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An application of artificial neural networks in corporate social responsibility decision making

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  • Nguyen Thi Thanh Binh

Abstract

Neural networks in deep learning are changing the way we interact with the world. This paper focuses on building a logit artificial neural network (ANN) and through it finds out the factors affecting the decision to join corporate social responsibility (CSR) of firms. This study contributes to suggesting new directions for research in the artificial intelligence (AI) era on the relationship between corporate governance and CSR. The dataset of 817 Taiwanese electronic firms is analyzed for the period 2014–2020. The empirical results show that when the power of the board of directors, supervisors, and CEOs are higher, firms do not choose to participate in CSR. The independent board has not yet promoted its corporate oversight of CSR participation. The decision not to participate in CSR of the firms is made when they are more equipped with the background of accounting, finance, and law. Only firms with higher debt, asset value, and profitability are willing to join CSR. These research results suggest some important points for future policy reforms towards sustainability.

Suggested Citation

  • Nguyen Thi Thanh Binh, 2024. "An application of artificial neural networks in corporate social responsibility decision making," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 31(1), March.
    • Handle: RePEc:wly:isacfm:v:31:y:2024:i:1:n:e1542
    DOI: 10.1002/isaf.1542
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