Effect of the Disclosure of Corporate Social Responsibility on Business Profitability. A Dimensional Analysis in the Spanish Stock Market

Sandra Escamilla-Solano, Antonio Fernández-Portillo, Jessica Paule-Vianez and Paola Plaza-Casado
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Sandra Escamilla-Solano: Department of Business Economics, Rey Juan Carlos University, Paseo Artilleros s/n, 28032 Madrid, Spain
Antonio Fernández-Portillo: Department of Financial Economics and Accounting, University of Extremadura, Av. De la Universidad s/n, 10003 Cáceres, Spain
Jessica Paule-Vianez: Department of Business Economics, Rey Juan Carlos University, Paseo Artilleros s/n, 28032 Madrid, Spain
Paola Plaza-Casado: Department of Business Economics, Rey Juan Carlos University, Paseo Artilleros s/n, 28032 Madrid, Spain

Sustainability, 2019, vol. 11, issue 23, 1-17

Abstract: In recent decades, the novel fact of considering corporate social responsibility (CSR) as part of the corporate strategy of companies has resulted in interest groups demanding the disclosure of such information. Likewise, considering their importance of transparency and governance today, it is necessary to make an approximation on the study of the divulgation of CSR information on companies listed on the Spanish stock market. The aim of this work is to determine whether the disclosure of the measures taken by the companies on CSR influences business profitability. Applying PLS-SEM on the information extracted from the sustainability reports of 103 companies listed on the Spanish continuous market, it is found that the disclosure of CSR measures improves business profitability in its social and economic dimensions, with no effect being found between the disclosure CSR in its environmental dimension on business profitability.

Keywords: corporate social responsibility; business profitability; PLS (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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