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Firm growth, business risk, and corporate social responsibility in Taiwan's food industry

Author

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  • Shiu-Wan Hung

    (Department of Business Administration, National Central University, Jung-li City, Taoyuan, Taiwan)

  • Chiao-Ming Li

    (Department of Business Administration, National Central University, Jung-li City, Taoyuan, Taiwan)

  • Joe-Ming Lee

    (Department of Applied Economics, Fo Guang University, Jiaosi Shiang, Taiwan)

Abstract

This study applies the multiple-regime panel smooth transition regression (MR-PSTR) estimation to investigate the non-linear dynamic relationship between a firm's corporate social responsibility (CSR) and firm growth in the food industry under the size threshold, using a panel of 30 Taiwanese food firms during 2007-2017. Our empirical results reveal that firm growth and firm size present a non-linear relationship, and that firm growth is different under the size threshold value and the control variables of firm age, CSR, R&D innovation, and finance policy. Corporate social responsibility helps reduce business risk. Regardless of the type and size, for many food industries, CSR is no longer an arbitrary choice, but an essential requirement.

Suggested Citation

  • Shiu-Wan Hung & Chiao-Ming Li & Joe-Ming Lee, 2019. "Firm growth, business risk, and corporate social responsibility in Taiwan's food industry," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(8), pages 366-374.
    • Handle: RePEc:caa:jnlage:v:65:y:2019:i:8:id:339-2018-agricecon
    DOI: 10.17221/339/2018-AGRICECON
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