Impact of corporate social responsibility on automotive firm performance

Prevailing studies on the economic implications of corporate social responsibility (CSR) for companies have, for the most part, emphasised the positive facets of CSR, failing to see that firms also espouse behaviours and initiatives which can be termed as negative CSR. In view of this, this st...

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Main Author:	Lin, Woon Leong
Format:	Thesis
Language:	English
Published:	2019
Subjects:	Automobile industry and trade Automation - Economic aspects Labor supply - Effect of automation on
Online Access:	http://psasir.upm.edu.my/id/eprint/85525/1/SPE%202020%204%20ir.pdf
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id	my-upm-ir.85525
record_format	uketd_dc
spelling	my-upm-ir.855252021-12-14T08:23:31Z Impact of corporate social responsibility on automotive firm performance 2019-11 Lin, Woon Leong Prevailing studies on the economic implications of corporate social responsibility (CSR) for companies have, for the most part, emphasised the positive facets of CSR, failing to see that firms also espouse behaviours and initiatives which can be termed as negative CSR. In view of this, this study presents a framework connecting positive as well as negative CSR to firm performance. Acknowledging societal needs and having effective dialogue with shareholders and stakeholders regarding firms' social profiles as well as risk management practices are likely to reduce the firm risk, shape firms' reputation and enhance profitability. These are indeed valuable in the wake of the scandals for car maker’s continuity and enhancing shareholder value. It is argued that effective competitive action and innovation are likely to encourage more CSR activities, reputation and risk management, which in turn is expected to improve stock prices, profits, enhance firm value and reduce return volatility. This study examines the potential relationship between CSR (Positive CSR and Negative CSR), firm performance, firm risk levels, and corporate reputation. It contributes toward a better understanding of the influence of internal competitive action and innovation mechanisms on positive and negative CSR and their substantive consequences on firm performance. Examining 132 top automotive firms, this study uses the dynamic panel data system Generalise Moment of Method (GMM) estimates to analyse the relationship between positive CSR, negative CSR and firm performance (e.g., corporate financial performance (CFP), firm risk and corporate reputation); this study also examined the moderating role of competitive action and innovation on the CSRFP relationship. Based on an investigation of secondary information of 132 global automotive firms, over the period of 2011–2017, this study found evidence supporting the relationship between positive CSR and negative CSR and firm performance and showed that CSR significantly impacted firm performance, with positive CSR improving it and negative CSR harming it. Correspondingly, the outcomes indicated that there was no guarantee of the augmentation in firm performance from positive CSR, with firms possessing high degrees of competitive action and innovation experiencing higher firm performance. The results also suggested that higher positive CSR score reduced uncertainties of firm risk, improved firm’s profitability and provided investors with valuable information to assess financial assets and monitor management practices. This was reflected as an improvement to Goodwill, Return On Assets and Return On Equity and reduction to return volatility when the present of competitive action and innovation. Automobile industry and trade Automation - Economic aspects Labor supply - Effect of automation on 2019-11 Thesis http://psasir.upm.edu.my/id/eprint/85525/ http://psasir.upm.edu.my/id/eprint/85525/1/SPE%202020%204%20ir.pdf text en public doctoral Universiti Putra Malaysia Automobile industry and trade Automation - Economic aspects Labor supply - Effect of automation on Ho, Jo Ann
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
advisor	Ho, Jo Ann
topic	Automobile industry and trade Automation - Economic aspects Labor supply - Effect of automation on
spellingShingle	Automobile industry and trade Automation - Economic aspects Labor supply - Effect of automation on Lin, Woon Leong Impact of corporate social responsibility on automotive firm performance
description	Prevailing studies on the economic implications of corporate social responsibility (CSR) for companies have, for the most part, emphasised the positive facets of CSR, failing to see that firms also espouse behaviours and initiatives which can be termed as negative CSR. In view of this, this study presents a framework connecting positive as well as negative CSR to firm performance. Acknowledging societal needs and having effective dialogue with shareholders and stakeholders regarding firms' social profiles as well as risk management practices are likely to reduce the firm risk, shape firms' reputation and enhance profitability. These are indeed valuable in the wake of the scandals for car maker’s continuity and enhancing shareholder value. It is argued that effective competitive action and innovation are likely to encourage more CSR activities, reputation and risk management, which in turn is expected to improve stock prices, profits, enhance firm value and reduce return volatility. This study examines the potential relationship between CSR (Positive CSR and Negative CSR), firm performance, firm risk levels, and corporate reputation. It contributes toward a better understanding of the influence of internal competitive action and innovation mechanisms on positive and negative CSR and their substantive consequences on firm performance. Examining 132 top automotive firms, this study uses the dynamic panel data system Generalise Moment of Method (GMM) estimates to analyse the relationship between positive CSR, negative CSR and firm performance (e.g., corporate financial performance (CFP), firm risk and corporate reputation); this study also examined the moderating role of competitive action and innovation on the CSRFP relationship. Based on an investigation of secondary information of 132 global automotive firms, over the period of 2011–2017, this study found evidence supporting the relationship between positive CSR and negative CSR and firm performance and showed that CSR significantly impacted firm performance, with positive CSR improving it and negative CSR harming it. Correspondingly, the outcomes indicated that there was no guarantee of the augmentation in firm performance from positive CSR, with firms possessing high degrees of competitive action and innovation experiencing higher firm performance. The results also suggested that higher positive CSR score reduced uncertainties of firm risk, improved firm’s profitability and provided investors with valuable information to assess financial assets and monitor management practices. This was reflected as an improvement to Goodwill, Return On Assets and Return On Equity and reduction to return volatility when the present of competitive action and innovation.
format	Thesis
qualification_level	Doctorate
author	Lin, Woon Leong
author_facet	Lin, Woon Leong
author_sort	Lin, Woon Leong
title	Impact of corporate social responsibility on automotive firm performance
title_short	Impact of corporate social responsibility on automotive firm performance
title_full	Impact of corporate social responsibility on automotive firm performance
title_fullStr	Impact of corporate social responsibility on automotive firm performance
title_full_unstemmed	Impact of corporate social responsibility on automotive firm performance
title_sort	impact of corporate social responsibility on automotive firm performance
granting_institution	Universiti Putra Malaysia
publishDate	2019
url	http://psasir.upm.edu.my/id/eprint/85525/1/SPE%202020%204%20ir.pdf
_version_	1747813552893198336

Impact of corporate social responsibility on automotive firm performance

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