Volume 29, Issue 4, July 2020, Pages 1142–1152
Jihad El Yaagoubi1
1 Department of Economics and Management, Abdelmalek Essaadi University, Tetouan, Morocco
Original language: English
Copyright © 2020 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study deals with the relationship between corporate social responsibility (CSR) and financial performance (FP) of Casablanca stock exchange companies. Our investigation covers the period 2012-2017. CSR is approached by a dummy variable which takes value of 1 if the company is labeled by CGEM CSR label, and value of 0 if not. Accounting and financial performance indicators were used to assess the FP: Return On Assets (ROA), Return On Equity (ROE), Return On Sales (ROS) and Market to Book Value (MBV). Con rol variables are measured by size, age, risk, and industry. Panel data are used as well to analyze data. Descriptive statistics, regression and correlation analyses were carried out. Findings of this study indicate mixed results which might be explained by the early stage of CSR in Morocco. Indeed, we have found a positive impact of CSR on PF, when using ROA as proxy in FP. This result supports social impact hypothesis. The study however didn’t find any impact of CSR on FP when using ROE as proxy in FP, sustaining the neutrality hypothesis. When using ROS, the relationship is found negative and supports since then the tradeoff hypothesis. The model testing the impact of CSR on MBV was not significant.
Author Keywords: Corporate social responsibility, social performance, Return On Assets, Return On Equity, Return On Sales, Market to Book Value, panel data, listed Moroccan companies.
Jihad El Yaagoubi1
1 Department of Economics and Management, Abdelmalek Essaadi University, Tetouan, Morocco
Original language: English
Copyright © 2020 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This study deals with the relationship between corporate social responsibility (CSR) and financial performance (FP) of Casablanca stock exchange companies. Our investigation covers the period 2012-2017. CSR is approached by a dummy variable which takes value of 1 if the company is labeled by CGEM CSR label, and value of 0 if not. Accounting and financial performance indicators were used to assess the FP: Return On Assets (ROA), Return On Equity (ROE), Return On Sales (ROS) and Market to Book Value (MBV). Con rol variables are measured by size, age, risk, and industry. Panel data are used as well to analyze data. Descriptive statistics, regression and correlation analyses were carried out. Findings of this study indicate mixed results which might be explained by the early stage of CSR in Morocco. Indeed, we have found a positive impact of CSR on PF, when using ROA as proxy in FP. This result supports social impact hypothesis. The study however didn’t find any impact of CSR on FP when using ROE as proxy in FP, sustaining the neutrality hypothesis. When using ROS, the relationship is found negative and supports since then the tradeoff hypothesis. The model testing the impact of CSR on MBV was not significant.
Author Keywords: Corporate social responsibility, social performance, Return On Assets, Return On Equity, Return On Sales, Market to Book Value, panel data, listed Moroccan companies.
How to Cite this Article
Jihad El Yaagoubi, “Impact of CSR on financial performance of Casablanca Stock Exchange companies: A longitudinal study,” International Journal of Innovation and Applied Studies, vol. 29, no. 4, pp. 1142–1152, July 2020.
