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Corporate Social Responsibility and Firm Performance: Evidence from an Emerging Market

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  • Elif Akben Selcuk
  • Halil Kiymaz

Abstract

This study focuses on the relationship between firm performance and corporate social responsibility (CSR) of firms listed on Borsa Istanbul during the period of 2009-2011. We use content analysis of annual reports/websites of Turkish firms for any socially responsible activities. We find a negative relationship between CSR and financial performance, meaning that firms which disclose more information about CSR initiatives in their annual reports have a lower return on assets. After controlling for debt and size of the firms, we further find that while highly levered firms are less profitable, larger firms have higher profits. Finally, we do not find any significant relationships between research and development expenditures and financial performance.

Suggested Citation

  • Elif Akben Selcuk & Halil Kiymaz, 2017. "Corporate Social Responsibility and Firm Performance: Evidence from an Emerging Market," Accounting and Finance Research, Sciedu Press, vol. 6(4), pages 1-42, Novebmer.
    • Handle: RePEc:jfr:afr111:v:6:y:2017:i:4:p:42
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    References listed on IDEAS

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    1. Sandra A. Waddock & Samuel B. Graves, 1997. "The Corporate Social Performance–Financial Performance Link," Strategic Management Journal, Wiley Blackwell, vol. 18(4), pages 303-319, April.
    2. Clyde Eiríkur Hull & Sandra Rothenberg, 2008. "Firm performance: the interactions of corporate social performance with innovation and industry differentiation," Strategic Management Journal, Wiley Blackwell, vol. 29(7), pages 781-789, July.
    3. Hughes, Susan B. & Anderson, Allison & Golden, Sarah, 2001. "Corporate environmental disclosures: are they useful in determining environmental performance?," Journal of Accounting and Public Policy, Elsevier, vol. 20(3), pages 217-240.
    4. Güler Aras & Aslı Aybars & Ozlem Kutlu, 2010. "Managing corporate performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 59(3), pages 229-254, March.
    5. Duygu Turker, 2009. "Measuring Corporate Social Responsibility: A Scale Development Study," Journal of Business Ethics, Springer, vol. 85(4), pages 411-427, April.
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    Cited by:

    1. Dr. Muhammad Siddique & Dr. Muhammad Sarfraz Khan & Dr. Kamran Ali & Zunaira Maqsood, 2023. "Impact of Corporate Social Responsibility on Firm Financial Performance: Evidence from Insurance Sector of Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(3), pages 1-14.

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    More about this item

    JEL classification:

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

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