Corporate Social Activities and Adjusted Firm Performance: An SOE’s Context

Eriandani, Rizky and Winarno, Wahyu Agus (2021) Corporate Social Activities and Adjusted Firm Performance: An SOE’s Context. Indian Journal of Economics and Business, 20 (2). pp. 329-339. ISSN 0972-5784

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Official URL / DOI: https://zenodo.org/record/5409509#.YYC6P55BziA

Abstract

This study examines the empirical effect of the relationship between corporate social activities and firm performance in the state-owned enterprises (SOEs). This paper focuses upon the SOE context due to specific regulations for this kind of company. This study analyzed the individual performance and industry adjusted firm performance for both SOE and non-SOE. Based upon 683 firm-year observations, we found that corporate social responsibility (CSR) activities improve firm performance. Moreover, SOEs do not moderate the relationship between CSR activities and company performance. However, the subgroup analysis demonstrated different result. CSR significantly affects firm performance for the non-SOE companies and vice versa for the SOEs. This finding indicates that CSR activities as mandatory for SOEs might be the factor that caused the insignificant effect towards the SOEs’ performance. The research implicates to the regulators to set standards or guidelines for sustainability practices, especially for SOEs.

Item Type: Article
Uncontrolled Keywords: Corporate social responsibility, CSR spending, Firm performance, State-owned enterprises, Industry adjusted firm performance
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
H Social Sciences > HN Social history and conditions. Social problems. Social reform
Divisions: Faculty of Business and Economic > Department of Accounting
Depositing User: RIZKY ERIANDANI M.Ak. - 209174
Date Deposited: 02 Nov 2021 06:30
Last Modified: 02 Nov 2021 06:30
URI: http://repository.ubaya.ac.id/id/eprint/40678

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