Corporate social responsibility, financial instability and corporate financial performance: Linear, non-linear and spillover effects – The case of the CAC 40 companies
Abderrahmane Jahmane and
Brahim Gaies
Finance Research Letters, 2020, vol. 34, issue C
Abstract:
This article examines the influence of corporate social responsibility (CSR) on the financial performance (CFP) for CAC 40 companies from 2002 to 2017, considering the effect of financial instability at the macro level. We based our approach on a dynamic modeling of the CFP-CSR relationship, as well as on the generalized method of moments (GMM) to overcome the problem of endogeneity. Our results show that CSR positively affects the CFP in two ways: directly, through an overall positive non-linear effect, and indirectly by mitigating the negative effect of banking crises on the CFP, which is a positive spillover effect.
Keywords: Financial instability; Corporate social responsibility; Corporate financial performance; Endogeneity; Generalized method of moments (GMM); JEL: G30, G34, F41, C02 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612319314576
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:34:y:2020:i:c:s1544612319314576
DOI: 10.1016/j.frl.2020.101483
Access Statistics for this article
Finance Research Letters is currently edited by R. Gençay
More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().