The Effect of Corporate Social Responsibility Activities on Financial Performance in Medical Institution

Abstract

The purpose of this study is to analyze the relationship between corporate social responsibility activities and financial performance of medical corporations using financial statement data. There are various research results analyzing the effect of social responsibility activities of for-profit corporations on financial performance. Many of the preceding studies claim that there is a positive (＋) relationship between corporate social responsibility activities and financial performance. However, results that are in a negative (-) relationship or are not related have also been reported. so the debate on whether there is a causal relationship between the two variables keeps going on.. On the other hand, there are few prior studies on the relationship between social responsibility and financial performance of non-profit corporations. For analysis, financial statements data from 2016 to 2020 of domestic general hospitals were used. Social responsibility activities substituted by social work expenses and financial performance substituted by total asset return have a significant negative (-) relationship, which can be interpreted as having a negative impact on financial performance as social responsibility activities are increased. The results of this study are meaningful in that they for the first time analyzed the impact of social responsibility activities on financial performance using accounting data at a condition when research on social responsibility activities of medical institutions is limited.