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Financial performance and reviews of corporate social responsibility reports

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  • Orhan Akisik
  • Graham Gal

Abstract

The purpose of this study is to examine the relationship between financial performance and reviews—self, Global Reporting Initiative (GRI), and third party—of corporate social responsibility (CSR) reports provided by North American firms over the period from 2006 to 2012. Using data obtained from the Compustat North America and the GRI websites, the results indicate that reviews of CSR reports are significantly related to certain short and long-term measures of financial performance. In addition, for firms in particular industries; mining, chemical, and petroleum, third party review is significantly related to financial performance. Moreover, we find that the effect of sales, leverage, and growth on financial performance is influenced by CSR reviews. Conclusions drawn from this study indicate that there is a relationship between financial performance and reviews of CSR reports. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Orhan Akisik & Graham Gal, 2014. "Financial performance and reviews of corporate social responsibility reports," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 25(3), pages 259-288, December.
    • Handle: RePEc:spr:mathme:v:25:y:2014:i:3:p:259-288
    DOI: 10.1007/s00187-014-0198-2
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    Cited by:

    1. Gerda Barauskaite & Dalia Streimikiene, 2021. "Corporate social responsibility and financial performance of companies: The puzzle of concepts, definitions and assessment methods," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 278-287, January.
    2. Frecea Georgiana-Loredana, 2018. "Legal or Discretionary CSR: The Directive 2014/95/EU Analysis," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 17-21, July.
    3. Hong Yuh Ching & Fábio Gerab & Thiago Henrique Toste, 2017. "The Quality of Sustainability Reports and Corporate Financial Performance: Evidence From Brazilian Listed Companies," SAGE Open, , vol. 7(2), pages 21582440177, June.
    4. Kofi Mintah Oware & Harshitha Moulya & Thathaiah Mallikarjunappa, 2024. "Corporate social responsibility assurance, board characteristics and social performance disclosure. Evidence of listed firms in India," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 1707-1721, April.
    5. Meltem Kılıç & Hasan Emin Gurler & Ahmet Kaya & Chang Won Lee, 2022. "The Impact of Sustainability Performance on Financial Performance: Does Firm Size Matter? Evidence from Turkey and South Korea," Sustainability, MDPI, vol. 14(24), pages 1-19, December.
    6. Graham Gal & Orhan Akisik, 2020. "The impact of internal control, external assurance, and integrated reports on market value," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1227-1240, May.
    7. Juan Andres Bernal‐Conesa & Carmen de Nieves Nieto & Antonio Juan Briones‐Peñalver, 2017. "CSR Strategy in Technology Companies: Its Influence on Performance, Competitiveness and Sustainability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(2), pages 96-107, March.
    8. Julien Lachuer & Sami Ben Jabeur, 2022. "Explainable artificial intelligence modeling for corporate social responsibility and financial performance," Journal of Asset Management, Palgrave Macmillan, vol. 23(7), pages 619-630, December.
    9. Natalia Kelchevskaya & Ilia Chernenko & Ekaterina Popova, 2017. "The Impact of Corporate Social Responsibility on the Investment Attractiveness of the Russian Companies," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 157-169.

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    More about this item

    Keywords

    Financial performance; Corporate social responsibility; Reviews of corporate social responsibility reports; M40; M41; M42;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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