When does it pay to be good? The impact of Sector-Specificity on the relationship between Corporate Social Responsibility Performance and Firm Financial Performance
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
The relationship of Corporate Social Responsibility Performance (CSRP) and Firm Financial Performance (FFP) gained great importance in the past years. Despite extensive research, related studies are contingent and results remain inconclusive, depicting positive, neutral or negative findings.
The complexity of the relationship suggests taking further interaction variables into account; hence, the main research aim of this thesis focuses on the effect of sector-specificity on the relationship between CSRP and FFP. Moreover, a closer look into the effect of the two distinct dimensions of CSRP, Environmental Performance (EP) and Social Performance (SP) will be taken. The study’s population objects are listed companies on the Swedish OMX Stockholm stock exchange. Choosing a quantitative research method, secondary data collection allows a final analysis by means of a moderated multiple regression.
Overall, our results are in line with previous studies, since the correlation (+/-) of the relationship CSRP-FFP is depending on the FFP measurement used. Due to a prevailing multicollinearity problem, no statement concerning the distinct CSRP dimensions (EP/SP) can be made. However, sector-specificity affirms to have a significant moderating effect on the relationship. Accordingly, the thesis contributes to the present knowledge gap within the research area, by giving evidence for an additional variable involved in the CSRP-FFP relation. Further research is suggested to acknowledge these findings.
Place, publisher, year, edition, pages
2014. , 67 p.
Corporate Social Responsibility Performance, Firm Financial Performance, Sector-specificity, Stakeholder theory, Legitimacy theory, Resource-based theory
Economics and Business
IdentifiersURN: urn:nbn:se:kau:diva-33502OAI: oai:DiVA.org:kau-33502DiVA: diva2:742231
Master Programme in Accounting and Control: Master (120 ECTS credits)
Sebhatu, Samuel Petros, Universitetslektor
Siverbo, Sven, Professor