Impact of CSR on financial performance of Casablanca Stock Exchange companies: A longitudinal study (original) (raw)
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Impact of corporate social responsibility on financial performance of listed Moroccan companies
International Journal of Financial Accountability, Economics, Management, and Auditing (IJFAEMA)
This paper aims to study empirically the relationship between corporate social responsibility (CSR) and financial performance (FP) in the Moroccan context. We opted for a longitudinal study of listed companies over the period 2012-2017. We have used the accounting and financial indicators to assess FP. In the absence of an index which measures the score of the PS, we opted for a dichotomous variable which takes a value 1 if the company is labeled CSR by the CGEM and value 0 if not. Control variables are measured by size, age, risk, and industry. Panel data are used as well to analyze data. Findings of this study indicate mixed results. Indeed, we have found a positive impact of CSR on PF, when using ROA as proxy for FP. However, when using ROE as proxy for FP, we do not find any impact of CSR on FP (neutral impact). We found that ROS is linked negatively with CSR.
Estudios Gerenciales
This article analyzes the complexity of the linkages between corporate social responsibility (CSR) and firm performance in Morocco and to decompose this complexity through a bidirectional sense of causality. Using data surveyed from 74 Moroccan listed firms, we conduct an econometric modeling to measure this relationship bilaterally and to investigate the underlying factors behind this association. The empirical study proves the existence of a positive association between CSR and firm performance in both directions in the Moroccan context and suggests that the more social enterprises are, the more they achieve better financial results. The mutual linkage between social and financial aspects allows us to draw some managerial implications and set up further research directions.
2012
This research examines the effects of Corporate Social Responsibility on the financial performance. The corporate social responsibility is measured by an investigation which is addressed to a 30 companies. Thus the financial performance is measured using two accounting variables: return in assets (ROA) and return in equity (ROE). The financial data are those of 2004, 2005, 2006, and 2007 reports. The results show the absence of relationship between the RSE and the financial performance measured by ROA, whereas there is a positive relationship if the financial performance is measured by the ROE.
2014
This paper investigates the effect of corporate social responsibility (CSR) on organization performance. It uses cross sectional data from non-financial companies in Egypt that derived from the Kompass Egypt data base. Regression analysis was used to explain the relationship and the effect of CSR on organization financial performance. The findings of this study found that there is a positive and significant effect of CSR on firm performance. Also, all CSR dimensions have significant relationship with firm financial performance. Furthermore, one of the conclusions of this study is that larger and older firms have a positive effect on financial performance (profitability) which will lead to enhance use of better CSR practice.
Corporate social responsibility and financial performance: correlation or misspecification?
Strategic Management Journal, 2000
This article will support on the econometrics of panel data to analyse the influence of corporate social responsibility (CSR) on the financial performance measured by several indicators. From a sample of 20 firms listed on the stock exchange of Casablanca between 2007 and 2010. Our research found a negative and significant impact of the CSR on financial performance. The negative influence is important in large companies, which means it is a mediating factor.
Corporate Social Responsibility and Financial Performance: Evidence from Tunisian Market
The issue of this paper is to assess the contribution of social responsibility on the development and increase of corporate financial performance. Our paper uses a sample of Tunisian companies from industrial and service sector to test the relationship social-financial performance using three steps representing the responsibility to employees, the environmental responsibility and responsibility to the community. The results have stipulated the existence of significant relationship.
Human Systems Management , 2021
BACKGROUND: Although CSR has been studied extensively based on developed countries, very few studies has been done on developing economies. Likewise, the field of CSR is still uncovered ground, at an early stage of development in the Maldives. OBJECTIVE: The objective of this study is to examine the impact of overall CSR ranking, and individual CSR dimensions on the financial performance of the listed companies in the Maldives. METHODOLOGY: Secondary data related to CSR, financial variables have been collected from the Maldives Stock Exchange, and through content analysis, a CSR index was developed. RESULTS: Findings demonstrated a significant relationship between overall CSR ranking and financial. However, among the dimensions of CSR, only the community and governance have a significant positive association with financial measures, where else the dimensions of employees and environment do not have any significance with financial performance. CONCLUSION: The paper includes implications to control the effect of CSR on company performance strategically and to revise their business philosophies to a socially responsible approach. It also contributes to helping the decision-makers to come up with concepts to initiate and provide a social performance rating for the Maldives listed companies.
Study on the Relationship between CSR and Financial Performance
Sustainability, 2019
This study analyzed whether a systematic relationship exists between corporate social responsibility (CSR) performance and corporate financial performance using 191 sample firms listed on the Korea Exchange. The Korea Economic Justice Institute (KEJI) index of 2015 was used to measure CSR performance; profitability and firm value were used to measure corporate financial performance. Return on assets was used as a proxy for profitability, and Tobin’s Q was used as a proxy for firm value. The correlation between these variables and CSR performance was examined through correlation and regression analysis. The results confirm that CSR performance has a partial positive correlation with profitability and firm value. These results are partly consistent with those of previous studies reporting a positive relationship between CSR and Korean firms’ financial performance using the KEJI index before 2011. In the relationship between CSR performance and profitability, only social contribution y...
Corporate social responsibility effect on firm's financial performance in Jordan
Int. J. Monetary Economics and Finance, Vol. 12, No. 4, 2019, 2019
The aim of the study investigates the impact of dimensions of corporate social responsibility (CSR) (environmental, community service, and human resources) on financial performance measured by return on assets (ROA). The sample of the study included the used (15) Jordanian companies listed in Amman stock exchange as a sample of this research during the period 2012-2016. To achieve the purposes of the study, and to analyse the data extracted from the annual reports, the researcher used simple and multiple linear regression methods. Social responsibility (environmental, community service, and human resources) on financial performance measured by ROA.
This study aims to analyze relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) using content analysis from 1972 to 2012. In this study, strategy of Margolis and Walsh (2001), Orlitzky et al. (2003), and Dam (2008) is implemented and financial measures such as stock market returns, Tobin’s Q, and accounting profits ratios e.g. return on assets (ROA), return on equity (ROE), and return on sales (ROS) are targeted. Study concludes that strong positive relationship exists between CSR and CFP using Tobin’s Q as financial performance measure, mostly studies found positive relationship between CSR and CFP using ROA, ROE, & ROS as financial performance measure, and mostly studies found negative relationship between CSR and CFP using stock market returns as financial performance measures. This study will provide literature evidences as record about CSR and CFP to empirical as well as theoretical prospective researcher and limitations are discussed also.