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Corporate social responsibility and corporate performance: empirical evidence from a panel of the Bucharest Stock Exchange listed companies

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  • Liliana Nicoleta SIMIONESCU

    (The Bucharest University of Economic Studies, Bucharest, Romania)

  • Ștefan Cristian GHERGHINA

    (The Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

This paper aims at empirically investigating the relationship between CSR and corporate performance by using both accounting-based performance measures (e.g. ROA, ROE, and ROS), as well as market-based firm performance measures (e.g. PER, EPS, and PBV), for a sample of companies listed on the BSE during the period 2008-2011. In addition, there were considered several control variables that cover firm’s characteristics including size, indebtedness, as well as the company’s tenure. By employing panel data regression models without cross-section effects, we found a negative relationship between CSR and ROS, as well as a positive association between CSR and EPS. Furthermore, by estimating fixed-effects panel data regression models, the positive relationship between CSR and EPS was reinforced. In addition, we have performed several robustness checks such as the presence of autocorrelation in the residuals, as well as the variance inflation factors towards multicollinearity. The novelty of the current paper consists in the consideration of a multifarious set of performance ratios. This research is important for both managers and investors, since CSR undertakings improve corporate performance.

Suggested Citation

  • Liliana Nicoleta SIMIONESCU & Ștefan Cristian GHERGHINA, 2014. "Corporate social responsibility and corporate performance: empirical evidence from a panel of the Bucharest Stock Exchange listed companies," Management & Marketing, Economic Publishing House, vol. 9(4), Winter.
    • Handle: RePEc:eph:journl:v:9:y:2014:i:4:n:4
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    Cited by:

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    2. Petitjean, Mikael, 2019. "Eco-friendly policies and financial performance: Was the financial crisis a game changer for large US companies?," Energy Economics, Elsevier, vol. 80(C), pages 502-511.
    3. Liliana Nicoleta Simionescu, 2015. "The Gender Differences Effects On Corporate Social Responsibility (Csr)," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 170-175, June.
    4. Liliana Nicoleta Simionescu & Dalina Dumitrescu, 2018. "Empirical Study towards Corporate Social Responsibility Practices and Company Financial Performance. Evidence for Companies Listed on the Bucharest Stock Exchange," Sustainability, MDPI, vol. 10(9), pages 1-23, September.
    5. Madalina Albu, 2022. "Social Responsibility Part Of The Strategy Of The Organizations," Management Strategies Journal, Constantin Brancoveanu University, vol. 56(2), pages 12-18.
    6. Nour Lakiss, 2021. "The impact of social responsibility on financial performance: evidence from Romanian companies," Journal of Financial Studies, Institute of Financial Studies, vol. 10(6), pages 58-76, May.
    7. Souhaila Kammoun & Youssra Ben Romdhane & Sahar Loukil & Abdelmajid Ibenrissoul, 2021. "An examination of linkages between corporate social responsibility and firm performance: Evidence from Moroccan listed firms," Estudios Gerenciales, Universidad Icesi, vol. 37(161), pages 636-646, October.
    8. Coleman Joshua T. & Peasley Michael C., 2015. "Demonstrating a lack of brand/cause effects on point of sale donations," Management & Marketing, Sciendo, vol. 10(3), pages 226-243, October.
    9. Jacob Cherian & Muhammad Umar & Phung Anh Thu & Thao Nguyen-Trang & Muhammad Safdar Sial & Nguyen Vinh Khuong, 2019. "Does Corporate Social Responsibility Affect the Financial Performance of the Manufacturing Sector? Evidence from an Emerging Economy," Sustainability, MDPI, vol. 11(4), pages 1-14, February.
    10. Mariana Vu?ã & Sorin-Iulian Cioacã & Mihai Vuþã & Adrian Enciu, 2019. "An Empirical Analysis of Corporate Social Responsibility Effects on Financial Performance for Romanian Listed Companies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(52), pages 607-607, August.
    11. Bongani Munkuli & Renee Horne, 2018. "Financial Markets Value Reputation for Corporate Social Responsibility (CSR) – A Study of the South African Mining Sector," Africagrowth Agenda, Africagrowth Institute, vol. 15(2), pages 17-22.
    12. Sitara Karim & Norlida Abdul Manab & Rusmawati Binti Ismail, 2019. "Legitimising the Role of Corporate Boards and Corporate Social Responsibility on the Performance of Malaysian Listed Companies," Indian Journal of Corporate Governance, , vol. 12(2), pages 125-141, December.

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