The relationship between corporate social responsibility and corporate financial performance: Evidence from a developing country
Citation
Hossain, M. and Chowdhury, M. and Evans, R. and Lema, A. 2015. The relationship between corporate social responsibility and corporate financial performance: Evidence from a developing country. Corporate control and ownership. 12 (3 - Continue 4): pp. 474-487.
Source Title
Corporate control and ownership
ISSN
School
CBS International
Collection
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.
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