Linking corporate social responsibility and financial performance in Spanish firms

This study focuses on the effect of Corporate Social Responsibility (CSR) initiatives on financial performance, using the information disclosed by companies on their websites. The final sample is made up of the 122 companies listed on the Madrid Stock Exchange (Spain). The empirical analysis entaile...

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Bibliographic Details
Authors: Muñoz Castellanos, Rosa María, Sánchez de Pablo González del Campo, Jesús David, Peña García-Pardo, Isidro
Format: article
Publication Date:2015
Country:España
Institution:Universidad de Castilla-La Mancha
Repository:RUIdeRA. Repositorio Institucional de la UCLM
OAI Identifier:oai:ruidera.uclm.es:10578/33085
Online Access:https://hdl.handle.net/10578/33085
Access Level:Open access
Keyword:CSR
Corporate social responsibility
Financial performance
Intangible resources
Stakeholder theory
Market-to-book ratio
Firm performance
Spain
Corporate websites
Long-term performance
Responsabilidad social corporativa
Description
Summary:This study focuses on the effect of Corporate Social Responsibility (CSR) initiatives on financial performance, using the information disclosed by companies on their websites. The final sample is made up of the 122 companies listed on the Madrid Stock Exchange (Spain). The empirical analysis entailed two phases: an analysis of the differences among thecompanies’ Financial Performance (FP) depending on their CSR strategy, and the use of a hierarchical cluster analysis and a multiple linear regression in order to explain the effect of CSR practices on corporate performance. The results of the analyses were significant and in the direction hypothesised. That is, CSR improves financial performance and, when considering the intangible.components of CSR, the relationship is stronger for the company’s long-termperformance than for its short-term performance.