Corporate Social Responsability and firm financial performance: the mediating role of political connection

Hela Garrouch, Badreddine Hamdi, Tarek Mejri () and Hicham Sbai
Additional contact information
Hela Garrouch: ISG - Institut Supérieur de Gestion de Tunis [Tunis] - Université de Tunis
Badreddine Hamdi: UB - Université de Bourgogne
Tarek Mejri: LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], UEVE - Université d'Évry-Val-d'Essonne
Hicham Sbai: UCD - Université Chouaib Doukkali

Post-Print from HAL

Abstract: This paper explores the relationship between Corporate Social Responsibility (CSR), firm performance and the moderating effect of political connection. We hypothesize that politically connected firms and especially those engaged in CSR activities tend to adopt more CSR initiatives that could provide multiple benefits to connected firms, and represents an important determinant of firm performance. Our empirical analysis, based on a sample of French companies listed on the SBF 120 index during the period 2011-2021, shows that CSR reporting enhances corporate financial performance. It has been demonstrated that political connections have a negative influence in controlling the relationship between CSR and firm. Thus, this research provides theoretical and empirical insights into the issue of political connection in relation to CSR. Overall, we conclude that regulators and stakeholders should be aware of the potential effect of engagement in CSR reporting as well as in political connection.

Keywords: Corporate Social Responsibility (CSR); Firm performance; Political connection family firms (search for similar items in EconPapers)
Date: 2023-06-01
References: Add references at CitEc
Citations:

Published in ADERSE 2023 : 19ème Congrès de l'ADERSE. "Mettre en œuvre et évaluer les démarches responsables", Jun 2023, La Rochelle, France

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:hal-04281418

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().