Agency problem - a missing link between corporate social responsibility reporting and firm performance

Hien Thi Tran, Hanh Song Thi Pham and Hung Doan ()

International Journal of Business Governance and Ethics, 2025, vol. 19, issue 1, 112-130

Abstract: This study investigates the mediating impact of agency problem on the effect of CSR reporting to firm performance. Using the OLS regression method to analyse a dataset of 5,831 firm-year observations of 833 large firms from 30 countries across seven years from 2013 to 2019, the study finds that agency problem is a missing link that mediates the influence of CSR reporting on a firm's economic performance. The results hold in the system GMM estimations. The study unpacks the black box of CSR-firm performance relation in which CSR reporting benefits firm performance through diminishing the agency problem. Unlike the existing literature that only emphasises the role of a corporate board to handle agency problem, this study highlights the role of CSR reporting as an alternative mechanism to mitigate agency problem. Our finding confirms that CSR reporting is fruitful to shareholders; CSR reporting can be employed as a measure to improve principle-agent relationship.

Keywords: agency problem; corporate social responsibility; CSR; CSR reporting; performance. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=142914 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijbget:v:19:y:2025:i:1:p:112-130

Access Statistics for this article

More articles in International Journal of Business Governance and Ethics from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().