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Corporate Social and Financial Performance: Empirical Evidence from American Companies
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In this paper, the authors address the issue of the relationship between corporate social and financial performance by moderating company size and financial leverage with the use of type of industry as control variable.Abstract:
The objective of this study is to address the issue of the relationship between
corporate social and financial performance by moderating company size and
financial leverage.with the use of type of industry as control variable. The
Corporate social performance (CSP/CSR) is measured using seven item
developed initially by Michael Jantzi Research Associate, Inc and used by
Mahoney and Robert (2007). To attaint main research objective, the measure
of CSP composite is used. Furthermore, company size, financial leverage,
and type ofindustry are measured by total asset, degree of intermal and
external source to finance the company’s assets, and dummy variable (0 for
non manufacture and 1 for manufacture), respectively. A moderated multiple
regression model is used in the present study. Four models are developed in
the study basedon the theory of slack resiurce and good management. The
result of the present study is that corporate social performance (CSP/CSR)
has no effect on corporate financial performance (CFP) under slack resource
and good management theory it is also shown that only financial leverage
could moderate the interaction between CSP/CSR and financial performance
(CSP). However, based on the overall analysis, it may be reasonable to
come to conclusion that the relationship between CSP and financial
performance is spurious as Orlitzki (2000) concluded.
Key Words: Corporate social performance, corporate social responsibility,
financial performance, good management theory, stakeholder, and slack
resource theory.read more
Citations
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A decade's debate on the nexus between corporate social and corporate financial performance: a critical review of empirical studies 2002–2011
TL;DR: In this article, the authors present a critical review of relevant empirical research articles on the nexus between corporate social performance and corporate financial performance published during the ten-year period from 2002 to 2011.
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Corporate Social Responsibility and Financial Performance: An Empirical Analysis on Greek Companies
TL;DR: In this paper, the authors explore the relationship of CSR and firms' financial performance in Greek firms and find that there is a positive correlation among stock returns and CSR performance.
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Performance Financeira Corporativa e Performance Social Corporativa: desenvolvimento metodológico e contribuição teórica dos estudos empíricos
TL;DR: In this paper, a 15-year period (1996 to 2010) was used to investigate the relationship between Corporate Financial Performance (CFP) and CSP (Corporate Social Performance), and the main results in the theoretical field reinforced the proposed positive relationship between CSP and CFP and good management theory.
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TL;DR: In this article, the influence of CSR communication strategies on e-reputation of communication strategies (i.e., corporate ability and CSR) on social media is investigated.
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TL;DR: In this article, the relationship between corporate social responsibility practice and financial performance of firms listed in the manufacturing, construction and allied sector of the Nairobi Securities Exchange has been investigated and the results indicated the existence of a relationship between the independent variables (corporate social responsibility score, manufacturing efficiency and capital intensity) used in the model and the dependent variable (return on assets).
References
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Journal ArticleDOI
Corporate Social and Financial Performance: A Meta-Analysis
TL;DR: This article conducted a meta-analysis of 52 studies and found that corporate virtue in the form of social responsibility and, to a lesser extent, environmental responsibility is likely to pay off, although the operationalizations of CSP and CFP also moderate the positive association.
Journal ArticleDOI
Corporate Social Responsibility: a Theory of the Firm Perspective
TL;DR: In this article, the authors outline a supply and demand model of corporate social responsibility (CSR) and conclude that there is an "ideal" level of CSR, which managers can determine via cost-benefit analysis.
Journal ArticleDOI
The corporate social performance-financial performance link
Sandra Waddock,Samuel B. Graves +1 more
TL;DR: In this article, the authors report the results of a rigorous study of the empirical linkages between financial and social performance, finding that corporate social performance (CSP) is positively associated with prior financial performance, supporting the theory that slack resource availability and CSP are positively related.
Journal ArticleDOI
Misery Loves Companies: Rethinking Social Initiatives by Business:
TL;DR: The authors argue that companies are increasingly asked to provide innovative solutions to deep-seated problems of human misery, even as economic theory instructs managers to focus on maximizing their shareholders' wealt.
Journal ArticleDOI
Corporate social responsibility and financial performance: correlation or misspecification?
TL;DR: In this paper, the authors demonstrate a particular flaw in existing econometric studies of the relationship between social and financial performance, and find that CSR has a neutral impact on financial performance.