Corporate social responsibility and firm performance: a threshold analysis of European firms

A. Hakimi, Rim Boussaada, Majdi Karmani
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Abstract

PurposeThis paper aims to investigate the reciprocal nonlinear relationship between corporate social responsibility (CSR) and firm performance (FP).Design/methodology/approachThe authors used a sample of 814 European firms over the period 2008–2017. The Panel Smooth Transition Regression (PSTR) model was performed as an econometric approach.FindingsFirstly, results show a threshold effect in the CSR–FP relationships within the two directions. More specifically, the authors found that firms are more likely to engage in CSR by surpassing a threshold of 1.231% for return on assets (ROA) and 0.821% for Tobin’s Q ratio. Secondly, the authors also found that the impact of CSR on FP is positive and significant only if the environment, social and governance score surpasses the threshold of 56.780% when the dependent variable is ROA and 41.02% when Tobin’s Q ratio measures performance.Research limitations/implicationsA significant part of the literature supports the linear relationship between CSR and FP from the unique direction (CSR → FP). This study comes to fill this gap by assessing the possible nonlinear relationship. In addition, this nonlinear relationship is tested under the two directions. Therefore, defining the threshold of FP that allows companies to engage in CSR, on the one hand, and the threshold of engagement in CSR that improves FP, on the other hand, could be an exciting topic.Practical implicationsTo get the full benefit from CSR effects, firms should be with better financial performance to be socially responsible.Originality/valueTo the best of our knowledge, few studies have explored the nonlinear relationship between CSR and FP. In addition, this study raises the question of whether this relation is causal. The authors assess the two nonlinear relationships between CSR ? FP and FP ? CSR by determining the optimal thresholds.
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企业社会责任与企业绩效:欧洲企业的门槛分析
目的研究企业社会责任(CSR)与企业绩效(FP)之间的非线性互反关系。设计/方法/方法作者使用了2008-2017年期间814家欧洲公司的样本。面板平滑过渡回归(PSTR)模型作为计量经济学方法进行。研究发现:首先,两个方向的CSR-FP关系存在阈值效应。更具体地说,作者发现,当企业的资产回报率(ROA)超过1.231%、托宾Q值超过0.821%时,企业更有可能参与企业社会责任。其次,作者还发现,当环境、社会和治理得分超过因变量ROA的56.780%和托宾Q比衡量绩效的41.02%的阈值时,企业社会责任对FP的影响是正的且显著的。相当一部分文献从独特的方向(CSR→FP)支持CSR与FP之间的线性关系。本研究通过评估可能的非线性关系来填补这一空白。此外,在两个方向下对这种非线性关系进行了检验。因此,定义一方面允许企业参与企业社会责任的企业社会责任门槛,另一方面提高企业社会责任的企业社会责任门槛,可能是一个令人兴奋的话题。为了充分发挥企业社会责任效应的效益,企业应该提高财务绩效来承担社会责任。据我们所知,很少有研究探讨企业社会责任与企业绩效之间的非线性关系。此外,本研究还提出了这种关系是否存在因果关系的问题。作者评估了CSR和CSR之间的两种非线性关系。FP和FP ?通过确定最优阈值来实现CSR。
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来源期刊
CiteScore
6.90
自引率
0.00%
发文量
21
审稿时长
24 weeks
期刊介绍: European Journal of Management and Business Economics is interested in the publication and diffusion of articles of rigorous theoretical, methodological or empirical research associated with the areas of business economics, including strategy, finance, management, marketing, organisation, human resources, operations, and corporate governance, and tourism. The journal aims to attract original knowledge based on academic rigour and of relevance for academics, researchers, professionals, and/or public decision-makers.
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