The Relationship between Corporate Social Responsibility Performance and Financial Performance of Listed Companies in Thailand
Keywords:
Corporate Social Responsibility, CSR Performance, Financial PerformanceAbstract
This study investigates the relationship between corporate social responsibility (CSR) performance and financial performance of listed companies in Thailand. CSR award, CG award, Sustainability award, and Thailand Sustainability Investment (THSI) are proxies for corporate social responsibility performance. Return on Assets (ROA), Return on Equity (ROE), sales growth, revenue growth, 3-day cumulative abnormal return, and 1 year, 3 years, and 5 years cumulative abnormal return are proxies for financial performance. The results show that CSR performance has a positive relationship with ROA for sample with industry-year-size match. However, there is insufficient evidence of a relationship between CSR performance and cumulative 1 year, 3 years, and 5 years abnormal returns. For event study using 3-day cumulative abnormal return around the announcement of award day, investors in agricultural and food industry, and property and construction industry react positively to the award news. On the contrary, investors in industrial, resources, services and technology industries react negatively to the award news.
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