The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries
Sustainability
; 15(11):8901, 2023.
Artigo
em Inglês
| ProQuest Central | ID: covidwho-20236641
ABSTRACT
This study aims to investigate the nature and intensity of the changes in corporate financial performance due to the corporate social responsibility (CSR) disclosures as a result of certain relationships between corporate governance and company performance in the non-financial sector. This study selected 625 non-financial companies across six organizations for economic cooperations (OECD) countries' stock markets for the period of 10 years (2012–2021). For this qualitative study, corporate governance, financial performance, and corporate social responsibility score data were collected from the DataStream, a reliable database for examining the research on OECD countries' listed companies. For the data analysis we applied various statistical tools such as regression analysis and moderation analysis. The findings of the study show that all attributes of the corporate governance mechanism, except for audit board attendance, have significant positive impacts on financial performance indicators for all the selected OECD economies except the country France. France's code of corporate governance has a significant negative impact on return on asset (ROA) and return on equity (ROE) due to differences in cultural and operational norms of the country. The audit board attendance has no significant impact on ROA. Moreover, all the attributes except board size (BSIZ) have significant positive impacts on the earnings per share (EPS) in Spain, The United Kingdom (UK) and Belgium. The values obtained from the moderation effect show that Corporate social responsibility is the key factor in motivating corporate governance practices which eventually improves corporate financial performance. However, this study advocated the implications, Investors and stakeholders should consider both corporate governance and CSR disclosures when making investment decisions. Companies that prioritize both governance and CSR tend to have better financial performance and are more likely to mitigate risks. Moreover, the policy makers can improve the code of corporate governance in order to attain sustainable development in the stock market.
Environmental Studies; corporate governance; financial performance; corporate social responsibility; OECD economies; Return on assets; Audit committees; Disclosure; Investments; Earnings per share; Regression analysis; Data transmission; Norms; Reputation management; Qualitative research; Research & development--R&D; Corporate profits; Statistical analysis; COVID-19; Value creation; Stock exchanges; Social responsibility; Data analysis; Qualitative analysis; Brand loyalty; Stockholders; Pandemics; Decision making; Medical research; Sustainable development; Stakeholders; Risk reduction; France
Texto completo:
Disponível
Coleções:
Bases de dados de organismos internacionais
Base de dados:
ProQuest Central
Tipo de estudo:
Estudo experimental
/
Estudo prognóstico
/
Pesquisa qualitativa
Idioma:
Inglês
Revista:
Sustainability
Ano de publicação:
2023
Tipo de documento:
Artigo
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