Does firm size comfound the relationship between corporate social performance and firm financial performance?
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Business Ethics 33 (2):167 - 180 (2001)
There has been some theoretical and empirical debate that the positive relationship between corporate social performance (CSP) and firm financial performance (FFP) is spurious and in fact caused by a third factor, namely large firm size. This study examines this question by integrating three meta-analyses of more than two decades of research on (1) CSP and FFP, (2) firm size and CSP, and (3) firm size and FFP into one path-analytic model. The present study does not confirm size as a third factor which would confound the relationship between CSP and FFP. That is, even if firm size is controlled for across studies (comprising, on average, over 15 000 observations), CSP and FFP remain positively correlated, showing a "true-score" corrected path coefficient p of 0.37.
|Keywords||confounding variable corporate social performance firm financial performance firm size measurement error meta-analysis path analysis reliability coefficient sampling error study artifacts|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
Ran Zhang, Jigao Zhu, Heng Yue & Chunyan Zhu (2010). Corporate Philanthropic Giving, Advertising Intensity, and Industry Competition Level. Journal of Business Ethics 94 (1):39 - 52.
Stephen Brammer & Andrew Millington (2006). Firm Size, Organizational Visibility and Corporate Philanthropy: An Empirical Analysis. Business Ethics 15 (1):6–18.
Nuttaneeya Ann Torugsa, Wayne O'Donohue & Rob Hecker (2013). Proactive CSR: An Empirical Analysis of the Role of its Economic, Social and Environmental Dimensions on the Association Between Capabilities and Performance. [REVIEW] Journal of Business Ethics 115 (2):383-402.
Wenjing Li & Ran Zhang (2010). Corporate Social Responsibility, Ownership Structure, and Political Interference: Evidence From China. [REVIEW] Journal of Business Ethics 96 (4):631 - 645.
Ran Zhang, Zabihollah Rezaee & Jigao Zhu (2010). Corporate Philanthropic Disaster Response and Ownership Type: Evidence From Chinese Firms' Response to the Sichuan Earthquake. [REVIEW] Journal of Business Ethics 91 (1):51 - 63.
Similar books and articles
Philip L. Baird, Pinar Celikkol Geylani & Jeffrey A. Roberts (2012). Corporate Social and Financial Performance Re-Examined: Industry Effects in a Linear Mixed Model Analysis. [REVIEW] Journal of Business Ethics 109 (3):367-388.
Bernadette M. Ruf, Krishnamurty Muralidhar, Robert M. Brown, Jay J. Janney & Karen Paul (2001). An Empirical Investigation of the Relationship Between Change in Corporate Social Performance and Financial Performance: A Stakeholder Theory Perspective. [REVIEW] Journal of Business Ethics 32 (2):143 - 156.
Maria-Gaia Soana (2011). The Relationship Between Corporate Social Performance and Corporate Financial Performance in the Banking Sector. Journal of Business Ethics 104 (1):133-148.
Rim Makni, Claude Francoeur & François Bellavance (2009). Causality Between Corporate Social Performance and Financial Performance: Evidence From Canadian Firms. [REVIEW] Journal of Business Ethics 89 (3):409 - 422.
Irene Goll & Abdul A. Rasheed (2004). The Moderating Effect of Environmental Munificence and Dynamism on the Relationship Between Discretionary Social Responsibility and Firm Performance. Journal of Business Ethics 49 (1):41-54.
Bruce Seifert, Sara A. Morris & Barbara R. Bartkus (2003). Comparing Big Givers and Small Givers: Financial Correlates of Corporate Philanthropy. [REVIEW] Journal of Business Ethics 45 (3):195 - 211.
Daisuke Okamoto (2009). Social Relationship of a Firm and the Csp–Cfp Relationship in Japan: Using Artificial Neural Networks. [REVIEW] Journal of Business Ethics 87 (1):117 - 132.
Cyril Bouquet & Yuval Deutsch (2008). The Impact of Corporate Social Performance on a Firm's Multinationality. Journal of Business Ethics 80 (4):755 - 769.
Khaled Elsayed (2006). Reexamining the Expected Effect of Available Resources and Firm Size on Firm Environmental Orientation: An Empirical Study of UK Firms. [REVIEW] Journal of Business Ethics 65 (3):297 - 308.
Added to index2009-01-28
Total downloads54 ( #79,069 of 1,907,046 )
Recent downloads (6 months)4 ( #200,048 of 1,907,046 )
How can I increase my downloads?