The Impact of Corporate Social Responsibility on Financial Performance From a Stakeholder Perspective
Year: 2024
Type: article
Abstract: This study explores the relationship between corporate social responsibility (CSR) and financial performance (FP) from the stakeholder perspective, emphasizing the moderating role of the institutional environment. The aim is to provide empirical evidence on how CSR initiatives can enhance a company's financial outcomes by improving stakeholder relationships and reputation. The study employs a fixed effect panel model using data from Hexun.com CSR Database and Wind Database, covering Chinese A-share listed companies from 2018 to 2022. Variables include CSR indices, return on assets (ROA), marketization levels, and legal environment indices. The analysis reveals a significant positive correlation between CSR and financial performance. Furthermore, we find that the institutional and legal environments moderate this relationship, thereby enhancing the positive effects of CSR on financial outcomes. The findings suggest that companies should integrate CSR into their strategic planning, especially in regions with favorable institutional environments, to achieve better financial performance.
Author: Zhongwu Ma
Institution: Dhurakij Pundit University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4405710248