Association of Corporate Social Responsibility Award and Corporate Financial Distress Risk
| Autor: | Chang, Chun-Wei, 張浚洧 |
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| Rok vydání: | 2019 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 107 The objective of this thesis is to investigate the relationship between the performance of corporate social responsibility (CSR) measured by the score (and its sub-indices including corporate governance, enterprise promise, social participation and environmental sustainability) of CSR awarded companies and the firms’ distress risk. Although firms devote to CSR activities could enhance their reputation and images, it remains a puzzle whether CSR investment is helpful to firms’ financial sustainability. Firms increase CSR investment could build more trust from their stakeholders and hence reduce firms’ distress risk, however, increasing operation costs could also leverage their risk of distress. Therefore, the effect of CSR investment on firm financial risk needs further studies. This thesis adopts Taiwan listed and OTC companies which win CSR awards provided by Common Wealth Magazine from 2007 to 2018 as a research sample. I investigate the association of CSR score and its sub-index scores with firm financial risk measured by Altman Z score and further analyze the relationship during 2007-2008 financial crisis. The results show that CSR and its sub-indices scores of awarded listed and OTC companies have no relation with their distress risks. Only the sample of median size enterprises display a slightly negative relationship. This implies that better CSR performance has no significant relation with firm financial robustness. However, firms engaging in social participation and environmental sustainability better have more robust financial performance during the financial crisis comparing with non-financial crisis period. To sum up, enterprises put more emphasis on sustainability in CSR win stakeholders’ trust and hence are more likely to get past financial crisis. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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