Impact of corporate political activity on the relationship between corporate social responsibility and financial performance: a dynamic panel data approach
As corporate social responsibility (CSR) gains momentum in the business world, it is imperative to comprehend the relationship between CSR and corporate financial performance (CFP). While there is prior research looking at this relationship, scholars have proposed a contingency view that is meant to...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2019
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/80154/1/Impact%20of%20Corporate%20Political%20Activity%20on%20the%20Relationship%20Between%20Corporate%20Social%20Responsibility%20and%20Financial%20Performance%20A%20Dynamic%20Panel%20Data%20Approach.pdf |
| _version_ | 1825951268071276544 |
|---|---|
| author | Lin, Woon Leong Jo, Ann Ho Sambasivan, Murali |
| author_facet | Lin, Woon Leong Jo, Ann Ho Sambasivan, Murali |
| author_sort | Lin, Woon Leong |
| collection | UPM |
| description | As corporate social responsibility (CSR) gains momentum in the business world, it is imperative to comprehend the relationship between CSR and corporate financial performance (CFP). While there is prior research looking at this relationship, scholars have proposed a contingency view that is meant to determine the situational contexts in which critical associations between CFP and CSR activities will arise. This study provides further insight into the moderating effects of corporate political activity, specifying the ways in which different arrangements of corporate CSR and CPA might align or otherwise, thus influencing CFP beyond associated dissimilar effects on corporate performance. The data for this study was obtained for the periods 2007–2016 from the samples selected from the list of Fortune’sWorld’s Most Admired Companies. The dynamic panel data was analyzed using the System Generalized Method of Moment estimation. The main findings are that CSR does not significantly influence CFP. However, CPA does negatively moderate the relationship between CSR and CFP. This indicates that high political expenditures worsen a firm’s financial. |
| first_indexed | 2024-03-06T10:27:25Z |
| format | Article |
| id | upm.eprints-80154 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T10:27:25Z |
| publishDate | 2019 |
| publisher | MDPI AG |
| record_format | dspace |
| spelling | upm.eprints-801542020-09-30T08:19:55Z http://psasir.upm.edu.my/id/eprint/80154/ Impact of corporate political activity on the relationship between corporate social responsibility and financial performance: a dynamic panel data approach Lin, Woon Leong Jo, Ann Ho Sambasivan, Murali As corporate social responsibility (CSR) gains momentum in the business world, it is imperative to comprehend the relationship between CSR and corporate financial performance (CFP). While there is prior research looking at this relationship, scholars have proposed a contingency view that is meant to determine the situational contexts in which critical associations between CFP and CSR activities will arise. This study provides further insight into the moderating effects of corporate political activity, specifying the ways in which different arrangements of corporate CSR and CPA might align or otherwise, thus influencing CFP beyond associated dissimilar effects on corporate performance. The data for this study was obtained for the periods 2007–2016 from the samples selected from the list of Fortune’sWorld’s Most Admired Companies. The dynamic panel data was analyzed using the System Generalized Method of Moment estimation. The main findings are that CSR does not significantly influence CFP. However, CPA does negatively moderate the relationship between CSR and CFP. This indicates that high political expenditures worsen a firm’s financial. MDPI AG 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/80154/1/Impact%20of%20Corporate%20Political%20Activity%20on%20the%20Relationship%20Between%20Corporate%20Social%20Responsibility%20and%20Financial%20Performance%20A%20Dynamic%20Panel%20Data%20Approach.pdf Lin, Woon Leong and Jo, Ann Ho and Sambasivan, Murali (2019) Impact of corporate political activity on the relationship between corporate social responsibility and financial performance: a dynamic panel data approach. Sustainability, 11 (1). pp. 2-22. ISSN 2071-1050 https://www.researchgate.net/publication/329903376_Impact_of_Corporate_Political_Activity_on_the_Relationship_Between_Corporate_Social_Responsibility_and_Financial_Performance_A_Dynamic_Panel_Data_Approach 10.3390/su11010060 |
| spellingShingle | Lin, Woon Leong Jo, Ann Ho Sambasivan, Murali Impact of corporate political activity on the relationship between corporate social responsibility and financial performance: a dynamic panel data approach |
| title | Impact of corporate political activity on the relationship between corporate social responsibility and financial performance: a dynamic panel data approach |
| title_full | Impact of corporate political activity on the relationship between corporate social responsibility and financial performance: a dynamic panel data approach |
| title_fullStr | Impact of corporate political activity on the relationship between corporate social responsibility and financial performance: a dynamic panel data approach |
| title_full_unstemmed | Impact of corporate political activity on the relationship between corporate social responsibility and financial performance: a dynamic panel data approach |
| title_short | Impact of corporate political activity on the relationship between corporate social responsibility and financial performance: a dynamic panel data approach |
| title_sort | impact of corporate political activity on the relationship between corporate social responsibility and financial performance a dynamic panel data approach |
| url | http://psasir.upm.edu.my/id/eprint/80154/1/Impact%20of%20Corporate%20Political%20Activity%20on%20the%20Relationship%20Between%20Corporate%20Social%20Responsibility%20and%20Financial%20Performance%20A%20Dynamic%20Panel%20Data%20Approach.pdf |
| work_keys_str_mv | AT linwoonleong impactofcorporatepoliticalactivityontherelationshipbetweencorporatesocialresponsibilityandfinancialperformanceadynamicpaneldataapproach AT joannho impactofcorporatepoliticalactivityontherelationshipbetweencorporatesocialresponsibilityandfinancialperformanceadynamicpaneldataapproach AT sambasivanmurali impactofcorporatepoliticalactivityontherelationshipbetweencorporatesocialresponsibilityandfinancialperformanceadynamicpaneldataapproach |