Impact of corporate social responsibility and corporate governance on the performance of nonfinancial companies

<p dir="ltr">This research paper focuses on the growing importance of corporate social responsibility (CSR) in the business world, particularly in the Gulf Cooperation Council (GCC) region. The main aim is to bridge the gap by assessing the impact of CSR and corporate governance on f...

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Main Author: Omnia Ahmed (22563962) (author)
Other Authors: Bashar Abukhalaf (21488780) (author), Antoine B. Awad (21591401) (author)
Published: 2023
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author Omnia Ahmed (22563962)
author2 Bashar Abukhalaf (21488780)
Antoine B. Awad (21591401)
author2_role author
author
author_facet Omnia Ahmed (22563962)
Bashar Abukhalaf (21488780)
Antoine B. Awad (21591401)
author_role author
dc.creator.none.fl_str_mv Omnia Ahmed (22563962)
Bashar Abukhalaf (21488780)
Antoine B. Awad (21591401)
dc.date.none.fl_str_mv 2023-12-15T03:00:00Z
dc.identifier.none.fl_str_mv 10.22495/cgobrv7i4sip15
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Impact_of_corporate_social_responsibility_and_corporate_governance_on_the_performance_of_nonfinancial_companies/30256723
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Banking, finance and investment
Strategy, management and organisational behaviour
Economics
Applied economics
Econometrics
CSR
Corporate Governance
Performance
Leverage
Size of the Company
Panel Regression
dc.title.none.fl_str_mv Impact of corporate social responsibility and corporate governance on the performance of nonfinancial companies
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p dir="ltr">This research paper focuses on the growing importance of corporate social responsibility (CSR) in the business world, particularly in the Gulf Cooperation Council (GCC) region. The main aim is to bridge the gap by assessing the impact of CSR and corporate governance on financial performance. Ultimately, this paper emphasizes the strategic importance of CSR for improving financial performance and promoting trustworthiness and public image. This paper applied the ordinary least squares (OLS) and panel regressions (fixed and random) to investigate the impact of CSR, board size, independent directors, company size, and leverage as independent variables on the financial performance as the dependent variable (return on assets — ROA). The data were collected from Refinitiv Eikon platform for 210 listed nonfinancial companies for the last ten years (2013–2022). The results suggested that the higher the company’s involvement in CSR, the more the number of board members and the more independent directors the higher the performance. In addition, the higher the leverage in the GCC the less is the profitability of firms. Finally, the larger the company the better is the performance. Such results imply that more board of directors should be hired and increase compliance with the CSR principles to achieve better performance.</p><h2>Other Information</h2><p dir="ltr">Published in: Corporate Governance and Organizational Behavior Review<br>License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.22495/cgobrv7i4sip15" target="_blank">https://dx.doi.org/10.22495/cgobrv7i4sip15</a></p>
eu_rights_str_mv openAccess
id Manara2_ac9db0181e69ef2f01dd28ab4c35d3e2
identifier_str_mv 10.22495/cgobrv7i4sip15
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/30256723
publishDate 2023
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rights_invalid_str_mv CC BY 4.0
spelling Impact of corporate social responsibility and corporate governance on the performance of nonfinancial companiesOmnia Ahmed (22563962)Bashar Abukhalaf (21488780)Antoine B. Awad (21591401)Commerce, management, tourism and servicesBanking, finance and investmentStrategy, management and organisational behaviourEconomicsApplied economicsEconometricsCSRCorporate GovernancePerformanceLeverageSize of the CompanyPanel Regression<p dir="ltr">This research paper focuses on the growing importance of corporate social responsibility (CSR) in the business world, particularly in the Gulf Cooperation Council (GCC) region. The main aim is to bridge the gap by assessing the impact of CSR and corporate governance on financial performance. Ultimately, this paper emphasizes the strategic importance of CSR for improving financial performance and promoting trustworthiness and public image. This paper applied the ordinary least squares (OLS) and panel regressions (fixed and random) to investigate the impact of CSR, board size, independent directors, company size, and leverage as independent variables on the financial performance as the dependent variable (return on assets — ROA). The data were collected from Refinitiv Eikon platform for 210 listed nonfinancial companies for the last ten years (2013–2022). The results suggested that the higher the company’s involvement in CSR, the more the number of board members and the more independent directors the higher the performance. In addition, the higher the leverage in the GCC the less is the profitability of firms. Finally, the larger the company the better is the performance. Such results imply that more board of directors should be hired and increase compliance with the CSR principles to achieve better performance.</p><h2>Other Information</h2><p dir="ltr">Published in: Corporate Governance and Organizational Behavior Review<br>License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.22495/cgobrv7i4sip15" target="_blank">https://dx.doi.org/10.22495/cgobrv7i4sip15</a></p>2023-12-15T03:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.22495/cgobrv7i4sip15https://figshare.com/articles/journal_contribution/Impact_of_corporate_social_responsibility_and_corporate_governance_on_the_performance_of_nonfinancial_companies/30256723CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/302567232023-12-15T03:00:00Z
spellingShingle Impact of corporate social responsibility and corporate governance on the performance of nonfinancial companies
Omnia Ahmed (22563962)
Commerce, management, tourism and services
Banking, finance and investment
Strategy, management and organisational behaviour
Economics
Applied economics
Econometrics
CSR
Corporate Governance
Performance
Leverage
Size of the Company
Panel Regression
status_str publishedVersion
title Impact of corporate social responsibility and corporate governance on the performance of nonfinancial companies
title_full Impact of corporate social responsibility and corporate governance on the performance of nonfinancial companies
title_fullStr Impact of corporate social responsibility and corporate governance on the performance of nonfinancial companies
title_full_unstemmed Impact of corporate social responsibility and corporate governance on the performance of nonfinancial companies
title_short Impact of corporate social responsibility and corporate governance on the performance of nonfinancial companies
title_sort Impact of corporate social responsibility and corporate governance on the performance of nonfinancial companies
topic Commerce, management, tourism and services
Banking, finance and investment
Strategy, management and organisational behaviour
Economics
Applied economics
Econometrics
CSR
Corporate Governance
Performance
Leverage
Size of the Company
Panel Regression