The Value Relevance of CSR Performance: the influence of national culture

Abstract

Building from the major variation in findings across previous research performed concerning the value relevance of CSR performance information, this thesis adds the complexity of national culture in an attempt to broaden existing knowledge on the cultural favoritism and challenges with regards to the acceptance of CSR practices. In doing so, this thesis attempted to explain the moderating role of national culture within the value relevance relationship of CSR performance information. Through employing both fixed effects estimations and multilevel analysis on a substantial cross-national dataset over the years 2016-2019, this thesis estimated the value relevance relationship between CSR performance and the firm’s share price. Findings include a significantly negative moderation effect on the Individualism dimension, and positive moderations on the Uncertainty Avoidance and Long-Term Orientation dimensions. Through these findings, this thesis concludes that culture does play a significant moderating role concerning the usefulness of CSR performance information. These findings are to be employed by both firms and policy makers in their endeavors towards a more sustainable and equal world. Moreover, these findings function as foundations for future research to build upon in order to extend the field’s knowledge.