Abstract
This article sets out to undertake a thorough, point-by-point examination of the theory postulated by Campbell (2007), in which an attempt is made to specify the conditions under which corporations may or may not act in socially responsible ways. In order to ensure the overall reliability of our study, and to attempt to provide a new understanding of, and greater insights into, whether corporate social responsibility (CSR) is affected by financial and institutional variables, we empirically investigate a total of 520 financial firms in 34 countries, between the years 2003 and 2005. Our empirical findings are: (i) firms with larger size are more CSR minded, and the financial performance and CSR are not related; (ii) firms would actually act in more socially responsible ways to enhance their competitive advantages when the market competitiveness is more intense; (iii) financial firms in countries with stronger levels of legal enforcement tend to engage in more CSR activities; however, interestingly and rather strikingly, those firms in countries with stronger shareholder rights tend to engage in less CSR activities; and (iv) self-regulation within the financial industry has a significantly positive effect on CSR, with firms being found to act in more socially responsible ways in those countries which have more cooperative employer–employee relations, higher quality management schools, and a better macroeconomic environment.
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Hsiang-Lin Chih is the Chairperson and Professor of Department of Banking and Cooperative Management at National Taipei University, Taiwan. His current research focuses on corporate social responsibility, corporate governance, and financial institutions management. His writings have appeared in Journal of Quantitative and Financial Analysis, Journal of Banking and Finance, Corporate Governance: An International Review, Journal of Business Ethics, Academia Economic Papers and in other journals. He received his Ph.D. from the National Taiwan University in 1998.
Hsiang-Hsuan Chih is currently the Associate Professor of Department of Finance in National Dong Hwa University in Taiwan. Her current research focuses on corporate finance, behavioral finance and corporate governance. Her recent publications include Journal of Management, Review of Securities and Futures Markets, and Review of Financial Risk Management. She received her Ph.D. degree from National Central University in 2003.
Tzu-Yin Chen is a research assistant for the Department of Banking and Cooperative Management at National Taipei University, Taiwan. Her research focuses on corporate social responsibility and financial institutions management. She received her master degree from the Department of Cooperative Economics, College of Business, National Taipei University, Taiwan.
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Chih, HL., Chih, HH. & Chen, TY. On the Determinants of Corporate Social Responsibility: International Evidence on the Financial Industry. J Bus Ethics 93, 115–135 (2010). https://doi.org/10.1007/s10551-009-0186-x
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DOI: https://doi.org/10.1007/s10551-009-0186-x