IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v31y2009i1p56-63.html
   My bibliography  Save this article

The impact of corporate social responsibility on financial performance: Evidence from business in Taiwan

Author

Listed:
  • Lin, Chin-Huang
  • Yang, Ho-Li
  • Liou, Dian-Yan

Abstract

Several research studies have examined corporate social responsibility (CSR) and its effects on business performance, but their results vary widely. This may stem from flawed analyses by regressing financial performance on corporate social performance, and/or perhaps from several inadequately controlled variables. Previous studies did not recognize investment in research and development as a critical variable because there is considerable empirical evidence to indicate that it has a strong positive impact on profitability. This misidentification creates biased estimates of the financial impact of CSR.

Suggested Citation

  • Lin, Chin-Huang & Yang, Ho-Li & Liou, Dian-Yan, 2009. "The impact of corporate social responsibility on financial performance: Evidence from business in Taiwan," Technology in Society, Elsevier, vol. 31(1), pages 56-63.
    • Handle: RePEc:eee:teinso:v:31:y:2009:i:1:p:56-63
    DOI: 10.1016/j.techsoc.2008.10.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X08000687
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2008.10.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John B. Guerard, Jr. & Alden S. Bean & Steven Andrews, 1987. "R&D Management and Corporate Financial Policy," Management Science, INFORMS, vol. 33(11), pages 1419-1427, November.
    2. Abagail McWilliams & Donald Siegel, 2000. "Corporate social responsibility and financial performance: correlation or misspecification?," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 603-609, May.
    3. Smith, Keith V. & Tito, Dennis A., 1969. "Risk-Return Measures of Ex Post Portfolio Performance†," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 4(4), pages 449-471, December.
    4. Hall, B.H., 1999. "Innovation and Market Value," Economics Papers 1999-w3, Economics Group, Nuffield College, University of Oxford.
    5. Zvi Griliches, 1984. "Market Value, R&D, and Patents," NBER Chapters, in: R&D, Patents, and Productivity, pages 249-252, National Bureau of Economic Research, Inc.
    6. Uri Ben-Zion, 1984. "The R&D and Investment Decision and Its Relationship to the Firm's Market Value: Some Preliminary Results," NBER Chapters, in: R&D, Patents, and Productivity, pages 299-314, National Bureau of Economic Research, Inc.
    7. Maignan, Isabelle & Ferrell, O. C., 2001. "Antecedents and benefits of corporate citizenship: an investigation of French businesses," Journal of Business Research, Elsevier, vol. 51(1), pages 37-51, January.
    8. Murray, Keith B. & Vogel, Christine M., 1997. "Using a hierarchy-of-effects approach to gauge the effectiveness of corporate social responsibility to generate goodwill toward the firm: Financial versus nonfinancial impacts," Journal of Business Research, Elsevier, vol. 38(2), pages 141-159, February.
    9. Parket, I. Robert & Eilbirt, Henry, 1975. "The practice of business social responsibility: the underlying factors," Business Horizons, Elsevier, vol. 18(4), pages 5-10, August.
    10. Christina L. Anderson & Rebecca L. Bieniaszewska, 2005. "The role of corporate social responsibility in an oil company's expansion into new territories," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 12(1), pages 1-9, March.
    11. Lichtenberg, Frank R & Siegel, Donald, 1991. "The Impact of R&D Investment on Productivity--New Evidence Using Linked R&D-LRD Data," Economic Inquiry, Western Economic Association International, vol. 29(2), pages 203-229, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hall, B.H., 1999. "Innovation and Market Value," Economics Papers 1999-w3, Economics Group, Nuffield College, University of Oxford.
    2. Galbreath, Jeremy, 2017. "Drivers Of Environmental Sustainability In Wine Firms: The Role And Effect Of Women In Leadership," Working Papers 253851, American Association of Wine Economists.
    3. Samy Garas & Osama El-Temtamy, 2020. "The “simultaneous cycle” between corporate social responsibility and firms’ financial performance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(2), pages 39-50, September.
    4. Shveta Kapoor & H.S. Sandhu, 2010. "Does it Pay to be Socially Responsible? An Empirical Examination of Impact of Corporate Social Responsibility on Financial Performance," Global Business Review, International Management Institute, vol. 11(2), pages 185-208, June.
    5. Nagaoka, Sadao, 2006. "R&D and market value of Japanese firms in the 1990s," Journal of the Japanese and International Economies, Elsevier, vol. 20(2), pages 155-176, June.
    6. Mariusz Zieliński & Izabela Jonek-Kowalska, 2021. "Does CSR Affect the Profitability and Valuation of Energy Companies? An Example from Poland," Energies, MDPI, vol. 14(12), pages 1-24, June.
    7. Mark Rogers, 2001. "The Effect of Diversification on Firm Performance," Melbourne Institute Working Paper Series wp2001n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    8. Nicolas van Zeebroeck, 2011. "The puzzle of patent value indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(1), pages 33-62.
    9. Austin, David H., 2000. "Patents, Spillovers, and Competition in Biotechnology," Discussion Papers 10808, Resources for the Future.
    10. Jong-Il Kim, 2004. "Information Technology and Firm Performance in Korea," NBER Chapters, in: Growth and Productivity in East Asia, pages 327-350, National Bureau of Economic Research, Inc.
    11. Yongqiang Gao & Jian Wu & Taïeb Hafsi, 2017. "The Inverted U‐Shaped Relationship between Corporate Philanthropy and Spending on Research and Development: A Case of Complementarity and Competition Moderated by Firm Size and Visibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 465-477, November.
    12. Christine Greenhalgh & Mark Rogers, 2006. "Trade Marks and Performance in UK Firms: Evidence of Schumpeterian Competition through Innovation," Discussion Papers 06-034, Stanford Institute for Economic Policy Research.
    13. Roger C. Y. Chen & Chen-Hsun Lee, 2017. "The influence of CSR on firm value: an application of panel smooth transition regression on Taiwan," Applied Economics, Taylor & Francis Journals, vol. 49(34), pages 3422-3434, July.
    14. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1033-1082, Elsevier.
    15. Waymond Rodgers & Hiu Choy & Andrés Guiral, 2013. "Do Investors Value a Firm’s Commitment to Social Activities?," Journal of Business Ethics, Springer, vol. 114(4), pages 607-623, June.
    16. Tsai, Yuan-Hui & Lin, Chieh-Peng & Ma, Hwa-Chun & Wang, Rong-Tsu, 2015. "Modeling corporate social performance and job pursuit intention: Forecasting the job change of professionals in technology industry," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 14-21.
    17. Arnold, Denis G. & Amato, Louis H. & Troyer, Jennifer L. & Stewart, Oscar Jerome, 2022. "Innovation and misconduct in the pharmaceutical industry," Journal of Business Research, Elsevier, vol. 144(C), pages 1052-1063.
    18. Myeongju Lee & Hyunok Kim, 2017. "Exploring the Organizational Culture’s Moderating Role of Effects of Corporate Social Responsibility (CSR) on Firm Performance: Focused on Corporate Contributions in Korea," Sustainability, MDPI, vol. 9(10), pages 1-18, October.
    19. Bongani Munkuli & Renee Horne, 2018. "Financial Markets Value Reputation for Corporate Social Responsibility (CSR) – A Study of the South African Mining Sector," Africagrowth Agenda, Africagrowth Institute, vol. 15(2), pages 17-22.
    20. Czarnitzki, Dirk, 2003. "Extent and Evolution of the Productivity Gap in Eastern Germany," ZEW Discussion Papers 03-25, ZEW - Leibniz Centre for European Economic Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:31:y:2009:i:1:p:56-63. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.