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What
corporate social responsibility reporting adds to financial
return?
Jean-Marie Cardebat and
Nicolas Sirven
1LARE-efi,
Université Bordeaux IV and BEM – Bordeaux Management School,
France.
2VHI
- St Edmund’s College, University of Cambridge, England.
*Corresponding
author.
E-mail:
ns399@cam.ac.uk
. Tel: +44 (0) 1223 728 763. Fax: +44 (0) 1223 762 822.
Accepted 24
January, 2010 |
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Using a Capital
Asset Pricing Model (CAPM) for panel data, this study
investigates the influence of corporate social
responsibility (CSR) on financial performance, for 154
European firms between 2000 and 2008. The CSR index reveals
whether or not the firm published a social report for year
t. Statistical evidence shows that this index is
negatively and significantly associated with the expected
return on the capital asset, even after (i) controlling for
size, sector and country specific effect or PER, and (ii)
correcting for size-CSR multicolinearity bias.
Key words:
Corporate social responsibility, financial performance,
panel data.
JEL
Classification:
M14, G12, C33. |
