IDEAS home Printed from https://ideas.repec.org/p/ris/sbgwpe/2013_002.html
   My bibliography  Save this paper

The Industry-Specific Relationships between Corporate Financial Performance and 11 Corporate Social Performance Dimensions: Taking a More Nuanced Perspective

Author

Listed:
  • Rathner, Sebastian

    () (University of Salzburg)

Abstract

The aim of this paper is to investigate the influence of corporate social performance (CSP) dimensions on corporate financial performance (CFP). It contributes to the literature by exploring a new CSP dataset, by using a more fine-grained CSP measure than prior studies, by explicitly taking industry-specific differences in the CFP-CSP relationship into account and by using an instrumental variable approach to account for endogeneity. 3772 companies out of 10 industry classes are included in the analysis. The results suggest that some CSP dimensions positively influence CFP (e.g. corporate governance) while others impact CFP negatively (e.g. operations). These results remain largely unchanged if endogeneity is taken into account by estimating instrumental variable regressions. Further results show, that the relationships between CSP dimensions and CFP differ by industry class membership.

Suggested Citation

  • Rathner, Sebastian, 2013. "The Industry-Specific Relationships between Corporate Financial Performance and 11 Corporate Social Performance Dimensions: Taking a More Nuanced Perspective," Working Papers in Economics 2013-2, University of Salzburg.
  • Handle: RePEc:ris:sbgwpe:2013_002
    as

    Download full text from publisher

    File URL: http://www.uni-salzburg.at/fileadmin/multimedia/SOWI/documents/working_papers/wp2013_no02.pdf
    File Function: Full text
    Download Restriction: no

    More about this item

    Keywords

    Corporate financial performance; Corporate social performance; Instrumental variable approach;

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ris:sbgwpe:2013_002. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jörg Paetzold). General contact details of provider: http://edirc.repec.org/data/iwsbgat.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.