Corporate Social Responsibility and Corporate Financial Performance: Evidence from Korea

Jong-Seo Choi, Young-Min Kwak and Chongwoo Choe

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies the empirical relation between corporate social responsibility (CSR) and corporate financial performance in Korea using a sample of 1122 firm-years during 2002-2008. We measure corporate social responsibility by both an equal-weighted CSR index and a stakeholder-weighted CSR index suggested by Akpinar et al. (2008). Corporate financial performance is measured by ROE, ROA and Tobin’s Q. We find a positive and significant relation between corporate financial performance and the stakeholder-weighted CSR index, but not the equal-weighted CSR index. This finding is robust to alternative model specifications and several additional tests, providing evidence in support of instrumental stakeholder theory.

Keywords: corporate social responsibility; corporate financial performance; KEJI index; instrumental stakeholder theory (search for similar items in EconPapers)
JEL-codes: D21 G30 L21 M14 (search for similar items in EconPapers)
Date: 2010-04-17
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (73)

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Related works:
Journal Article: Corporate social responsibility and corporate financial performance: Evidence from Korea (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:22159

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