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Corporate life cycle, organizational financial resources and corporate social responsibility

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  • Hasan, Mostafa Monzur
  • Habib, Ahsan

Abstract

This study examines the association between the corporate life cycle and corporate social responsibility (CSR). Motivated by the resource-based theory, we hypothesize and find supportive evidence that the resource base and competitive advantages allow mature firms to invest more in CSR-related activities than firms at other stages of the corporate life cycle. We further examine the role of financial resources in explaining the relation between the corporate life cycle and CSR. Our results show that size, profitability and slack resources moderate the association between the corporate life cycle and CSR. These findings are robust when subjected to a series of sensitivity tests.

Suggested Citation

  • Hasan, Mostafa Monzur & Habib, Ahsan, 2017. "Corporate life cycle, organizational financial resources and corporate social responsibility," Journal of Contemporary Accounting and Economics, Elsevier, vol. 13(1), pages 20-36.
    • Handle: RePEc:eee:jocaae:v:13:y:2017:i:1:p:20-36
    DOI: 10.1016/j.jcae.2017.01.002
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    More about this item

    Keywords

    Corporate life cycle; Corporate social responsibility; Financial resources;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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