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The Impact of Corporate Social Responsibility on Firm’s Financial Performance in Malaysia

Author

Listed:
  • Dilashenyi Devi Selvarajah
  • Uma Murthy
  • Mathavi Massilamani

Abstract

The present research aims at investigating the impact of CSR on firm’s financial performance in Malaysia. Based on gaps in extant literature, the current study hypothesizes that four (4) independent variables comprising business risk, company reputation, employee engagement and stakeholder concern will exert statistically significant influences on the dependent variable, firm’s financial performance. The research employs a quantitative research approach whereby a sample 153 respondents were collected using a stratified random sampling technique. Employing SPSS software, multiple linear regression analysis was carried out. The results of multiple regression revealed that out of the four (4) hypotheses of the research, three (3) were supported whilst one (1) was not. In particular, it was shown that business risk, company reputation and stakeholder concern exert statistically significant influences on firm’s financial performance. However, there was no enough evidence to support the claim that employee engage can significantly influence firm’s financial performance. Several implications from the research were further discussed and elaborated.

Suggested Citation

  • Dilashenyi Devi Selvarajah & Uma Murthy & Mathavi Massilamani, 2018. "The Impact of Corporate Social Responsibility on Firm’s Financial Performance in Malaysia," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(3), pages 220-220, February.
    • Handle: RePEc:ibn:ijbmjn:v:13:y:2018:i:3:p:220
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    References listed on IDEAS

    as
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    5. Zulhamri Abdullah & Yuhanis Abdul Aziz, 2013. "Institutionalizing corporate social responsibility: effects on corporate reputation, culture, and legitimacy in Malaysia," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 9(3), pages 344-361, July.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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