Corporate social responsibility and corporate performance: a quantile regression approach

Hsin-Hong Kang, Shu Bing Liu

Research output: Contribution to journalArticle

19 Citations (Scopus)

Abstract

This paper investigates the impact of corporate social responsibility activities on corporate performance. In view of the inconsistent empirical findings in the literature, and the limitations of least squares regressions, we adopt a quantile regression method to fill this gap in the literature. An important finding is that the sensitivity of a company’s performance to its engagement in corporate social responsibility activities does not vary with the quantile location of the firm’s performance level, and the engagement in corporate social responsibility activities has a significant positive relation with corporate performance across all quantiles. This study argues that undertaking corporate social responsibility leads to greater financial returns than the related costs. Therefore, this study concludes that engaging in corporate social responsibility is beneficial for firms, and thus worth implementing.

Original languageEnglish
Pages (from-to)3311-3325
Number of pages15
JournalQuality and Quantity
Volume48
Issue number6
DOIs
Publication statusPublished - 2014 Oct 31

Fingerprint

Quantile Regression
social responsibility
regression
Quantile
performance
Least Squares Regression
firm
Inconsistent
Vary
Costs
costs
Engagement
Business

All Science Journal Classification (ASJC) codes

  • Statistics and Probability
  • Social Sciences(all)

Cite this

@article{2194bceecf0747b6a97000c4668b65d7,
title = "Corporate social responsibility and corporate performance: a quantile regression approach",
abstract = "This paper investigates the impact of corporate social responsibility activities on corporate performance. In view of the inconsistent empirical findings in the literature, and the limitations of least squares regressions, we adopt a quantile regression method to fill this gap in the literature. An important finding is that the sensitivity of a company’s performance to its engagement in corporate social responsibility activities does not vary with the quantile location of the firm’s performance level, and the engagement in corporate social responsibility activities has a significant positive relation with corporate performance across all quantiles. This study argues that undertaking corporate social responsibility leads to greater financial returns than the related costs. Therefore, this study concludes that engaging in corporate social responsibility is beneficial for firms, and thus worth implementing.",
author = "Hsin-Hong Kang and Liu, {Shu Bing}",
year = "2014",
month = "10",
day = "31",
doi = "10.1007/s11135-013-9958-6",
language = "English",
volume = "48",
pages = "3311--3325",
journal = "Quality and Quantity",
issn = "0033-5177",
publisher = "Springer Netherlands",
number = "6",

}

Corporate social responsibility and corporate performance : a quantile regression approach. / Kang, Hsin-Hong; Liu, Shu Bing.

In: Quality and Quantity, Vol. 48, No. 6, 31.10.2014, p. 3311-3325.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Corporate social responsibility and corporate performance

T2 - a quantile regression approach

AU - Kang, Hsin-Hong

AU - Liu, Shu Bing

PY - 2014/10/31

Y1 - 2014/10/31

N2 - This paper investigates the impact of corporate social responsibility activities on corporate performance. In view of the inconsistent empirical findings in the literature, and the limitations of least squares regressions, we adopt a quantile regression method to fill this gap in the literature. An important finding is that the sensitivity of a company’s performance to its engagement in corporate social responsibility activities does not vary with the quantile location of the firm’s performance level, and the engagement in corporate social responsibility activities has a significant positive relation with corporate performance across all quantiles. This study argues that undertaking corporate social responsibility leads to greater financial returns than the related costs. Therefore, this study concludes that engaging in corporate social responsibility is beneficial for firms, and thus worth implementing.

AB - This paper investigates the impact of corporate social responsibility activities on corporate performance. In view of the inconsistent empirical findings in the literature, and the limitations of least squares regressions, we adopt a quantile regression method to fill this gap in the literature. An important finding is that the sensitivity of a company’s performance to its engagement in corporate social responsibility activities does not vary with the quantile location of the firm’s performance level, and the engagement in corporate social responsibility activities has a significant positive relation with corporate performance across all quantiles. This study argues that undertaking corporate social responsibility leads to greater financial returns than the related costs. Therefore, this study concludes that engaging in corporate social responsibility is beneficial for firms, and thus worth implementing.

UR - http://www.scopus.com/inward/record.url?scp=84887953007&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84887953007&partnerID=8YFLogxK

U2 - 10.1007/s11135-013-9958-6

DO - 10.1007/s11135-013-9958-6

M3 - Article

AN - SCOPUS:84887953007

VL - 48

SP - 3311

EP - 3325

JO - Quality and Quantity

JF - Quality and Quantity

SN - 0033-5177

IS - 6

ER -