Causality Between Corporate Social Performance and Financial Performance: Evidence from Canadian Firms

Makni, Rim; Francœur, Claude; Bellavance, François

doi:10.1007/s10551-008-0007-7

Cited by 343 publications

(244 citation statements)

References 17 publications

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“…Based on previous studies [21,54,[56][57][58][59][60][61][62][63], this research considers that differences in firm size, financial leverage influences, and industry effects can be variables that affect financial performance.…”

Section: Data Research Designmentioning

confidence: 99%

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Sustainability Matter and Financial Performance of Companies

2017

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Abstract:The relationship between social and environmental performance and financial performance in companies has been a subject widely debated in the literature but the results obtained to date are not conclusive. This research employs the fuzzy-set qualitative comparative analysis (fsQCA) and offers new evidence on the relationship between both types of performance in a sample of companies listed in the Spanish capital market. Financial performance is measured by the return on equity (ROE) ratio, variable that is widely used in Finance and Accounting related research. The corporate performance of the company is measured by its inclusion or not in the sustainability index used as reference for the Spanish capital market, the FTSEGood4 IBEX. The model also incorporates other business variables that might affect the relationships between both types of performance, such as return on assets (ROA) ratio, company size, debt ratio, and industry. The results suggest that, for specific industries, return on assets is a necessary condition for companies with leverage to reduce the cost of debt due to their sustainability profile and consequently boost their ROE.

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Section: Data Research Designmentioning

confidence: 99%

“…In previous literature, while some papers focus their research on one determined industry, such as [20,68], others explore firms belonging to different industries, such as [54,58,59]. This could influence the results obtained because social and environmental impacts are different depending on industry.…”

Section: Industry (Activity Sector)mentioning

confidence: 99%

Sustainability Matter and Financial Performance of Companies

2017

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“…Moreover, highly profitable and leveraged firms feel free to contribution to CSR and increase their reputation. On the other hand, many studies found positive (Ruf, Muralidhar, Brown, Janney, & Paul, 2001;Vitezic, 2011;Waddock & Graves, 1997) or negative (Jaggi & Freedman, 1992;Jones, Van der Laan, Frost, & Loftus, 2008;Makni, Francoeur, & Bellavance, 2009) relation between profitability and CSR level. Based on the discussion above, the fifth, sixth, and seventh hypotheses are given below:…”

Section: Research Purpose and Hypothesesmentioning

confidence: 99%

The Relationship Between Corporate Social Responsibility Reporting and Corporate Governance: Evidence from Turkish Banking Sector

Akdoğan¹,

Gülhan²,

Aktaş³

2017

JMAA

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“…Furthermore, the directional influence of the dimensions of CSR to financial performance of companies was investigated (e.g. Makni et al, 2009). However, the role of the banking sector was rarely investigated (e.g.…”

Section: Review Of the Relevant Studiesmentioning

confidence: 99%

The Role of Corporate Social Responsibility (CSR) in the Egyptian Banking Sector

Kamal

2013

SSRN Journal

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Given the global recognition of Corporate Social Responsibility (CSR) of the financial institutions in developed countries and the lack of interest in the relevance of this concept in Egypt, it is essential to investigate the relation between Corporate Social Responsibility and Financial Performance (i.e. CSR-FP link) in the Egyptian banking sector. This paper explores, empirically, this association. The results imply a negative and statistically significant relationship between CSR-dimensions and banks' profitability. This empirical evidence is consistent with the neoclassical economists' point of view that practicing CSR by an organization is associated with competitive disadvantages.

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Causality Between Corporate Social Performance and Financial Performance: Evidence from Canadian Firms

Abstract: corporate social performance, financial performance, causality, environmental activities,

Cited by 343 publications

References 17 publications

Sustainability Matter and Financial Performance of Companies

Sustainability Matter and Financial Performance of Companies

The Relationship Between Corporate Social Responsibility Reporting and Corporate Governance: Evidence from Turkish Banking Sector

The Role of Corporate Social Responsibility (CSR) in the Egyptian Banking Sector

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