Objective— This study aims to investigate whether corporate social responsibility (CSR) promotes R&D investment, whether R&D investment promotes Total Factor Productivity (TFP), and whether R&D investment plays a mediating role in the impact CSR on TFP.
Methodology/Technique – Based on the hypotheses, this study constructed the structural equation model, with CSR as the independent variable, TFP as the dependent variable, and R&D as the mediating variable. The control variables are capital investment (CAP), gearing (LEV) and return on assets (ROA). The causal relationship and the heterogeneity of regional and Senior managers attributes were analyzed using SPSS software.
Findings – Based on all sample data and analyzed using SPSS, it is found that CSR in the solid waste treatment industry has a positive effect on R&D investment, and R&D investment has a positive effect on TFP. Meanwhile, R&D investment plays a mediating role in the impact of CSR on enterprises' TFPs.
Novelty – The novelty of this paper lies in the fact that China's solid waste treatment industry was selected as the object of analysis, and the relationship between CSR and TFP as well as the mediating effect of R&D investment in this industry were analyzed.
Type of Paper: Empirical
JEL Classification: M14, O32, Q53
Keywords: Corporate Social Responsibility; Research and Development; Solid Waste Treatment Industry
Reference to this paper should be made as follows: Nian, Z; Indiran, L; Sulaiman, Z; Anityasari, M. (2024). The Impact of Corporate Social Responsibility on Total Factor Productivity in the Solid Waste Treatment Industry: The Mediating Effect of R&D Inputs, J. Fin. Bank. Review, 9(2), 61 – 70. https://doi.org/10.35609/jfbr.2024.9.2(2)