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CSR & financial performance: Facing methodological and modeling issues commentary paper to the eponymous FRL article collection

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  • Bruna, Maria Giuseppina
  • Lahouel, Béchir Ben

Abstract

As a commentary paper to the FRL Article Collection on the relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP), the present essay addresses and investigates in depth the heterogeneity of results from existing empirical studies. After an historical excursus on the CSP-CFP link, it emphasizes the need to pay attention to theoretical inaccuracies, endogeneity, sample-selection and aggregation bias as well as to the risk of overinterpretation. Finally, it provides researchers with a documented statement to avoid the theoretical, methodological and technical flaws that have jeopardized antecedent works and shares a range of rationalized, valuable and practicable solutions.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:finlet:v:44:y:2022:i:c:s1544612321001173
    DOI: 10.1016/j.frl.2021.102036
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    References listed on IDEAS

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    Cited by:

    1. Ben Lahouel, Béchir & Ben Zaied, Younes & Taleb, Lotfi & Kočišová, Kristína, 2022. "The assessment of socio-environmental performance change: A Benefit of the Doubt indicator based on Directional Distance Function and Malmquist productivity index," Finance Research Letters, Elsevier, vol. 49(C).
    2. Matuszewska-Pierzynka Agnieszka, 2023. "Sales Revenues and Corporate Sustainability Performance: an Efficiency Analysis of the 20 Top Companies Listed on the Warsaw Stock Exchange," Folia Oeconomica Stetinensia, Sciendo, vol. 23(1), pages 144-169, June.
    3. Gupta, Ranjan Das & Deb, Soumya G., 2023. "Interlinkage between corporate social, environmental performance and financial performance: Firm-mediators in a multi-country context," Finance Research Letters, Elsevier, vol. 52(C).
    4. Tenuta, Paolo & Cambrea, Domenico Rocco, 2022. "Corporate social responsibility and corporate financial performance: The role of executive directors in family firms," Finance Research Letters, Elsevier, vol. 50(C).

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