IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v12y2023i4p217-228.html

Does corporate social responsibility provide protection against systemic risks? Evidence from Taiwan during the US-China trade war

Author

Listed:
  • Po-Jung Chen

    (I-Shou University)

  • Chih-Yu Yang

    (I-Shou University)

Abstract

This paper examines the protection against systemic risks of the financial and stock performance of firms in receipt of ‘corporate social responsibility’ (CSR) awards. The data we obtained from the Taiwan Economic Journal (TEJ) in 2016-2018, comprised of CSR-award-recipient firms (CSR firms) voted for by the Common Wealth and Global Views magazines, for a sample period running from the third quarter of 2017 to the third quarter of 2018. Our empirical results reveal that in terms of their financial performance, as compared to non-CSR-award-recipient (non-CSR) firms, CSR firms failed to demonstrate any better protection against systemic risks (such as the US-China trade war). However, the stock performance of CSR firms clearly provided better protection than that of non-CSR firms; the reason for this observation is assumed to be the higher operational costs faced by CSR firms seeking to continue to pursue their CSR goals when encountering systemic risks. Nevertheless, participation in CSR is found to have an insurance-like effect on firm value, which clearly helps to increase the confidence of investors and reduce stock volatility Key Words:Corporate Social Responsibility, Stock Performance, Financial Performance

Suggested Citation

  • Po-Jung Chen & Chih-Yu Yang, 2023. "Does corporate social responsibility provide protection against systemic risks? Evidence from Taiwan during the US-China trade war," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 12(4), pages 217-228, June.
    • Handle: RePEc:rbs:ijbrss:v:12:y:2023:i:4:p:217-228
    DOI: 10.20525/ijrbs.v12i4.2552
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/2552/1846
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v12i4.2552
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v12i4.2552?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jong-Seo Choi & Young-Min Kwak & Chongwoo Choe, 2010. "Corporate social responsibility and corporate financial performance: Evidence from Korea," Australian Journal of Management, Australian School of Business, vol. 35(3), pages 291-311, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jonah Tyan & Shih-Ching Liu & Carol Yeh-Yun Lin & Tien-Yu Chang, 2025. "Unlocking the Connection between Corporate Social Responsibility Strategy and Firm Performance: Unveiling Mediating and Moderating Effects," Journal of Business Ethics, Springer, vol. 197(3), pages 597-611, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexandra ZBUCHEA & Florina PÎNZARU, 2017. "Tailoring CSR Strategy to Company Size?," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(3), pages 415-437, September.
    2. Rubio-Andrés, Mercedes & Ramos-González, Mª del Mar & Sastre-Castillo, Miguel Ángel & Gutiérrez-Broncano, Santiago, 2023. "Stakeholder pressure and innovation capacity of SMEs in the COVID-19 pandemic: Mediating and multigroup analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    3. Bose, Sudipta & Saha, Amitav & Khan, Habib Zaman & Islam, Shajul, 2017. "Non-financial disclosure and market-based firm performance: The initiation of financial inclusion," Journal of Contemporary Accounting and Economics, Elsevier, vol. 13(3), pages 263-281.
    4. Devora Peña‐Martel & Jerónimo Pérez‐Alemán & Domingo J. Santana‐Martín, 2022. "Media visibility and board gender diversity," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 31(1), pages 192-208, January.
    5. Tanveer Bagh & Muhammad Asif Khan & Tahir Azad & Shamila Saddique & Muhammad Atif Khan, 2017. "The Corporate Social Responsibility and Firms' Financial Performance: Evidence from Financial Sector of Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 301-308.
    6. Shan Xu & Duchi Liu & Jianbai Huang, 2015. "Corporate social responsibility, the cost of equity capital and ownership structure: An analysis of Chinese listed firms," Australian Journal of Management, Australian School of Business, vol. 40(2), pages 245-276, May.
    7. Santi Gopal Maji, 2022. "Disclosure Pattern of Labour Practices and Decent Work and Its Impact on Corporate Financial Performance: Evidence from Asia," Global Business Review, International Management Institute, vol. 23(4), pages 1054-1070, August.
    8. Bum-Jin Park, 2021. "Corporate Social and Financial Performance: The Role of Firm Life Cycle in Business Groups," Sustainability, MDPI, vol. 13(13), pages 1-16, July.
    9. Zaheer Alam & Yasir Bin Tariq, 2023. "Corporate Sustainability Performance Evaluation and Firm Financial Performance: Evidence from Pakistan," SAGE Open, , vol. 13(3), pages 21582440231, July.
    10. Hajer Tebini & Bouchra M’Zali & Pascal Lang & Paz Méndez-Rodrı́guez, 2015. "Social Performance and Financial Performance: A Controversial Relationship," International Series in Operations Research & Management Science, in: Enrique Ballestero & Blanca Pérez-Gladish & Ana Garcia-Bernabeu (ed.), Socially Responsible Investment, edition 127, chapter 0, pages 53-73, Springer.
    11. María del Mar Miras‐Rodríguez & Amalia Carrasco‐Gallego & Bernabé Escobar‐Pérez, 2015. "Are Socially Responsible Behaviors Paid Off Equally? A Cross‐cultural Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(4), pages 237-256, July.
    12. Zhang, Yuting & Chin, Tachia & Al-Wazer, Ragwa, 2025. "Good neighbors but bad employers? How corporate digital transformation affects incongruence between external and internal corporate social responsibility," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    13. Jajja, Muhammad Shakeel Sadiq & Asif, Muhammad & Montabon, Frank & Chatha, Kamran Ali, 2020. "The indirect effect of social responsibility standards on organizational performance in apparel supply chains: A developing country perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 139(C).
    14. Muhammad Safdar Sial & Chunmei Zheng & Nguyen Vinh Khuong & Tehmina Khan & Muhammad Usman, 2018. "Does Firm Performance Influence Corporate Social Responsibility Reporting of Chinese Listed Companies?," Sustainability, MDPI, vol. 10(7), pages 1-12, June.
    15. Sanoran, Kanyarat (Lek), 2023. "Corporate sustainability and sustainable growth: The role of industry sensitivity," Finance Research Letters, Elsevier, vol. 53(C).
    16. Jan Diebecker & Friedrich Sommer, 2017. "The impact of corporate sustainability performance on information asymmetry: the role of institutional differences," Review of Managerial Science, Springer, vol. 11(2), pages 471-517, March.
    17. Mărioara Beleneși & Victoria Bogdan & Dorina Nicoleta Popa, 2021. "Disclosure Dynamics and Non-Financial Reporting Analysis. The Case of Romanian Listed Companies," Sustainability, MDPI, vol. 13(9), pages 1-23, April.
    18. Carmen Pilar Marti & M. Rosa Rovira‐Val & Lisa G. J. Drescher, 2015. "Are Firms that Contribute to Sustainable Development Better Financially?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(5), pages 305-319, September.
    19. Abhijit Roy & Paramita Mukherjee, 2025. "Does National Culture Influence Corporate ESG Disclosures? Evidence from Cross-Country Study," Vision, , vol. 29(4), pages 438-454, August.
    20. J. Aloy Niresh & W. H. E. Silva, 2018. "The Nexus between Corporate Social Responsibility Disclosure and Financial Performance: Evidence from the Listed Banks, Finance and Insurance Companies in Sri Lanka," Accounting and Finance Research, Sciedu Press, vol. 7(2), pages 1-65, May.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:12:y:2023:i:4:p:217-228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.