The Impact of Corporate Social Responsibility on the Financial Performance of Listed Companies in Thailand
Abstract
:1. Introduction
2. Literature Review
2.1. Theoretical Perspective
2.2. CSR of Listed Companies in a Thai Context
3. Methodology
Hypothesis Development
4. Methods
ROA = β0 + β1SPEND + β2AWARD + β3ACTIVI + β4SIZE + β5RISK + β6AGE + β7COMMIT + β8AUDIT + ε (Model B)
5. Findings and Discussion
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Variable | Notation | Measurement |
---|---|---|
CSR spending | SPEND | CSR spending per activity as million baht |
CSR award | AWARD | CSR award as number of awards |
CSR activity | ACTIVI | CSR activity as number of activities |
Financial performance | ROA | Return on asset (ROA) |
Firm size | SIZE | Natural logarithm of total assets |
Firm risk | RISK | Debt to equity ratio |
Firm age | AGE | Year of firm age |
CSR committee | COMMIT | Dummy variables as 1 = Have CSR committee in the firm, and 0 = the others |
Audit type | AUDIT | Dummy variables as 1 = Big 4 auditors, and 0 = the others |
Disclosure | 2015 | 2016 | 2017 | 2018 | 2019 | Average n = 293 |
---|---|---|---|---|---|---|
n = 52 | n = 53 | n = 62 | n = 62 | n = 64 | ||
Mean (SD) | Mean (SD) | Mean (SD) | Mean (SD) | Mean (SD) | Mean (SD) | |
CSR spending | 2.0969 (3.6998) | 2.0721 (2.9356) | 2.1238 (3.2416) | 2.4205 (4.0113) | 2.8638 (4.1482) | 2.2964 (3.5791) |
CSR award | 2.1538 (3.5112) | 2.1887 (4.1373) | 2.1774 (3.7918) | 2.2903 (3.1068) | 2.0625 (3.0957) | 2.1741 (3.5064) |
CSR activity | 9.5490 (13.3796) | 11.1887 (15.8661) | 11.5000 (14.9839) | 12.1290 (15.5009) | 12.3281 (14.6396) | 11.4178 (14.8487) |
Variables | ROA | SPEND | AWARD | ACTIVI | SIZE | RISK | AGE | COMMIT | AUDIT |
---|---|---|---|---|---|---|---|---|---|
ROA | 1 | −0.214 ** | 0.190 ** | 0.233 ** | 0.121 * | −0.126 * | −0.043 | 0.065 | 0.217 ** |
SPEND | - | 1 | −0.023 | −0.048 | 0.038 | −0.035 | 0.187 ** | 0.186 ** | −0.073 |
AWARD | - | - | 1 | 0.311 ** | 0.424 ** | −0.056 | 0.115 * | 0.345 ** | 0.199 ** |
ACTIVI | - | - | - | 1 | 0.253 ** | −0.032 | 0.113 * | 0.316 ** | 0.220 ** |
SIZE | - | - | - | - | 1 | −0.019 | 0.211 ** | 0.248 ** | 0.324 ** |
RISK | - | - | - | - | - | 1 | −0.036 | −0.087 | 0.120 * |
AGE | - | - | - | - | - | - | 1 | 0.09 | −0.163 ** |
COMMIT | - | - | - | - | - | - | - | 1 | 0.099 |
AUDIT | - | - | - | - | - | - | - | - | 1 |
Variable | Model A | Model B | ||
---|---|---|---|---|
B | t (sig) | B | t (sig) | |
Constant | 2.584 | 5.222 (0.000 **) | 1.947 | 2.222 (0.027 *) |
SPEND | −0.095 | −3.542 (0.000 **) | −0.084 | −3.151 (0.002 **) |
AWARD | 0.25 | 2.620 (0.009 **) | 0.239 | 2.361 (0.019 *) |
ACTIVI | 0.082 | 3.516 (0.001**) | 0.07 | 3.001 (0.003 **) |
SIZE | - | - | −7.454 | −1.160 (0.247) |
RISK | - | - | −0.412 | −3.733 (0.000 **) |
AGE | - | - | −0.014 | −0.729 (0.467) |
COMMIT | - | - | −0.329 | −0.409 (0.683) |
AUDIT | - | - | 2.937 | 3.564 (0.000 **) |
R Square | 0.151 | 0.238 | ||
Adj. R Square | 0.14 | 0.21 | ||
F-value (sig) | 13.639 (0.000 **) | 8.761 (0.000 **) | ||
n | 293 | 293 |
Variable | n | Mean | SD | t | Sig. | |
---|---|---|---|---|---|---|
CSR spending | With | 72 | 6.2376 | 23.2294 | 2.923 | 0.004 ** |
Without | 221 | 0.9853 | 2.5063 | |||
CSR award | With | 72 | 4.2917 | 4.2208 | 6.276 | 0.000 ** |
Without | 221 | 1.4842 | 2.9366 | |||
CSR activity | With | 72 | 19.6111 | 20.7945 | 5.674 | 0.000 ** |
Without | 221 | 8.7409 | 11.1093 |
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Suttipun, M.; Lakkanawanit, P.; Swatdikun, T.; Dungtripop, W. The Impact of Corporate Social Responsibility on the Financial Performance of Listed Companies in Thailand. Sustainability 2021, 13, 8920. https://doi.org/10.3390/su13168920
Suttipun M, Lakkanawanit P, Swatdikun T, Dungtripop W. The Impact of Corporate Social Responsibility on the Financial Performance of Listed Companies in Thailand. Sustainability. 2021; 13(16):8920. https://doi.org/10.3390/su13168920
Chicago/Turabian StyleSuttipun, Muttanachai, Pankaewta Lakkanawanit, Trairong Swatdikun, and Wilawan Dungtripop. 2021. "The Impact of Corporate Social Responsibility on the Financial Performance of Listed Companies in Thailand" Sustainability 13, no. 16: 8920. https://doi.org/10.3390/su13168920