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How does CSR mediate the relationship between culture, religiosity and firm performance?

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  • Hunjra, Ahmed Imran
  • Boubaker, Sabri
  • Arunachalam, Murugesh
  • Mehmood, Asad

Abstract

This paper examines the mediating role of corporate social responsibility (CSR) in the relationship between culture, religiosity and firm performance. It collects data through a questionnaire answered by 189 Pakistani corporate managers. The confirmatory factor analysis (CFA) approach was conducted to validate the instrument and Structural Equation Model (SEM) is used to test a framework comprising seven hypotheses. The results indicate that the effects arising from the association between religiosity, culture and firm performance are enhanced by the mediating impacts of CSR. It provides new insights on CSR literature by incorporating the religious and cultural orientations of corporate managers.

Suggested Citation

  • Hunjra, Ahmed Imran & Boubaker, Sabri & Arunachalam, Murugesh & Mehmood, Asad, 2021. "How does CSR mediate the relationship between culture, religiosity and firm performance?," Finance Research Letters, Elsevier, vol. 39(C).
    • Handle: RePEc:eee:finlet:v:39:y:2021:i:c:s1544612319314552
    DOI: 10.1016/j.frl.2020.101587
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    4. Kilvia Cristina Amaral da Luz & Nayane Thais Krespi Musial, 2023. "Can Organizational Culture Encourage Corporate Social Responsibility and Improve Environmental Performance in [B]³ Companies?," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 13(1), pages 215-215, July.
    5. Du, Weijian & Fan, Yuhuan & Liang, Sunfan & Li, Mengjie, 2023. "The power of belief: Religious traditions and rent-seeking of polluting enterprises in China," Finance Research Letters, Elsevier, vol. 54(C).
    6. Bhaskar, Ratikant & Bansal, Shashank & Abbassi, Wajih & Pandey, Dharen Kumar, 2023. "CEO compensation and CSR: Economic implications and policy recommendations," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 232-256.
    7. elviona, adra, 2020. "Aspek Pengukuran Kinerja Perusahaan," OSF Preprints cj3d8, Center for Open Science.
    8. Bruna, Maria Giuseppina & Lahouel, Béchir Ben, 2022. "CSR & financial performance: Facing methodological and modeling issues commentary paper to the eponymous FRL article collection," Finance Research Letters, Elsevier, vol. 44(C).
    9. Pineau, Edouard & Le, Phuong & Estran, Rémy, 2022. "Importance of ESG factors in sovereign credit ratings," Finance Research Letters, Elsevier, vol. 49(C).
    10. Marius Banke & Stephanie Lenger & Christiane Pott, 2022. "ESG Ratings in the Corporate Reporting of DAX40 Companies in Germany: Effects on Market Participants," Sustainability, MDPI, vol. 14(15), pages 1-21, August.
    11. Fitri, Rohmadina Sabila, 2020. "Firm Performance Measurement," OSF Preprints qsu29, Center for Open Science.
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    13. Samreen Hamid & Asif Saeed & Umar Farooq & Faisal Alnori, 2022. "A Bibliometric Retrospection of CSR from the Lens of Finance and Economics: Towards Sustainable Development," Sustainability, MDPI, vol. 14(24), pages 1-25, December.

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    More about this item

    Keywords

    Corporate social responsibility; Culture; Religiosity; Firm performance;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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