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Corporate Social Responsibility and Firm Value Protection

Author

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  • Daniel Ogachi

    (Doctoral School of Economics and Regional Sciences, Szent Istvan University, 2100 Gödöllő, Hungary)

  • Zeman Zoltan

    (Faculty of Economics and Social Sciences, Szent Istvan University, 2100 Gödöllő, Hungary)

Abstract

The conception of Corporate Social Responsibility has continued to gain a lengthy discussion in all aspects of corporate finance with a particular focus on its contributing to financial performance. Despite its prominence globally, many companies have not embraced the concept, as most of them have remained doubtful about its contribution to corporate financial performance. Several companies have digressed the idea to merely an aspect of charity and cost instead of cost reduction and market creation. The fixed-effect model of panel data analysis was applied for the study period from 2010 to 2019 to measure relationships on CSR’s effect on the financial performance of listed companies in Kenya. The study used panel data for the years 2010–2019. The research used trend analysis for ten years to analyse data using canonical correlations, Logistic Regression analysis and ARIMA models to establish relationships among the variables of the study. Our results offer new evidence on the linearity effect of CSR on financial performance suggest that Corporate Social Responsibilities activities are very vital influencers of firm value, as they have a positive influence on the financial performance of companies.

Suggested Citation

  • Daniel Ogachi & Zeman Zoltan, 2020. "Corporate Social Responsibility and Firm Value Protection," IJFS, MDPI, vol. 8(4), pages 1-22, November.
    • Handle: RePEc:gam:jijfss:v:8:y:2020:i:4:p:72-:d:447064
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    References listed on IDEAS

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