Corporate Social Responsibility, Ownership Structure, and Financial Performance: An Analysis of Taiwan's Food and Catering Industry

Shu-Yu Lin, Che-Chiang Hsu and Chester Wai-Jen Liu

Journal of Applied Finance & Banking, 2023, vol. 13, issue 6, 11

Abstract: This study explores the interplay between corporate social responsibility (CSR), ownership structure, and financial performance within a diverse sample of firms, both listed and OTC, in Taiwan's food and catering industry. The empirical results clearly indicate no direct link between financial performance and the active implementation of CSR initiatives. Yet, the research supports the monitoring hypothesis, convincingly suggesting that block-holder ownership can effectively supervise managerial actions, thereby reducing agency conflicts and potentially improving financial outcomes. Furthermore, the study underscores the convergence-of-interest hypothesis, emphasizing that when managerial insiders’ interests closely align with those of shareholders through equity ownership, it can notably enhance a firm’s financial performance.  JEL classification numbers: G32.

Keywords: Corporate Social Responsibility (CSR); Ownership Structure; Financial Performance. (search for similar items in EconPapers)
Date: 2023
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