The dynamic causality between corporate social responsibility and corporate political activity: a panel vector autoregression approach

The objective of this study is to assess the dynamic causality between corporate social responsibility (CSR) and corporate political activity (CPA). This research uses panel vector autoregression (VAR) model within the framework of generalized method of moments (GMM) with consideration to the time i...

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Main Authors: Horiguchi, Shinji, Lin, Woon Leong, Law, Siong Hook
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2018
Online Access:http://psasir.upm.edu.my/id/eprint/16103/1/17%29%20%20Dynamic%20Causality%20CSR.pdf
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author Horiguchi, Shinji
Lin, Woon Leong
Law, Siong Hook
author_facet Horiguchi, Shinji
Lin, Woon Leong
Law, Siong Hook
author_sort Horiguchi, Shinji
collection UPM
description The objective of this study is to assess the dynamic causality between corporate social responsibility (CSR) and corporate political activity (CPA). This research uses panel vector autoregression (VAR) model within the framework of generalized method of moments (GMM) with consideration to the time invariant characteristics of each organisation. Based on a sample of 100 World’s Most Admired Companies (WMAC) listed in Fortune between 2007 and 2016, this study provides empirical evidences that the CPA negatively affects the CSR, while enhanced CSR does not warrant an enhanced CPA. The findings of this study contradict the notion propounded by the hypothesis of virtuous circle which states that there is a positive relationship and mutual reinforcement between CSR and CPA.
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spelling upm.eprints-161032019-11-12T07:06:09Z http://psasir.upm.edu.my/id/eprint/16103/ The dynamic causality between corporate social responsibility and corporate political activity: a panel vector autoregression approach Horiguchi, Shinji Lin, Woon Leong Law, Siong Hook The objective of this study is to assess the dynamic causality between corporate social responsibility (CSR) and corporate political activity (CPA). This research uses panel vector autoregression (VAR) model within the framework of generalized method of moments (GMM) with consideration to the time invariant characteristics of each organisation. Based on a sample of 100 World’s Most Admired Companies (WMAC) listed in Fortune between 2007 and 2016, this study provides empirical evidences that the CPA negatively affects the CSR, while enhanced CSR does not warrant an enhanced CPA. The findings of this study contradict the notion propounded by the hypothesis of virtuous circle which states that there is a positive relationship and mutual reinforcement between CSR and CPA. Faculty of Economics and Management, Universiti Putra Malaysia 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/16103/1/17%29%20%20Dynamic%20Causality%20CSR.pdf Horiguchi, Shinji and Lin, Woon Leong and Law, Siong Hook (2018) The dynamic causality between corporate social responsibility and corporate political activity: a panel vector autoregression approach. International Journal of Economics and Management, 12 (spec. 2). pp. 523-534. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol12_noS2/17)%20%20Dynamic%20Causality%20CSR.pdf
spellingShingle Horiguchi, Shinji
Lin, Woon Leong
Law, Siong Hook
The dynamic causality between corporate social responsibility and corporate political activity: a panel vector autoregression approach
title The dynamic causality between corporate social responsibility and corporate political activity: a panel vector autoregression approach
title_full The dynamic causality between corporate social responsibility and corporate political activity: a panel vector autoregression approach
title_fullStr The dynamic causality between corporate social responsibility and corporate political activity: a panel vector autoregression approach
title_full_unstemmed The dynamic causality between corporate social responsibility and corporate political activity: a panel vector autoregression approach
title_short The dynamic causality between corporate social responsibility and corporate political activity: a panel vector autoregression approach
title_sort dynamic causality between corporate social responsibility and corporate political activity a panel vector autoregression approach
url http://psasir.upm.edu.my/id/eprint/16103/1/17%29%20%20Dynamic%20Causality%20CSR.pdf
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