Impact of positive and negative corporate social responsibility on corporate financial performance and idiosyncratic risk

Despite growing interest for corporate social responsibility (CSR) in the literature, the relationship between CSR activities and idiosyncratic risk of firms, one of the critical components in evaluating shareholder value, has been a topic of scarce examination. Further, the moderating role of firm...

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Main Authors: Lin, Woon Leong, Ho, Jo Ann, Ng, Siew Imm, Lee, Chin
Format: Conference or Workshop Item
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2017
Online Access:http://psasir.upm.edu.my/id/eprint/58739/
http://psasir.upm.edu.my/id/eprint/58739/1/24-WOON_LEONG_LIN.pdf
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author Lin, Woon Leong
Ho, Jo Ann
Ng, Siew Imm
Lee, Chin
author_facet Lin, Woon Leong
Ho, Jo Ann
Ng, Siew Imm
Lee, Chin
author_sort Lin, Woon Leong
building UPM Institutional Repository
collection Online Access
description Despite growing interest for corporate social responsibility (CSR) in the literature, the relationship between CSR activities and idiosyncratic risk of firms, one of the critical components in evaluating shareholder value, has been a topic of scarce examination. Further, the moderating role of firm size on the link between CSR and idiosyncratic risk has not been studied. Existing research on the financial implications of CSR for firms has predominantly focused on positive aspects of CSR, over-looking that companies also undertake actions and initiatives that qualify as corporate social irresponsibility or negative CSR. This study dichotomizes CSR activities into two dimensions, socially responsible activities (positive CSR) and socially irresponsible activities (negative CSR), to scrutinize the distinct effects of the two extents. The authors demonstrate how positive and negative CSR can influences corporate financial performance (CFP) and idiosyncratic risk of firms and discuss the role of firm size as a moderator in the relationship. The proposed hypothesis for the framework and its theoretical justification are discussed in this paper.
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spelling upm-587392018-02-01T03:45:33Z http://psasir.upm.edu.my/id/eprint/58739/ Impact of positive and negative corporate social responsibility on corporate financial performance and idiosyncratic risk Lin, Woon Leong Ho, Jo Ann Ng, Siew Imm Lee, Chin Despite growing interest for corporate social responsibility (CSR) in the literature, the relationship between CSR activities and idiosyncratic risk of firms, one of the critical components in evaluating shareholder value, has been a topic of scarce examination. Further, the moderating role of firm size on the link between CSR and idiosyncratic risk has not been studied. Existing research on the financial implications of CSR for firms has predominantly focused on positive aspects of CSR, over-looking that companies also undertake actions and initiatives that qualify as corporate social irresponsibility or negative CSR. This study dichotomizes CSR activities into two dimensions, socially responsible activities (positive CSR) and socially irresponsible activities (negative CSR), to scrutinize the distinct effects of the two extents. The authors demonstrate how positive and negative CSR can influences corporate financial performance (CFP) and idiosyncratic risk of firms and discuss the role of firm size as a moderator in the relationship. The proposed hypothesis for the framework and its theoretical justification are discussed in this paper. Faculty of Economics and Management, Universiti Putra Malaysia 2017 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/58739/1/24-WOON_LEONG_LIN.pdf Lin, Woon Leong and Ho, Jo Ann and Ng, Siew Imm and Lee, Chin (2017) Impact of positive and negative corporate social responsibility on corporate financial performance and idiosyncratic risk. In: Global Conference on Business and Economics Research (GCBER) 2017, 14-15 Aug. 2017, Universiti Putra Malaysia, Serdang, Selangor. (pp. 471-476). http://www.econ.upm.edu.my/upload/dokumen/20171011154733060-_WOON_LEONG_LIN.pdf
spellingShingle Lin, Woon Leong
Ho, Jo Ann
Ng, Siew Imm
Lee, Chin
Impact of positive and negative corporate social responsibility on corporate financial performance and idiosyncratic risk
title Impact of positive and negative corporate social responsibility on corporate financial performance and idiosyncratic risk
title_full Impact of positive and negative corporate social responsibility on corporate financial performance and idiosyncratic risk
title_fullStr Impact of positive and negative corporate social responsibility on corporate financial performance and idiosyncratic risk
title_full_unstemmed Impact of positive and negative corporate social responsibility on corporate financial performance and idiosyncratic risk
title_short Impact of positive and negative corporate social responsibility on corporate financial performance and idiosyncratic risk
title_sort impact of positive and negative corporate social responsibility on corporate financial performance and idiosyncratic risk
url http://psasir.upm.edu.my/id/eprint/58739/
http://psasir.upm.edu.my/id/eprint/58739/
http://psasir.upm.edu.my/id/eprint/58739/1/24-WOON_LEONG_LIN.pdf