Corporate social responsibility and financial performance: a case study based in Taiwan

This study investigates whether the impact of a firm's CFP differs depending on the level of CSR performance and the amount of annual operating expenditure. The 'Excellence in Corporate Social Responsibility TOP 50' award results serve as the CSR performance indicator, and corporate a...

Full description

Saved in:
Bibliographic Details
Published inApplied economics Vol. 53; no. 23; pp. 2661 - 2670
Main Authors Lee, Yung-Heng, Yang, Lori Tzu-Yi
Format Journal Article
LanguageEnglish
Published London Routledge 15.05.2021
Taylor & Francis Ltd
Subjects
corporate financial performance
Corporate social responsibility
Economic analysis
Economic theory
Financial performance
nonlinear
Profitability
PSTR MODEL
Social responsibility
Taiwan
Online AccessGet full text

Cover

More Information
Summary:This study investigates whether the impact of a firm's CFP differs depending on the level of CSR performance and the amount of annual operating expenditure. The 'Excellence in Corporate Social Responsibility TOP 50' award results serve as the CSR performance indicator, and corporate annual financial performance data from 2013 to 2017 serve as empirical data. This study uses the panel smooth transition regression model. The findings reveal that the relationship between a firm's operating expenditures and its profitability is non-linear, and with certain threshold values of CSR scores, operating spend has a more significant and negative effect on profitability. Firms that implemented more CSR measures experienced greater negative effects on profitability.
ISSN:0003-6846
1466-4283
DOI:10.1080/00036846.2020.1866158