Paper Title
Corporate Social Responsibility Threshold on the Relationship of Corporate Operating Expenditures and Corporate Financial Performance
Abstract
The influence of corporate social responsibility (CSR) on corporate financial performance (CFP) is an important issue for practitioners and researchers. CSR has become a major business consideration for the long term operational strategies of enterprises. This study investigates whether the impact of firm’s financial performance (CFP) will differ according to the level of CSR performance and the level of annual operating expenditures. The"Excellence in Corporate Social Responsibility TOP50" award results are the CSR performance indicator, and corporate annual financial performance data from 2010 to 2017 are the empirical data. This study uses the Panel Smooth Transition Regression Model (PSTR) developed by González, Teräsvirta and van Dijk (2004, 2005) to explore the nonlinear relationship between annual operating expenditure and CFP as affected by corporations CSR award performance as the threshold variable.
Keywords - CSR, CFP, Non-Linear