The relationship between corporate social responsibility and firm performance: evidence from Malaysia

Corporate Social Responsibility (CSR) has been an important topic in accounting research. Despite extensive studies on CSR activities in Malaysia, studies that investigated the nature of CSR activities in relation to firm financial performance still limited. Thus, this research investigates the rela...

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Main Authors: Wan Yusoff, Wan Fauziah, Adamu, Muhammad Sani
Format: Article
Language:English
Published: Medwell Journals 2016
Subjects:
Online Access:http://eprints.uthm.edu.my/4246/
http://eprints.uthm.edu.my/4246/1/AJ%202016%20%2827%29.pdf
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author Wan Yusoff, Wan Fauziah
Adamu, Muhammad Sani
author_facet Wan Yusoff, Wan Fauziah
Adamu, Muhammad Sani
author_sort Wan Yusoff, Wan Fauziah
building UTHM Institutional Repository
collection Online Access
description Corporate Social Responsibility (CSR) has been an important topic in accounting research. Despite extensive studies on CSR activities in Malaysia, studies that investigated the nature of CSR activities in relation to firm financial performance still limited. Thus, this research investigates the relationship between CSR activities and firm financial performance of Malaysian public listed companies. This study relied on secondary data obtained through content analysis of published company's annual reports for the year 2009-2013. Based on purposive sampling method, this study covered the assessment of the top one hundred companies in Malaysia whose names and shares were quoted in Malaysia stock exchange (Bursa Malaysia). Based on literature, four independent variables (environment, community, workplace and marketplace) and two dependent variables (Earning Per Share (EPS) and Return on Equity (ROE)) have been chosen in this study. Data were analyzed and interpreted using SPSS specifically Pearson's correlation to analyses the relationship between CSR activities and firm financial performance. This study discovered that most of the relationship between four CSR activities (environmental, community, marketplace and workplace) with financial performance (ROA and ROE) were positive. It can be concluded that Malaysian top 100 companies that actively involved in the four CSR activities are able to enhance their financial performance. It is imply that sound financial management can effectively be achieved through appropriate CSR practice that leads to a considerable economic development. Companies' performance would improve by adopting this appropriate recommendation for enhancing good CSR practice.
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spelling uthm-42462021-12-01T07:37:35Z http://eprints.uthm.edu.my/4246/ The relationship between corporate social responsibility and firm performance: evidence from Malaysia Wan Yusoff, Wan Fauziah Adamu, Muhammad Sani HF5549-5549.5 Personnel management. Employment management Corporate Social Responsibility (CSR) has been an important topic in accounting research. Despite extensive studies on CSR activities in Malaysia, studies that investigated the nature of CSR activities in relation to firm financial performance still limited. Thus, this research investigates the relationship between CSR activities and firm financial performance of Malaysian public listed companies. This study relied on secondary data obtained through content analysis of published company's annual reports for the year 2009-2013. Based on purposive sampling method, this study covered the assessment of the top one hundred companies in Malaysia whose names and shares were quoted in Malaysia stock exchange (Bursa Malaysia). Based on literature, four independent variables (environment, community, workplace and marketplace) and two dependent variables (Earning Per Share (EPS) and Return on Equity (ROE)) have been chosen in this study. Data were analyzed and interpreted using SPSS specifically Pearson's correlation to analyses the relationship between CSR activities and firm financial performance. This study discovered that most of the relationship between four CSR activities (environmental, community, marketplace and workplace) with financial performance (ROA and ROE) were positive. It can be concluded that Malaysian top 100 companies that actively involved in the four CSR activities are able to enhance their financial performance. It is imply that sound financial management can effectively be achieved through appropriate CSR practice that leads to a considerable economic development. Companies' performance would improve by adopting this appropriate recommendation for enhancing good CSR practice. Medwell Journals 2016 Article PeerReviewed text en http://eprints.uthm.edu.my/4246/1/AJ%202016%20%2827%29.pdf Wan Yusoff, Wan Fauziah and Adamu, Muhammad Sani (2016) The relationship between corporate social responsibility and firm performance: evidence from Malaysia. International Business Management, 10 (4). pp. 345-351. ISSN 1993-5250 https://doi.org/10.3923/ibm.2016.345.351
spellingShingle HF5549-5549.5 Personnel management. Employment management
Wan Yusoff, Wan Fauziah
Adamu, Muhammad Sani
The relationship between corporate social responsibility and firm performance: evidence from Malaysia
title The relationship between corporate social responsibility and firm performance: evidence from Malaysia
title_full The relationship between corporate social responsibility and firm performance: evidence from Malaysia
title_fullStr The relationship between corporate social responsibility and firm performance: evidence from Malaysia
title_full_unstemmed The relationship between corporate social responsibility and firm performance: evidence from Malaysia
title_short The relationship between corporate social responsibility and firm performance: evidence from Malaysia
title_sort relationship between corporate social responsibility and firm performance: evidence from malaysia
topic HF5549-5549.5 Personnel management. Employment management
url http://eprints.uthm.edu.my/4246/
http://eprints.uthm.edu.my/4246/
http://eprints.uthm.edu.my/4246/1/AJ%202016%20%2827%29.pdf