The heterogeneous effects of CSR dimensions on financial performance -a new approach for CSR measurement

Su, R., Liu, C. ORCID: 0000-0003-3770-4821 and Teng, W. ORCID: 0000-0003-1326-0509, 2020. The heterogeneous effects of CSR dimensions on financial performance -a new approach for CSR measurement. Journal of Business Economics and Management, 21 (4), pp. 987-1009. ISSN 2029-4433

39637_a717_Liu.pdf - Published version

Download (420kB) | Preview


This paper investigates the differential effects of corporate social responsibility (CSR) dimensions on corporate financial performance (CFP) across sectors in China. This research uses a unique data set provided by China Stock Market and Accounting Research (CSMAR), showing expenditure on CSR programs from 568 Chinese publicly traded firm-year observations from 2008 to 2017. Compared to previous studies using scores produced by extra-financial rating agencies, this research quantifies CSR efforts by corporate expenditure on CSR practices, which offers quantitative and precise information in explaining the CSR-CFP link. The results show that the dimension of the environment has negative effects on financial performance in capital-intensive manufacturing industries. The impact of HR expenditure on CFP is negative in the tertiary sector and resource-intensive manufacturing industries. However, CSR investments in the community are positively related to financial performance in resource-intensive industries and other secondary sector (mining, construction, and utilities). Firms, in general, could gain benefits when spending more on business and financial stakeholders.

Item Type: Journal article
Publication Title: Journal of Business Economics and Management
Creators: Su, R., Liu, C. and Teng, W.
Publisher: Taylor & Francis
Date: 20 May 2020
Volume: 21
Number: 4
ISSN: 2029-4433
Rights: Copyright © 2020 The Author(s). Published by VGTU Press. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons. org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Divisions: Schools > Nottingham Business School
Record created by: Linda Sullivan
Date Added: 15 Apr 2020 15:32
Last Modified: 31 May 2021 15:19

Actions (login required)

Edit View Edit View


Views per month over past year


Downloads per month over past year