The Industry-Specific Relationships between Corporate Financial Performance and 11 Corporate Social Performance Dimensions: Taking a More Nuanced Perspective

Sebastian Rathner ()

No 2013-2, Working Papers in Economics from University of Salzburg

Abstract: The aim of this paper is to investigate the influence of corporate social performance (CSP) dimensions on corporate financial performance (CFP). It contributes to the literature by exploring a new CSP dataset, by using a more fine-grained CSP measure than prior studies, by explicitly taking industry-specific differences in the CFP-CSP relationship into account and by using an instrumental variable approach to account for endogeneity. 3772 companies out of 10 industry classes are included in the analysis. The results suggest that some CSP dimensions positively influence CFP (e.g. corporate governance) while others impact CFP negatively (e.g. operations). These results remain largely unchanged if endogeneity is taken into account by estimating instrumental variable regressions. Further results show, that the relationships between CSP dimensions and CFP differ by industry class membership.

Keywords: Corporate financial performance; Corporate social performance; Instrumental variable approach (search for similar items in EconPapers)
JEL-codes: G12 M14 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2013-07-18
New Economics Papers: this item is included in nep-eff
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.uni-salzburg.at/fileadmin/multimedia/SO ... pers/wp2013_no02.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.uni-salzburg.at/fileadmin/multimedia/SOWI/documents/working_papers/wp2013_no02.pdf [302 Moved Temporarily]--> https://www.uni-salzburg.at/fileadmin/multimedia/SOWI/documents/working_papers/wp2013_no02.pdf [301 Moved Permanently]--> https://www.plus.ac.at/404)

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:ris:sbgwpe:2013_002

Access Statistics for this paper

More papers in Working Papers in Economics from University of Salzburg Contact information at EDIRC.
Bibliographic data for series maintained by Jörg Paetzold ().