An empirical examination of the corporate social performance – the financial performance relationship in China based on the different measures perspective. (26th May 2009) - Wu, Wei
Previous work has indicated that the empirical relationship between Corporate Social Performance (CSP) and financial performance has some contradictory results. Using a set of large-sample data on the surveyed questionnaire, this paper reports that CSP is partially found to be positively associated with Corporate Financial Performance (CFP) in China. The results also show that CSP consists of CSP disclosures, CSP reputation ratings and social audits measures, while the measures of CSP is associated with three broad strategies: market-based, accounting-based and perceptual (survey) measures. The study affirms that the different measures of CSP have a different effect on the different measures of CFP after controlling for industry type and firm size (with size measured in three ways).