The relationship between corporate social responsibility and company's financial performance: the case of Top One Hundred Companies in Malaysia
Since the inception of companies’ activity in Malaysia, the value of corporate social responsibility (CSR) has been an important topic in accounting research. Despite extensive studies on CSR activities in Malaysia, studies investigated the nature of CSR activities in relation to firm financia...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2015
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| Subjects: | |
| Online Access: | http://eprints.uthm.edu.my/1589/1/24p%20MUHAMMAD%20SANI%20ADAMU.pdf http://eprints.uthm.edu.my/1589/2/MUHAMMAD%20SANI%20ADAMU%20WATERMARK.pdf http://eprints.uthm.edu.my/1589/ |
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| Summary: | Since the inception of companies’ activity in Malaysia, the value of corporate
social responsibility (CSR) has been an important topic in accounting research.
Despite extensive studies on CSR activities in Malaysia, studies investigated the
nature of CSR activities in relation to firm financial performance was limited.
Thus, this research investigates and analyzed the current nature of CSR activities
and the relationship between CSR activities and firm financial performance of
Malaysian public listed companies. This research relied on secondary data that
were obtained through the content analysis of published company’s annual reports
for the year 2009 to 2013. Based on purposive sampling method, this study
covered the assessment of the top one hundred companies in Malaysia whose
names and shares were quoted in Malaysia stock exchange (Bursa Malaysia).
Based on literature, four independent variables (Environment, Community,
Workplace and Marketplace) and two dependent variables, Earning per Share
(EPS), and Return on Equity (ROE) have been chosen in this study. Data were
analyzed and interpreted using three types of data analysis; descriptive statistics, t�test and Pearson’s correlation, to investigates the current nature as well as to
analyzed the relationship between CSR activities and firm financial performance.
This research discovered that since 2009 to 2013, Top 100 companies in Malaysia
have been involved in CSR activities especially in the area of Community
activities followed by Environmental activities, Workplace activities and finally,
Marketplace activities. In term of their relationship with financial performance,
this research shows that there is positive relationship between the independent
variables and the dependent variables. It also concluded that, the extent of
innovation and conformity with CSR framework in Malaysia has improved the
quality of financial report that is capable of competing in global scene. |
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