Abstract
The theoretical and empirical relationships between corporate social responsibility (CSR) and corporate financial performance are not without controversy. Yet, CSR activities are increasingly undertaken by a large number of firms, not only in developed countries but also in emerging countries. This paper aims to investigate the moderating effect of different aspects of corporate governance, which are foreign and state ownership, board size and board independence, on the relationship between CSR and financial performance.
Design/methodology/approach:
A sample of Vietnamese listed firms is analyzed. Robust regression analysis is performed using ordinary least squares as well as fixed-effects and two-stage least squares model.
Findings:
Ordinary least squares regression results show that CSR activities affect the financial performance of firms positively. Furthermore, corporate governance features like foreign ownership, board size and board independence strengthen the positive relationship between CSR and financial performance, but there is no such impact of state ownership.
Originality/value:
Previous studies mostly investigate the direct effect of CSR on financial performance. A few studies examine the moderating effect of corporate governance, which is ownership concentration and board gender diversity. As an emerging country, Vietnam has some specific characteristics on corporate governance. This paper contributes by investigating the moderating effect of few major aspects of corporate governance, which are foreign and state ownership, board size and board independence.
| Original language | English |
|---|---|
| Pages (from-to) | 227-258 |
| Journal | Pacific Accounting Review |
| Volume | 29 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 2017 |
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Keywords
- Corporate social responsibility, Vietnam, Firm performance, Corporate governance
Cite this
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Does corporate governance shape the relationship between corporate social responsibility and financial performance? / Kabir, Rezaul; Thai Minh, Hahn.
In: Pacific Accounting Review, Vol. 29, No. 2, 2017, p. 227-258.Research output: Contribution to journal › Article › Academic › peer-review
TY - JOUR
T1 - Does corporate governance shape the relationship between corporate social responsibility and financial performance?
AU - Kabir, Rezaul
AU - Thai Minh, Hahn
PY - 2017
Y1 - 2017
N2 - Purpose:The theoretical and empirical relationships between corporate social responsibility (CSR) and corporate financial performance are not without controversy. Yet, CSR activities are increasingly undertaken by a large number of firms, not only in developed countries but also in emerging countries. This paper aims to investigate the moderating effect of different aspects of corporate governance, which are foreign and state ownership, board size and board independence, on the relationship between CSR and financial performance.Design/methodology/approach:A sample of Vietnamese listed firms is analyzed. Robust regression analysis is performed using ordinary least squares as well as fixed-effects and two-stage least squares model.Findings:Ordinary least squares regression results show that CSR activities affect the financial performance of firms positively. Furthermore, corporate governance features like foreign ownership, board size and board independence strengthen the positive relationship between CSR and financial performance, but there is no such impact of state ownership.Originality/value:Previous studies mostly investigate the direct effect of CSR on financial performance. A few studies examine the moderating effect of corporate governance, which is ownership concentration and board gender diversity. As an emerging country, Vietnam has some specific characteristics on corporate governance. This paper contributes by investigating the moderating effect of few major aspects of corporate governance, which are foreign and state ownership, board size and board independence.
AB - Purpose:The theoretical and empirical relationships between corporate social responsibility (CSR) and corporate financial performance are not without controversy. Yet, CSR activities are increasingly undertaken by a large number of firms, not only in developed countries but also in emerging countries. This paper aims to investigate the moderating effect of different aspects of corporate governance, which are foreign and state ownership, board size and board independence, on the relationship between CSR and financial performance.Design/methodology/approach:A sample of Vietnamese listed firms is analyzed. Robust regression analysis is performed using ordinary least squares as well as fixed-effects and two-stage least squares model.Findings:Ordinary least squares regression results show that CSR activities affect the financial performance of firms positively. Furthermore, corporate governance features like foreign ownership, board size and board independence strengthen the positive relationship between CSR and financial performance, but there is no such impact of state ownership.Originality/value:Previous studies mostly investigate the direct effect of CSR on financial performance. A few studies examine the moderating effect of corporate governance, which is ownership concentration and board gender diversity. As an emerging country, Vietnam has some specific characteristics on corporate governance. This paper contributes by investigating the moderating effect of few major aspects of corporate governance, which are foreign and state ownership, board size and board independence.
KW - Corporate social responsibility, Vietnam, Firm performance, Corporate governance
U2 - 10.1108/PAR-10-2016-0091
DO - 10.1108/PAR-10-2016-0091
M3 - Article
VL - 29
SP - 227
EP - 258
JO - Pacific Accounting Review
JF - Pacific Accounting Review
SN - 0114-0582
IS - 2
ER -