BIROn - Birkbeck Institutional Research Online

    Accounting for the strategic nature of corporate social and financial performance decisions in empirical research

    Boulouta, Ioanna (2011) Accounting for the strategic nature of corporate social and financial performance decisions in empirical research. Academy of Management Proceedings , pp. 1-2. ISSN 0065-0668.

    Full text not available from this repository.

    Abstract

    In the empirical research examining the link between Corporate Social Performance (CSP) and Corporate Financial Performance (CFP), hardly any studies have properly accounted for the strategic nature of social and financial performance decisions. Even more, most research has focused on American firms and has used cross sectional data. Unfortunately, very few studies have empirically examined this link with firms across several countries and with longitudinal data, which greatly enhance causal inference. In this paper we try to fill this gap by initially justifying CSP as a strategic decision and hence as endogenous. Then, we empirically test the impact of CSP on CFP with a panel of 224 firms across several European and American countries, over a period of 6 years. We employ SAM’s ratings for the measurement of CSP and the GMM system estimator to properly account for endogeneity. Our results show that the link between CSP and CFP is neutral. Hence, we argue that CSP is not a causal factor of CFP but should rather be viewed as an indicator of overall ‘quality management’.

    Metadata

    Item Type: Article
    Keyword(s) / Subject(s): corporate social performance, corporate financial performance, endogeneity
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management
    Research Centre: Corporate Governance and Ethics, London Centre for
    Depositing User: Sarah Hall
    Date Deposited: 02 Sep 2014 13:12
    Last Modified: 28 Mar 2017 10:12
    URI: http://eprints.bbk.ac.uk/id/eprint/10461

    Statistics

    Downloads
    Activity Overview
    0Downloads
    78Hits

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item