Abstract
Using two national culture dimensions, we show that the influence of firms’ 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’s impact is dependent upon the culture of the country where the firm resides.
Original language | English (US) |
---|---|
Journal | Journal of Business Ethics |
DOIs | |
State | Accepted/In press - 2020 |
Keywords
- Corporate social performance
- Cultural values
- Firm performance
ASJC Scopus subject areas
- Business and International Management
- Business, Management and Accounting(all)
- Arts and Humanities (miscellaneous)
- Economics and Econometrics
- Law