Proceedings of 10th Asia - Pacific Business and Humanities Conference
22 - 23 February 2016, Hotel Istana, Kuala Lumpur, Malaysia
ISBN: 978-1-925488-00-5
Does corporate social responsibility participation improve financial
performance? Evidence from Taiwan
Shu-Ching Chou* and Yen-Hui Kuo**
This study investigates how a firm’s CSR participation relates to firm
performance by using a sample of Taiwanese firms. We define CSR
participation when a firm issues sustainability report. The results show that
CSR participation is positively related to exporting sales and Tobin’s Q in
short-run; but not related to overall accounting performance. A further
investigation shows that environmental expenditure cause trade-off of
economic benefit on increased exporting sales. The findings indicate that CSR
participation might provide advantage in obtaining international trading
contracts, but not relevant to firm overall performance. The findings help to
clarify the role of CSR compliance in economies with focus on exporting
trading.
JEL code: G34, M14
Dr. Shu-Ching Chou, Department of Graduate Institute of Finance, National Yunlin University of Science
& Technology, Taiwan, E-mail:chousc@yuntech.edu.tw
**
Phd. Student, Yen-Hui Kuo, Department of Graduate Institute of Finance, National Yunlin University of
Science & Technology, Taiwan, E-mail: gaulove888@gmail.com
*
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