Download This Article Show
Md.Moazzem Hossain  https://doi.org/10.22495/cocv12i3c4p8 Abstract We investigate the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) in a developing country context using annual report data from a sample of 131 firms over a 5 year period (2008-2012). Legitimacy theory and stakeholder theory underpin the study. We find a positive and significant relationship between CSR and CFP when using accounting measures of return on assets and equity, but an insignificant relationship when using the market based Tobin’s Q. The moderating effect of organisational governance on measures of workplace and environmental reporting is found to be important in a less developed economy. Keywords: Corporate Social Responsibility, Corporate Financial Performance, Developing Country, Bangladesh How to cite this paper: Hossain, M., Chowdhury, M. H., Evans, R., & Lema, A. C. (2015). The relationship between corporate social responsibility and corporate financial performance: Evidence from a developing country. Corporate Ownership & Control, 12(3-4), 474-487. https://doi.org/10.22495/cocv12i3c4p8 What is the relationship between corporate social responsibility and financial performance?There is evidence of a positive relationship between CSR and financial performance [12, 14, 15, 16]. A good financial performance results in good social performance as companies that are more profitable have more resources to invest in social activities.
What is the relationship between CSR and business financial success?The study concludes that corporate social responsibility significantly affects the firm's financial performance by developing a positive image among the stakeholders and decreasing overall costs. This study will help management of organizations to realize the importance of corporate social responsibility.
Does corporate governance shape the relationship between corporate social responsibility and financial performance?Furthermore, corporate governance features like foreign ownership, board size and board independence strengthen the positive relationship between CSR and financial performance, but there is no such impact of state ownership.
What is the impact of CSR on financial performance?CSR and the market-based measurements of financial performance are negatively related. This suggests that CSR positively affects a company's profits and negatively affects future stock returns. One interpretation of this result is that socially responsible stocks have a lower required rates of return.
|
What is the relationship between corporate social responsibility and corporate financial performance?
zusammenhängende Posts
Urheberrechte © © 2024 WIKIFI Inc.
