Global Research Journal of Management and Social Sciences (GRJMSS)

THE INTERSECTION OF DYNAMIC NON-LINEARITY AND CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE- FINANCIAL PERFORMANCE RELATIONSHIP

Authors

  • Yusoff W. F. W School of Management, Wuhan University of Technology, China
  • Adamu M. S School of Management, Wuhan University of Technology, China

Abstract

This study investigates the non-linear relationship between corporate social responsibility disclosure (CSRD) and financial performance (FP) using System GMM and Delta method techniques, focusing on 215 African listed companies from 2005 to 2016. The research aims to attain empirical evidence on the effect of CSRD on the company's FP indicators and scrutinize the short-term impact of CSRD using System GMM combined with distributed lag and long-run estimation over four-year horizons through the Delta method in a dynamic panel model. The study makes varied contributions to the existing literature by examining a non-linear relationship between CSRD and FP through two different methods, pioneering system GMM with distributed lag and substantial sample size of 215 firms in the African context. Our findings indicate a non-linear relationship between CSRD and FP, highlighting the significance of integrating social practices as part of overall firm strategy. The study proves beneficial for stakeholders, financial analysts, potential shareholders, and investors interested in the corporate welfare of firms to understand the impact of CSRD on FP and maximize economic benefits for long-term survival. The study recommends that researchers explore more rigorous and complex methodologies to avoid inconsistencies in findings and compare the relationship between CSR and FP across industries. The research suggests a further investigation of independent variables that affect company's performance and their interaction with CSRD

Keywords:

Corporate Social Responsibility Disclosure, Financial Performance, System GMM, Delta method, Africa

Downloads

Published

2022-10-01

Issue

Section

Articles

How to Cite

Yusoff, W. F. W., & Adamu, M. S. (2022). THE INTERSECTION OF DYNAMIC NON-LINEARITY AND CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE- FINANCIAL PERFORMANCE RELATIONSHIP. Global Research Journal of Management and Social Sciences (GRJMSS), 13(10), 1–32. Retrieved from https://zapjournals.com/Journals/index.php/grjmss/article/view/512

Similar Articles

<< < 1 2 3 4 5 > >> 

You may also start an advanced similarity search for this article.