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Corporate Social Responsability and firm financial performance : the mediating role of political connection

Author

Listed:
  • Hela Garrouch

    (ISG - Institut Supérieur de Gestion de Tunis [Tunis] - Université de Tunis)

  • Badreddine Hamdi

    (UB - Université de Bourgogne)

  • Tarek Mejri

    (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], UEVE - Université d'Évry-Val-d'Essonne)

  • Hicham Sbai

    (UCD - Université Chouaib Doukkali)

Abstract

This paper explores the relationship between Corporate Social Responsibility (CSR), firm performance and the moderating effect of political connection. We hypothesize that politically connected firms and especially those engaged in CSR activities tend to adopt more CSR initiatives that could provide multiple benefits to connected firms, and represents an important determinant of firm performance. Our empirical analysis, based on a sample of French companies listed on the SBF 120 index during the period 2011-2021, shows that CSR reporting enhances corporate financial performance. It has been demonstrated that political connections have a negative influence in controlling the relationship between CSR and firm. Thus, this research provides theoretical and empirical insights into the issue of political connection in relation to CSR. Overall, we conclude that regulators and stakeholders should be aware of the potential effect of engagement in CSR reporting as well as in political connection.

Suggested Citation

  • Hela Garrouch & Badreddine Hamdi & Tarek Mejri & Hicham Sbai, 2023. "Corporate Social Responsability and firm financial performance : the mediating role of political connection," Post-Print hal-04281418, HAL.
    • Handle: RePEc:hal:journl:hal-04281418
    as

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