Impact of Corporate Social Responsibility on Corporate Financial Performance: Evidence from CSE Enlisted Manufacturing Companies in Sri Lanka

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dc.contributor.authorJayasundara, K.P.D.C.M.
dc.contributor.authorGunaratne, Y.M.C.
dc.contributor.authorDe Silva, P.O.
dc.date.accessioned2021-01-27T10:29:47Z
dc.date.available2021-01-27T10:29:47Z
dc.date.issued2020
dc.description.abstractCorporate Social Responsibility (CSR) is considered as an approach that contributes to sustainable development by delivering economic, social, and environmental benefits to all stakeholders. However, there is no consensus in the literature on the relationship between CSR and financial performance of corporations. Hence this study endeavored to explore the impact of CSR on corporate financial performance referring to the manufacturing companies listed in the Colombo Stock Exchange in Sri Lanka. The Stakeholder Perspective Theory provides valid insights to develop a CSR scale and it was used to measure CSR whereas the Return on Assets and Return on Equity were used as the proxies for the Financial Performance of corporations. Further, the risk ascertained through the Debt-to-Equity ratio considered as the control variable. The sample of this study consisted of ten manufacturing companies listed in the Colombo Stock Exchange and the sample period spaned for five years from 2011 – 2018. Accordingly, the study used 50 firm-year observations for the analysis and this study was based on secondary data and quantitative approach. Descriptive statistics, correlation coefficient, and panel data regression analysis techniques were used to accomplish the objectives of the study. The results revealed that CSR had a significant positive impact on the corporate financial performance of listed manufacturing companies in Sri Lanka. Moreover, it revealed that the control variable of risk had a significant negative relationship with Return on Assets while an insignificant relationship with Return on Equity. This study recommends the companies to maintain CSR activities at optimum level for all stakeholders as it leads to improve financial performance. . Keywords: Corporate financial performance, Corporate social responsibility, Colombo Stock Exchange, Return on assets, Return on equityen_US
dc.identifier.isbn9789550481293
dc.identifier.urihttp://www.erepo.lib.uwu.ac.lk/bitstream/handle/123456789/5680/proceeding_oct_08-153.pdf?sequence=1&isAllowed=y
dc.language.isoenen_US
dc.publisherUva Wellassa University of Sri Lankaen_US
dc.relation.ispartofseries;International Research Conference
dc.subjectBusiness Managementen_US
dc.subjectMarketingen_US
dc.subjectFinancial Managementen_US
dc.titleImpact of Corporate Social Responsibility on Corporate Financial Performance: Evidence from CSE Enlisted Manufacturing Companies in Sri Lankaen_US
dc.title.alternativeInternational Research Conference 2020en_US
dc.typeOtheren_US
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