The moderating effect of culture on the relationship between corporate social performance and corporate financial performance
Keywords
No Thumbnail Available
Authors
Issue Date
2025-07-10
Language
en
Document type
Journal Title
Journal ISSN
Volume Title
Publisher
Title
ISSN
Volume
Issue
Startpage
Endpage
DOI
Abstract
This thesis examines the moderating effect of culture on the relationship between corporate social performance (CSP) and corporate financial performance (CFP). CSP is proxied by the social pillar score while CFP is measured by return on assets, return on equity and market value. The sample consists of 5541 companies across 39 countries measured from 2017 until 2022. Cultural values are captured from GLOBE and Hofstede which enables the comparison of differences and similarities in definition together with the results. Pooled OLS regression models are used with year and industry fixed effects together with firm-level clustered standard errors. Results show significant evidence that CSP positively affects CFP supported by all three measures. This study contributes to the literature by providing many cultural dimensions significantly affecting the relationship between CSP and CFP. The large amount of cultural dimensions explain culture in many ways and thus provide a clear understanding how culture affects the CSP-CFP link.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen