Investigating the Impact of Corporate Social Responsibility Disclosure on Firm Financial Performance: Evidence from UK FTSE 250 Companies

Over the past 50 years, the relationship between corporate social responsibility and firm financial performance has been a popular subject for corporate governance, but the research findings always remain inconclusive. This dissertation attempt to analyze the impact of corporate social responsibilit...

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Main Author: WU, QIAN
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2020
Online Access:https://eprints.nottingham.ac.uk/61995/
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author WU, QIAN
author_facet WU, QIAN
author_sort WU, QIAN
building Nottingham Research Data Repository
collection Online Access
description Over the past 50 years, the relationship between corporate social responsibility and firm financial performance has been a popular subject for corporate governance, but the research findings always remain inconclusive. This dissertation attempt to analyze the impact of corporate social responsibility (CSR) disclosure on corporate financial performance (CFP) of UK FTSE 250 companies. Environmental, social and governance (ESG) scores are used to measure CSR disclosure, accounting profitability proxied by ROA and ROE and market value proxied by Tobin’s Q and P/E Ratio are used to measure firm financial performance. Data is obtained from Fame and Bloomberg for the years between 2011 and 2019. Multiple regression models, panel data estimators and correlation analysis are employed to examine the CSR-CFP relationship. The empirical results indicate that ESG disclosure has a significantly negative relationship with ROA and ROE. However, it is also found that ESG disclosure has a significantly positive effect on P/E ratio while has a positive but insignificant correlation with Tobin’s Q. Overall, it is concluded that ESG disclosure has a negative effect on accounting profitability and a partial positive effect on market value creation.
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spelling nottingham-619952022-12-21T12:57:20Z https://eprints.nottingham.ac.uk/61995/ Investigating the Impact of Corporate Social Responsibility Disclosure on Firm Financial Performance: Evidence from UK FTSE 250 Companies WU, QIAN Over the past 50 years, the relationship between corporate social responsibility and firm financial performance has been a popular subject for corporate governance, but the research findings always remain inconclusive. This dissertation attempt to analyze the impact of corporate social responsibility (CSR) disclosure on corporate financial performance (CFP) of UK FTSE 250 companies. Environmental, social and governance (ESG) scores are used to measure CSR disclosure, accounting profitability proxied by ROA and ROE and market value proxied by Tobin’s Q and P/E Ratio are used to measure firm financial performance. Data is obtained from Fame and Bloomberg for the years between 2011 and 2019. Multiple regression models, panel data estimators and correlation analysis are employed to examine the CSR-CFP relationship. The empirical results indicate that ESG disclosure has a significantly negative relationship with ROA and ROE. However, it is also found that ESG disclosure has a significantly positive effect on P/E ratio while has a positive but insignificant correlation with Tobin’s Q. Overall, it is concluded that ESG disclosure has a negative effect on accounting profitability and a partial positive effect on market value creation. 2020-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/61995/1/20208035%20BUSI4153%20Investigating%20the%20Impact%20of%20Corporate%20Social%20Responsibility%20Disclosure%20on%20Firm%20Financial%20Performance%20Evidence%20from%20UK%20FTSE%20250%20Companies.docx WU, QIAN (2020) Investigating the Impact of Corporate Social Responsibility Disclosure on Firm Financial Performance: Evidence from UK FTSE 250 Companies. [Dissertation (University of Nottingham only)]
spellingShingle WU, QIAN
Investigating the Impact of Corporate Social Responsibility Disclosure on Firm Financial Performance: Evidence from UK FTSE 250 Companies
title Investigating the Impact of Corporate Social Responsibility Disclosure on Firm Financial Performance: Evidence from UK FTSE 250 Companies
title_full Investigating the Impact of Corporate Social Responsibility Disclosure on Firm Financial Performance: Evidence from UK FTSE 250 Companies
title_fullStr Investigating the Impact of Corporate Social Responsibility Disclosure on Firm Financial Performance: Evidence from UK FTSE 250 Companies
title_full_unstemmed Investigating the Impact of Corporate Social Responsibility Disclosure on Firm Financial Performance: Evidence from UK FTSE 250 Companies
title_short Investigating the Impact of Corporate Social Responsibility Disclosure on Firm Financial Performance: Evidence from UK FTSE 250 Companies
title_sort investigating the impact of corporate social responsibility disclosure on firm financial performance: evidence from uk ftse 250 companies
url https://eprints.nottingham.ac.uk/61995/