The Effects of Corporate Social Responsibility on Corporate Financial Performance of Chinese Listed Manufacturing Companies

CSR practice has become a worldwide phenomenon that has no longer been limited to traditional individual enterprises. It is an increasingly important part of corporate governance strategy in listed companies. This paper investigates the impacts of CSR on CFP of Chinese listed manufacturing companies...

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Main Author: Li, Weimin
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2019
Online Access:https://eprints.nottingham.ac.uk/58241/
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author Li, Weimin
author_facet Li, Weimin
author_sort Li, Weimin
building Nottingham Research Data Repository
collection Online Access
description CSR practice has become a worldwide phenomenon that has no longer been limited to traditional individual enterprises. It is an increasingly important part of corporate governance strategy in listed companies. This paper investigates the impacts of CSR on CFP of Chinese listed manufacturing companies by using the panel data from 145 listed manufacturing companies between 2013 and 2017 with the fixed effects models to examine the CSR-CFP link. Based on stakeholder theory, the study used the total CSR index and the score of five different sub-level by HEXUN website. The five different sub-level are shareholders, employees, suppliers and customers, environmental, social scores. In addition, the CFP of this study combined the return on asset (ROA) and Tobin's Q for financial performance measurement, which is a combination of accounting-based performance and market-based performance. The findings are that the level of CSR and enterprise’s performance shows a positive correlation. Moreover, the study further explored the impact of five sub-criteria on CFP. These results are partially consistent with previous findings. In particular, the environmental responsibility performance scores have a negative relationship with CFP, while shareholder responsibility, employee responsibility, supplier and customer responsibility all exhibit a positive correlation with financial performance. Meanwhile, the study also found that the relationship between public responsibility and FP is insignificant. In sum, this study suggests that every company should take CSR practices as a competitive strategy in the market and take it into the charter of corporate governance. Keywords: corporate social responsibility; corporate financial performance; Chinese listed manufacturing companies
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spelling nottingham-582412022-12-07T10:27:49Z https://eprints.nottingham.ac.uk/58241/ The Effects of Corporate Social Responsibility on Corporate Financial Performance of Chinese Listed Manufacturing Companies Li, Weimin CSR practice has become a worldwide phenomenon that has no longer been limited to traditional individual enterprises. It is an increasingly important part of corporate governance strategy in listed companies. This paper investigates the impacts of CSR on CFP of Chinese listed manufacturing companies by using the panel data from 145 listed manufacturing companies between 2013 and 2017 with the fixed effects models to examine the CSR-CFP link. Based on stakeholder theory, the study used the total CSR index and the score of five different sub-level by HEXUN website. The five different sub-level are shareholders, employees, suppliers and customers, environmental, social scores. In addition, the CFP of this study combined the return on asset (ROA) and Tobin's Q for financial performance measurement, which is a combination of accounting-based performance and market-based performance. The findings are that the level of CSR and enterprise’s performance shows a positive correlation. Moreover, the study further explored the impact of five sub-criteria on CFP. These results are partially consistent with previous findings. In particular, the environmental responsibility performance scores have a negative relationship with CFP, while shareholder responsibility, employee responsibility, supplier and customer responsibility all exhibit a positive correlation with financial performance. Meanwhile, the study also found that the relationship between public responsibility and FP is insignificant. In sum, this study suggests that every company should take CSR practices as a competitive strategy in the market and take it into the charter of corporate governance. Keywords: corporate social responsibility; corporate financial performance; Chinese listed manufacturing companies 2019-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/58241/1/4337034_N14170_The%20Effects%20of%20Corporate%20Social%20Responsibility%20on%20Corporate%20Financial%20Performance%20of%20Chinese%20Listed%20Manufacturing%20Companies.pdf Li, Weimin (2019) The Effects of Corporate Social Responsibility on Corporate Financial Performance of Chinese Listed Manufacturing Companies. [Dissertation (University of Nottingham only)]
spellingShingle Li, Weimin
The Effects of Corporate Social Responsibility on Corporate Financial Performance of Chinese Listed Manufacturing Companies
title The Effects of Corporate Social Responsibility on Corporate Financial Performance of Chinese Listed Manufacturing Companies
title_full The Effects of Corporate Social Responsibility on Corporate Financial Performance of Chinese Listed Manufacturing Companies
title_fullStr The Effects of Corporate Social Responsibility on Corporate Financial Performance of Chinese Listed Manufacturing Companies
title_full_unstemmed The Effects of Corporate Social Responsibility on Corporate Financial Performance of Chinese Listed Manufacturing Companies
title_short The Effects of Corporate Social Responsibility on Corporate Financial Performance of Chinese Listed Manufacturing Companies
title_sort effects of corporate social responsibility on corporate financial performance of chinese listed manufacturing companies
url https://eprints.nottingham.ac.uk/58241/