Corporate Social Responsibility, Corporate Governance and Business Performance of Non-Financial Industry
Purpose: In view of the past literatures on the impact of corporate social responsibility (CSR) on performance there are several with inconsistent conclusions, or with rare researches of the determinants of CSR. Besides, most of the literatures do not compare the efficiency with or without CSR, and related researches are either with short periods, or they only consider specific industries. Design/Methodology/Approach: Therefore, this study constructs empirical data of financial industry in Taiwan from 2007 to 2016. First, we use the CommonWealth magazine “Corporate Citizenship Award TOP50” listed on the OTC Company’s four indicators and the total score for the cross-industry analysis. Second, we construct the panel data model of the impacts of CSR and corporate governance on operating performance, and adopt other multi-variable considerations. Then, we divide into with or without CSR enterprises, and use data envelopment analysis (DEA) to analyze the differences of efficiency. Finally, we further examine the factors that affect the willingness of enterprises to invest in CSR. Findings: The empirical results show that with the determinants of business performance, in ROA, ROE and EPS models, CSR is significant in non-financial industry samples. The DEA results show that CSR companies have better performance in non-financial industries. Finally, the results of enterprises willing to invest in CSR show that, in non-financial industry the larger the size of the company, the more willingness to invest in CSR. Practical Implications: The research results may be implemented into managerial practices in order to improve and increase the business performance and efficiency of CSR companies. Originality/Value: The research studies the impact of corporate social responsibility (CSR) on performance and compares the efficiency with or without CSR from non-financial industries.