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The Relationship between Corporate Social Responsibility and Firm Performance: An Application of Quantile Regression

This study empirically examines the relationship between a firm’s fulfilling of corporate social responsibility (CSR) and performance. We developed a CSR index (CSRI) to quantitatively evaluate CSR, which consists of four dimensions measuring a firm’s contributions to the economy, society, environme...

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Bibliographic Details
Published in:Frontiers of business research in China 2012, Vol.6 (2), p.218-244
Main Authors: George Wang, Yungchih, Lydia Hsu, Wen-Hsi, Chang, Kuang-Wen
Format: Article
Language:English
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Summary:This study empirically examines the relationship between a firm’s fulfilling of corporate social responsibility (CSR) and performance. We developed a CSR index (CSRI) to quantitatively evaluate CSR, which consists of four dimensions measuring a firm’s contributions to the economy, society, environment, and corporate governance, respectively. With data from publicly-listed firms in Taiwan during the period of 2004–2009, results of quantile regression show that fulfilling CSR has a significantly positive impact on firm performance, and that the impact in a more profitable firm tends to be significantly greater than that in a less profitable firm. Specifically, when a firm is more profitable, its management would be more willing to implement CSR. The implication is that a firm could pursue better performance while serving as a good corporate citizen.
ISSN:1673-7326
1673-7431
DOI:10.3868/s070-001-012-0011-3