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The Effect of Corporate Social Performance on Financial Performance: The Moderating Effect of Ownership Concentration

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  • Chih-Wei Peng
  • Mei-Ling Yang

Abstract

The purpose of this study is to extend prior research on this topic by investigating whether the impact of ownership concentration moderates the link between corporate social performance (CSP) and financial performance (FP). This study uses a set of unique, hand-collected pollution control data to measure CSP, based on a sample of Taiwanese listed companies during the period from 1996 to 2006. The results of the empirical analysis provide firm support for the idea that the divergence between control rights and the cash flow rights of controlling owners negatively moderates the link between social and short- and long-run FP. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Chih-Wei Peng & Mei-Ling Yang, 2014. "The Effect of Corporate Social Performance on Financial Performance: The Moderating Effect of Ownership Concentration," Journal of Business Ethics, Springer, vol. 123(1), pages 171-182, August.
    • Handle: RePEc:kap:jbuset:v:123:y:2014:i:1:p:171-182
    DOI: 10.1007/s10551-013-1809-9
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