
pp. 193 ◽  
Author(s):  
Antonio Salvi ◽  
Emanuele Doronzo ◽  
Anastasia Giakoumelou ◽  
Felice Petruzzella
Keyword(s):  
Financial Performance ◽  
Method Of Moments ◽  
Environmental Governance ◽  
Generalized Method Of Moments ◽  
Geographic Area ◽  
Corporate Financial Performance ◽  
Thomson Reuters ◽  
Sectorial Analysis ◽  
Corporate Social ◽  
The Relationship

This study examines the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP), shedding new light on the lack of academic consensus and prevailing failure to deal with endogeneity in data. To this purpose, the authors recalculate ESG performance starting from the four pillars (economic, environmental, governance and social) provided by Thomson Reuters’ Asset4 database, able to determine a firm’s CSP. We adjust each ESG pillar score accounting for the firm’s sector, size and headquarter geographic area. We empirically test the relationship with a Generalized Method of Moments approach (GMM) in order to tackle the widely disputed endogeneity issues arising in this type of datasets. Results highlight a positive relationship between CSR, as measured in a tailored manner in this study, and corporate financial performance.

scholarly journals Impact of Companies’ Characteristics on the Relationship between Corporate Social Responsibility Disclosure and Corporate financial Performance - An Empirical Analysis

2021 ◽  
Vol 39 (7) ◽  
Author(s):  
Sayeed Zafar Qazi ◽  
Parvesh Kumar Aspal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Empirical Support ◽  
Corporate Financial Performance ◽  
Economic Point ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Strategic managers are persistently accosting with the decision of switching the scared corporate resource for the community welfare to balance the shareholders’ and multiple stakeholders’ interests. Corporate houses are presumed to not only intensify the economic priorities of investors, but must also consider the community and environmental ramifications as well. Presently, corporations are in dilemma over whether investment in corporate social responsibility (CSR) initiatives will be a cost or gain from an economic point of view. For this purpose, the association between CSR disclosure and corporate financial performance has been empirically explored and also the company characteristic has been considered as a significant and interesting factor influencing the association between CSR and corporate financial performance. The prime objective of the present paper is to examine the impact of companies’ characteristics i.e., Age of company on the relationship between corporate social responsibility disclosure and corporate financial performance. Panel data regression statistical technique has been applied to investigate and analyze the relationship. The findings of the study reveal that companies CSR have significant influence on their financial performances.  But, on the other hand the company characteristic, age of the company has no significant impact on the corporate financial performance. The findings are found consistent with earlier studies, which validate the company’s venture in undertaking the CSR initiatives. The present study addresses theoretical as well as empirical support and inspiration for the corporations towards CSR initiatives.

scholarly journals Does a Board Characteristic Moderate the Relationship between CSR Practices and Financial Performance? Evidence from European ESG Firms

2021 ◽  
Vol 14 (8) ◽  
pp. 354
Author(s):  
Matteo Rossi ◽  
Jamel Chouaibi ◽  
Salim Chouaibi ◽  
Wafa Jilani ◽  
Yamina Chouaibi
Keyword(s):  
Financial Performance ◽  
Potential Effect ◽  
Moderating Effect ◽  
Governance Mechanisms ◽  
Board Characteristics ◽  
Thomson Reuters ◽  
Corporate Social ◽  
The Relationship ◽  
Source Of Information

This study aims to examine the potential effect that corporate social responsibility practices (CSR) have on financial performance in ESG firms, using the moderating role of board characteristics. To test the moderating effect of the board characteristics in the relationship between CSR practices and financial performance, we applied linear regressions with panel data using the Thomson Reuters ASSET4 database from European countries in analyzing data of 225 listed companies between 2015 and 2019. The results show that board characteristics partially moderate the relationship between CSR practices and financial performance in European ESG firms. In addition, this study indicates that CSR practices affect the firm’s financial performance positively. The study findings appended a new dimension to governance research that could provide policymakers and regulators with a valuable source of information to strengthen governance mechanisms for better financial performance. Previous studies mostly investigate the direct effect of corporate governance on financial performance. A few studies examine the moderating effect of CSR practice. This paper contributes by investigating the moderating effect of governance mechanisms in the ESG context.

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.

Corporate social responsibility practice and corporate financial performance: evidence from Nigeria companies

2015 ◽  
Vol 11 (4) ◽  
pp. 749-763 ◽  
Author(s):  
Aliyu Baba Usman ◽  
Noor Afza Binti Amran
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Financial Performance ◽  
Financial Data ◽  
Annual Reports ◽  
Corporate Financial Performance ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to describe the nature and trend of corporate social responsibility (CSR) practices in Nigeria. The second objective of this paper is to examine the relationship between the dimensions of CSR disclosures and corporate financial performance (CFP) among Nigerian listed companies. Design/methodology/approach – To carry out this research, content analysis was conducted to extract CSR and financial data from annual reports of 68 companies listed on the Nigeria Stock Exchange. Financial data were cross-referenced with the NSE Factbook. CSR indexes and financial performance measures were computed for estimation of the regression analysis equation. The percentages were used to describe the nature and trend of CSR practice in Nigeria. This was followed by the hierarchical multiple regression analysis to examine the relationship between CSR and CFP. Findings – The results of the descriptive statistics show that the listed companies used CSR initiatives to communicate social performance to their stakeholders. From the regression analysis, community involvement disclosure, products and customer disclosures and human resource disclosures were found to enhance CFP. The results also reveal a negative relationship between environmental disclosure and CFP, which indicates that disclosure of environmental impact information could be value destroying in Nigeria. Research limitations/implications – The major limitation of this paper is the sample size. Also, failure of corporations to disclose CSR in the annual reports will have a material effect on these findings. Practical implications – The findings of this paper have practical implications on the management of Nigerian companies to re-think and re-strategize their CSR policies that incorporate social and economic performance to improve their CFP. Social implications – This paper has implication on stakeholders in validating the corporate citizenship of corporations based on the level of commitment and participation in CSR initiatives. Also, findings of this paper will alert the enforcement agencies on the status of CSR practices in Nigeria. Government in collaboration with private and public agencies should consider the needs for CSR framework and database to guide social and environmental reporting in the country. Originality/value – The paper has examined the relationship between CSR and CFP based on CSR dimensional approach. Aspect of human resource and products/customers CSR has been neglected in the context of Nigerian CSR research. This paper makes valuable contribution by offering new and fresh insight on these dimensions.

scholarly journals Analisis Pengaruh Corporate Governance, Corporate Social Responsibility, dan Corporate Financial Performance terhadap Perusahaan Indeks Kompas100 (The Influence Analysis of Corporate Governance, Corporate Social Responsibility, and Corporate Financial Performance to Companies in Kompas100 Index)

2015 ◽  
Vol 5 (1) ◽  
pp. 74-85
Author(s):  
Annisa Putri Caesari ◽  
Abdul Kohar Irwanto ◽  
Muhammad Syamsun
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Corporate Financial Performance ◽  
Operational Activities ◽  
Corporate Social ◽  
The Relationship

The main objective of a company in running its operational activities is to maximize profit. Apart from that, the company is also obliged to provide maximum contribution to the community. To accommodate the objectives and obligations, the company may apply a system called Corporate Governance (CG). The company can also implement Corporate Social Responsibility (CSR) as its significant step in contributing to the community. The implementation of CG and CSR is related because CSR is a consequence of CG implementation. In addition to CG and CSR are interconnected, CG and CSR are also interconnected with Corporate Financial Performance (CFP). Through the implementation of CG, the company can improve CFP. The relationship between CSR and CFP can be associated positively or negatively. The research was conducted on 100 companies listed in Kompas100 index to determine the influence of CG to CSR, influence of CG to CFP, influence CSR to CFP, and influence of CG to the CFP with CSR as a moderating variable. Structural equation modeling (SEM) analysis was used to determine the relationship of these three variables. The results showed that CG influenced positively to CSR, but influenced negatively to CFP. Likewise, CSR influenced negatively to CFP. Due to the negative influence of CG to CFP and CSR to CFP, CG also influenced negatively to the CFP through the disclosure of CSR as moderating variable.Keyword: corporate governance, corporate social responsibility, corporate financial performance, Indeks Kompas100

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