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An Empirical Analysis of Corporate Social Responsibility Effects on Financial Performance for Romanian Listed Companies

Author

Listed:
  • Mariana Vu?ã

    (Bucharest University of Economic Studies, Romania)

  • Sorin-Iulian Cioacã

    (Bucharest University of Economic Studies, Romania)

  • Mihai Vuþã

    (Bucharest University of Economic Studies, Romania)

  • Adrian Enciu

    (Bucharest University of Economic Studies, Romania)

Abstract

The focus on corporate social responsibility (CSR) becomes central all over the world, being influenced by various factors, such as economic and employment crisis, fiscal issues, increasing competition, but also the interaction of environmental and social components with the economic performance. Moreover, the occurrence of new trends in circular and bio-economy lead to a social responsible behaviour of the companies, in spite of the downsize in terms of short-term performance. As such, this study assesses the interaction between social performance, as shaped by CSR measures, and companies’ economic and financial performance. In order to assess the social performance, we define a CSR index and for financial performance, we use various accounting and market indicators. The analysis used data for 61 companies listed on Bucharest Stock Exchange for 2015-2017 timeframe, and the analysis was conducted using panel data regressions. We believe that the obtained results are explained by the companies’ focus, especially the ones with solid financial status, on the implementation of measures that are associated with bio-economy, targeting a reduced environmental impact, and with social programs and activities. This research also emphasizes some issues for the listed companies on the Bucharest Stock Exchange, but also for other stakeholders.

Suggested Citation

  • Mariana Vu?ã & Sorin-Iulian Cioacã & Mihai Vuþã & Adrian Enciu, 2019. "An Empirical Analysis of Corporate Social Responsibility Effects on Financial Performance for Romanian Listed Companies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(52), pages 607-607, August.
    • Handle: RePEc:aes:amfeco:v:21:y:2019:i:52:p:607
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    References listed on IDEAS

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    Cited by:

    1. Agnes Horvath & Adrienn Takacs Papp, & Katalin Liptak & Laszlo Molnar & Klara Szucs Markovics & Ioana Manafi & Zoltan Musinszki, 2022. "Decarbonisation and financial performance of energy companies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 701-701, August.
    2. Daniel RUSU, 2021. "PERFORMANCE AND CORPORATE SOCIAL RESPONSIBILITY IN SMEs," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 638-646, November.
    3. Maria LOGHIN & Răzvan Cătălin DOBREA & Octavian Mihai PERPELEA, 2022. "SWOT Analysis and Key Actors in the Field of CSR," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(2), pages 246-257, June.

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    More about this item

    Keywords

    financial performance; corporate social responsibility; capital market; bioeconomy;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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