The effects of CSR acitvity on firm performance for companies located in the BRIC countries
Corporate social responsibility is a concept which received an increased amount of attention from the public, governmental bodies, the press and the business themselves. However, when investigating the research towards this topic, the findings are diverse with many different factors influencing this relationship. Additionally, it has been found that a majority of the research body is focused on explaining this relationship for companies located in developed countries, whereas developing countries are neglected. This study examines the effect of the proxies of CSR (being the ESG-index) on firm performance for both the short, and long-term (being RoA and Tobin’s Q respectively). The dataset used is gathered from 2017 of 474 companies located in the BRIC countries. And a cross-sectional OLS regression analysis was adopted. However, based on this research, a negative and insignificant relationship was been found and therefore, no link has been stablished between the ESG index and both dependent variables. However, a positive relationship was established for firms with high ESG scores and the long-term performance of a firm.
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