Study on the Relationship between CSR and Financial Performance
By S. Cho, C. Chung, Jason Young. Sustainability, 2019
407 citations recorded by the source corpus.
This study analyzed whether a systematic relationship exists between corporate social responsibility (CSR) performance and corporate financial performance using 191 sample firms listed on the Korea Exchange. The Korea Economic Justice Institute (KEJI) index of 2015 was used to measure CSR performance; profitability and firm value were used to measure corporate financial performance. Return on assets was used as a proxy for profitability, and Tobin’s Q was used as a proxy for firm value. The correlation between these variables and CSR performance was examined through correlation and regression analysis. The results confirm that CSR performance has a partial positive correlation with profitability and firm value. These results are partly consistent with those of previous studies reporting a positive relationship between CSR and Korean firms’ financial performance using the KEJI index before 2011. In the relationship between CSR performance and profitability, only social contribution yields a statistically positive correlation. Analysis of the correlation between CSR performance and financial performance indicators revealed a positive relationship between the growth rate of total assets and corporate soundness and social contribution. Both soundness and social contribution showed a positive correlation with Tobin’s Q, the measure of corporate value.
Subfields: Management Science and Operations Research, Marketing, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/93c2e50a135c95d8e40be0e05a37567cbd8e2f80
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Marketing
In Strategy and Management
Citations in the corpus
- Corporate Social Responsibility and Financial Performance: The Moderating Role of Ownership Concentration in Turkey (2019, background): “Nowadays, society makes greater demands on companies to act in a socially responsible manner in addition to their traditional role of providing goods and services [1,2].”