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Nonlinear impacts of CSR performance on firm risk: New evidence using a panel smooth threshold regression

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  • Rouine, Ibtissem
  • Ammari, Aymen
  • Bruna, Maria Giuseppina

Abstract

As a contribution to the academic debate on the financial, social, and organizational impacts of Corporate Social Commitment (CSC), the present paper investigates the relationship between Corporate Social Responsibility Performance (CSRP), addressed as a proxy and a signal of company's social and environmental effective commitment, and firm's total risk. Accordingly, it endorses a robust theoretical framework, hybridizing the stakeholder and the agency perspectives.

Suggested Citation

  • Rouine, Ibtissem & Ammari, Aymen & Bruna, Maria Giuseppina, 2022. "Nonlinear impacts of CSR performance on firm risk: New evidence using a panel smooth threshold regression," Finance Research Letters, Elsevier, vol. 47(PB).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322000460
    DOI: 10.1016/j.frl.2022.102721
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    References listed on IDEAS

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    Cited by:

    1. Kong, Dongmin & Xiong, Mengxu & Qin, Ni, 2022. "Business Tax reform and CSR engagement: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 82(C).
    2. Wang, Tianyu & Yang, Bo, 2023. "Corporate social responsibility, stakeholders’ governance and idiosyncratic risk," Finance Research Letters, Elsevier, vol. 57(C).
    3. Ehsan Poursoleyman & Gholamreza Mansourfar & Mohammad Kabir Hassan & Saeid Homayoun, 2024. "Did Corporate Social Responsibility Vaccinate Corporations Against COVID-19?," Journal of Business Ethics, Springer, vol. 189(3), pages 525-551, January.
    4. Samuel Buertey & Richard Ramsawak & Raymond K. Dziwornu & Yong‐Seok Lee, 2024. "Corporate social responsibility and dividend payout policy in extraordinary time: Empirical study of South Africa," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 514-527, January.
    5. Veltri, Stefania & Bruni, Maria Elena & Iazzolino, Gianpaolo & Morea, Donato & Baldissarro, Giovanni, 2023. "Do ESG factors improve utilities corporate efficiency and reduce the risk perceived by credit lending institutions? An empirical analysis," Utilities Policy, Elsevier, vol. 81(C).
    6. Uyar, Ali & Kuzey, Cemil & Karaman, Abdullah S., 2022. "ESG performance and CSR awards: Does consistency matter?," Finance Research Letters, Elsevier, vol. 50(C).
    7. Caiazza, Stefano & Galloppo, Giuseppe & La Rosa, Giovanni, 2023. "The mitigation role of corporate sustainability: Evidence from the CDS spread," Finance Research Letters, Elsevier, vol. 52(C).

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    More about this item

    Keywords

    Corporate social responsibility; Firm risk; Panel smooth threshold regression;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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