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Investigating the Relationship between the Social and Economic-financial Performance

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Listed:
  • Giovanni Vaia
  • Marco Bisogno
  • Aurelio Tommasetti

Abstract

Hundreds of studies have explored and measured financial returns related to social performance (Margolis and Walsh, 2003), with controversial results. In addition to these studies¡¯ outcomes, we found, in this body of literature, a lot of innovation in the integration and adaptation of financial analysis tools and models to the study of statistical relationships. In this paper, we investigate the relationship between corporate social performance and corporate financial (and economic) performance, using multiple measures of financial and social performance and by looking statistically at the movement of actual financial and social performance over time. We emphasize the worth of statistical analysis in traditional financial representations. Our findings show how ratio analysis and statistical cause-and-effect validation are not alternatives for developing the financial analysis of sustainability and reporting. We show, through constant testing and a double learning process, the critical relationship between the key factors of financial, economic and social performance.

Suggested Citation

  • Giovanni Vaia & Marco Bisogno & Aurelio Tommasetti, 2017. "Investigating the Relationship between the Social and Economic-financial Performance," Applied Finance and Accounting, Redfame publishing, vol. 3(1), pages 55-64, February.
    • Handle: RePEc:rfa:afajnl:v:3:y:2017:i:1:p:55-64
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    References listed on IDEAS

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    Cited by:

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    2. Derek Kruse & Kristie Briggs & Eric J. Neuman, 2022. "Mitigating endogeneity in corporate social responsibility research: An investigation using a neoclassical production function," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 3-15, January.

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    More about this item

    Keywords

    social performance; financial performance; corporate social responsibility;
    All these keywords.

    JEL classification:

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

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