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Analysis Of The Impact Of Social Performance On Financial Performance

Author

Listed:
  • Raluca ANDREEV

    (Stefan cel Mare University of Suceava, 720229, Romania)

  • Mihaela TULVINSCHI

    (Stefan cel Mare University of Suceava, 720229, Romania)

  • Anamaria-Geanina MACOVEI

    (Stefan cel Mare University of Suceava, 720229, Romania)

Abstract

Increasing competition and increasing stakeholder interest in the impact of business activities on the environment raises the issue of the need for businesses to invest or focus on corporate social responsibility (CSR) activities. There are opposing views in the field of studies on the positive or negative influence of CSR activities on financial performance. This paper aims to establish whether the various components of social performance have a significant influence on the financial performance of the Top 6 pharmaceutical companies listed on the Bucharest Stock Exchange (BVB), over a period of analysis between 2011-2020. For this, a multiple linear regression model was used, and the results obtained showed that CSR activities positively and significantly influence financial performance, provided that the size criteria are met, which provides financial assurance for the successful completion of CSR actions. Based on the results obtained, pharmaceutical companies should continue to support CSR activities and provide the general public with better information on the actions taken so that they can be analyzed and measured in order to conduct more accurate research.

Suggested Citation

  • Raluca ANDREEV & Mihaela TULVINSCHI & Anamaria-Geanina MACOVEI, 2022. "Analysis Of The Impact Of Social Performance On Financial Performance," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 10(2), pages 59-65, June.
    • Handle: RePEc:scm:ejafbu:v:10:y:2022:i:2:p:59-65
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    References listed on IDEAS

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    1. Thomas Fischer & Angelika Sawczyn, 2013. "The relationship between corporate social performance and corporate financial performance and the role of innovation: evidence from German listed firms," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(1), pages 27-52, May.
    2. Sonia Boukattaya & Abdelwahed Omri, 2021. "Corporate Social Practices and Firm Financial Performance: Empirical Evidence from France," IJFS, MDPI, vol. 9(4), pages 1-17, September.
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    Cited by:

    1. Marius-Sorin Ciubotariu & Ana-Maria Sandulachi, 2023. "Conceptual Approaches In The Evolution Of Corporate Social Responsibility," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 11(2), pages 129-137, June.
    2. Angelica BUBOI (DANAILA) & Cristina Gabriela COSMULESE, 2023. "Effect of Market Capitalization on the Association between Firm Size and Corporative Performance of Listed Companies at Bucharest Stock Exchange in Romania," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(5), pages 815-825, December.
    3. Monica-Laura ZLATI & Cristina Gabriela COSMULESE, 2023. "Assessing the CFO'S Perspective on IFRS 15 Implementation," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 148-156.
    4. Grosu, Veronica & Cosmulese, Cristina Gabriela & Socoliuc, Marian & Ciubotariu, Marius-Sorin & Mihaila, Svetlana, 2023. "Testing accountants' perceptions of the digitization of the profession and profiling the future professional," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    5. Liliana Scutaru, 2023. "Csr, Sustainability Strategy And Company Performance," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 11(1), pages 53-62, February.

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