The mediating effect of corporate social responsibility on the relationship between corporate governance and financial performance. (c2016)

Abstract

This project would not have been possible without the support of many people. Many thanks to my advisor Dr. Walid El Gammal and committee members Dr. Raed El Khalil and Mrs. Janine Zakka whom they offered guidance and support, read my numerous revisions, and helped make some sense of the confusion.

The nexus between corporate social responsibility and firm value: the moderating role of life-cycle stages

“…Based on the research of Anker (2016), Hou (2019), Ramzan et al (2021), some control variables have an impact on the CSR–CFP relationship. Firm size (SIZE) is calculated by the natural logarithm of the book value of total assets at year-end.…”

“…In the introduction stage, small firms can meet the demands of consumers and businesses seeking socially responsible goods and services (Dibrell et al, 2011). Because of their entrepreneurial mindset, these companies may be more driven than older and larger companies to develop a socially responsible value proposition (Anker, 2016). Besides, these companies are more likely to have state-up-the-art assets that do not break environmental rules and use energy effectively, leading that environmental issues are less likely to arise (Sharma, 2000;Winn and Angell, 2000).…”

“…Thus, employees and customers are the main objects concerned by enterprises. However, in this stage, a massive fraction of resources will be allocated for the firm's expansion (Anker, 2016). According to Jovanovic (1982), cash flows from operating and investing activities of companies in the growth stages are frequently negative because management optimism motivates companies to invest early to develop competitors' ability to enter the market.…”

“…The association between CSR and FV is complex, controlled by the link between the firm and its environment. So, a new factor was introduced in the research of Elsayed and Paton (2009), Anker (2016) to moderate the CSR and CFP relationship is organizational life cycle (OLC). As organizations grow in size and age, they follow a predictable pattern represented through a series of developing phases.…”

“…Based on the shareholder theory, many people believe that the primary firm's target is to maximize shareholders' value, while, according to the stakeholder theory, companies should also focus on other stakeholders besides shareholders like employees, suppliers, etc. (Anker, 2016). Therefore, the question about CSR's role in an organization's operational process was raised: what benefits can a company derive from disclosing its social responsibility activities?…”