Causality between corporate social performance and financial performance: The case of selected companies listed in the Philippine Stock Exchange

Date of Publication

2011

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Leonardo B. Araneta

Defense Panel Chair

Jemelyn Go

Defense Panel Member

Tomas Tiu
Rene Betita

Abstract/Summary

This paper focuses on the causal relationship of corporate social performance (CSP) and financial performance (FP). CSP, also known as corporate social responsibility (CSR), determines the social feature of a company while FP focuses on the business operations of a company. The main purpose of this study is to find out if there is causal effect between CSP and FP of publicly listed companies in the Philippines from 1995 to 2009 using the Granger causality test. The significance of the study is to show whether compliance with corporate social performance would result to better financial performance or, to know if good financial performance would lead to an improved corporate social performance. CSP measures were obtained using a survey patterned with the Hang Seng index constituent company's survey which is used in CSR-Asia in the Pacific Region. The CSP variable were general CSP, social, environment, governance and aggregate CSP score. FP measures were based on the ROA and ROE of each company which were taken from the Osiris and SEC databases. Control variables of the study were size, risk and industtry. According to the Granger causality approach, the results have shown that there was no causal relationship between CSP and FP in the Philippines.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21567

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

37, [50] leaves

Keywords

Social responsibility of business--Philippines; Financial institutions--Philippines

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