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Corporate social responsibility and corporate performance: a quantile regression approach

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  • Hsin-Hong Kang
  • Shu-Bing Liu

Abstract

This paper investigates the impact of corporate social responsibility activities on corporate performance. In view of the inconsistent empirical findings in the literature, and the limitations of least squares regressions, we adopt a quantile regression method to fill this gap in the literature. An important finding is that the sensitivity of a company’s performance to its engagement in corporate social responsibility activities does not vary with the quantile location of the firm’s performance level, and the engagement in corporate social responsibility activities has a significant positive relation with corporate performance across all quantiles. This study argues that undertaking corporate social responsibility leads to greater financial returns than the related costs. Therefore, this study concludes that engaging in corporate social responsibility is beneficial for firms, and thus worth implementing. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Hsin-Hong Kang & Shu-Bing Liu, 2014. "Corporate social responsibility and corporate performance: a quantile regression approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(6), pages 3311-3325, November.
    • Handle: RePEc:spr:qualqt:v:48:y:2014:i:6:p:3311-3325
    DOI: 10.1007/s11135-013-9958-6
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    Cited by:

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    3. Fu-Chiang Yang, 2017. "Integrating corporate social responsibility and profitability into best practice selection: the case of large Taiwanese firms," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1493-1512, July.
    4. Woon Leong Lin & Chin Lee & Siong Hook Law, 2021. "Asymmetric effects of corporate sustainability strategy on value creation among global automotive firms: A dynamic panel quantile regression approach," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 931-954, February.
    5. Maria Krechowicz & Katarzyna Kiliańska, 2021. "Risk and Opportunity Assessment Model for CSR Initiatives in the Face of Coronavirus," Sustainability, MDPI, vol. 13(11), pages 1-22, May.
    6. Nana Liu & Chuanzhe Liu & Quan Guo & Bowen Da & Linna Guan & Huiying Chen, 2019. "Corporate Social Responsibility and Financial Performance: A Quantile Regression Approach," Sustainability, MDPI, vol. 11(13), pages 1-22, July.
    7. Dayuan Li & Linna Xin & Xiaohong Chen & Shenggang Ren, 2017. "Corporate social responsibility, media attention and firm value: empirical research on Chinese manufacturing firms," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1563-1577, July.
    8. Faisal Shahzad & Ijaz Ur Rehman & Faisal Nawaz & Noman Nawab, 2018. "Does family control explain why corporate social responsibility affects investment efficiency?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 880-888, September.
    9. Yu, Zuwei & Chen, Guangren & Pei, Xiangjing & Gao, Zhixiong & Ding, Yu, 2024. "The impact of corporate social responsibility on green technology innovation: An empirical study of listed companies in China," Finance Research Letters, Elsevier, vol. 66(C).
    10. Thi Viet Ha Hoang & Ngoc Hung Dang & Manh Dung Tran & Thi Thuy Van Vu & Quang Trung Pham, 2019. "Determinants Influencing Financial Performance of Listed Firms: Quantile Regression Approach," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(1), pages 78-90, January.
    11. Ionica Oncioiu & Anca-Gabriela Petrescu & Florentina-Raluca Bîlcan & Marius Petrescu & Delia-Mioara Popescu & Elena Anghel, 2020. "Corporate Sustainability Reporting and Financial Performance," Sustainability, MDPI, vol. 12(10), pages 1-13, May.
    12. Yali Yi & Pelin Demirel, 2023. "The impact of sustainability‐oriented dynamic capabilities on firm growth: Investigating the green supply chain management and green political capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5873-5888, December.
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