@article{3283aef8688c4eb0a6d540aae3b700fe,
title = "The Moderating Effect of Cultural Values on the Relationship Between Corporate Social Performance and Firm Performance",
abstract = "Using two national culture dimensions, we show that the influence of firms{\textquoteright} corporate social performance (CSP) on corporate financial performance (CFP) hinges on culture. Specifically, CFP is higher in those firms where CSR initiatives are congruent with the cultural environment. CSP has a negative impact on CFP for those firms domiciled in countries which are individualistic and favor flexibility. These findings are amplified for those firms with low levels of foreign influence in terms of institutional ownership and sales. Using a dataset covering 5334 firms from 41 different countries, our results indicate that culture and CSR initiatives have a powerful interaction effect in determining CFP, suggesting that CSP{\textquoteright}s impact is dependent upon the culture of the country where the firm resides.",
keywords = "Corporate social performance, Cultural values, Firm performance",
author = "Wei Shi and Kevin Veenstra",
note = "Funding Information: We are thankful for constructive comments and suggestions from participants at the Journal of Corporate Finance conference on Culture & Finance held at Wake Forest University, participants at the EAA conference held at the University of Strathclyde, Glasgow, participants at the AAA annual conference held at Chicago, Illinois, seminar participants at the University of Waterloo, and three anonymous reviewers. Veenstra gratefully acknowledges the financial support of McMaster University. All errors are our own. Funding Information: We are thankful for constructive comments and suggestions from participants at the Journal of Corporate Finance conference on Culture & Finance held at Wake Forest University, participants at the EAA conference held at the University of Strathclyde, Glasgow, participants at the AAA annual conference held at Chicago, Illinois, seminar participants at the University of Waterloo, and three anonymous reviewers. Veenstra gratefully acknowledges the financial support of McMaster University. All errors are our own. Publisher Copyright: {\textcopyright} 2020, Springer Nature B.V.",
year = "2021",
month = nov,
doi = "10.1007/s10551-020-04555-9",
language = "English (US)",
volume = "174",
pages = "89--107",
journal = "Journal of Business Ethics",
issn = "0167-4544",
publisher = "Springer Netherlands",
number = "1",
}