The moderating effect of CSR assurance on the relationship between CSR performance and financial performance for European firms
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2025-07-07
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en
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This thesis investigates the moderating effect of external CSR assurance on the relation between CSR performance and financial performance, while also addressing some endogeneity concerns. This relation was analysed with the use of a system GMM model, containing a sample of firms in similar European countries between the years 2015 and 2023. The results show a significant positive relationship between the combined ESG score and ROA. In contrast, the relationship with ROE was positive but insignificant, and with Tobin’s Q negative and insignificant. The effects of the individual pillars were mixed. For ROA, only the social pillar was significantly positive, the environmental and governance pillars were both insignificant. For ROE, none of the pillars were significant, while Tobin’s Q has a negative significant relation with the governance pillar, but insignificant results with the environmental and social pillar. The moderating effect of CSR assurance was found to be insignificant across all financial performance indicators. These results contradict the majority of research that finds a significant positive relationship between CSR performance and financial performance, which underscores the complexity and context dependency of this relationship.
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Faculteit der Managementwetenschappen