CSR, financial performance and risk: Does it add up for mid-caps?

Conference item


Conway, E. 2017. CSR, financial performance and risk: Does it add up for mid-caps? British Academy of Management.
AuthorsConway, E.
Abstract

The purpose of this paper is to establish whether there is a link between Corporate Social Responsibility (CSR) scores, Corporate Financial Performance (CFP) and risk in US mid-cap firms. Whilst much previous work has been carried out on large-cap firms, the mid-cap sector has been neglected in academic literature and by the investor/analyst world. The CSR scores from a sample of 365 large-cap, 279 mid-cap and 356 small-cap firms from the US S&P stock indices were regressed against a range of market-based, accounting-based and risk-based variables to assess whether there was any correlation between them. Whilst positive findings were made for the large-cap and small-cap firms, there was little evidence of any such relationship for mid-cap firms. These findings fill a gap in the literature on a much neglected but unique market sector, which is of importance to those who work within that sector, in that they may gain a better understanding of the implications of their unique environment, but also for investors and analysts alike who have hitherto largely ignored the mid-cap sector.

The purpose of this paper is to establish whether there is a link between Corporate Social Responsibility (CSR) scores, Corporate Financial Performance (CFP) and risk in US mid-cap firms. Whilst much previous work has been carried out on large-cap firms, the mid-cap sector has been neglected in academic literature and by the investor/analyst world.

The CSR scores from a sample of 365 large-cap, 279 mid-cap and 356 small-cap firms from the US S&P stock indices were regressed against a range of market-based, accounting-based and risk-based variables to assess whether there was any correlation between them.

Whilst positive findings were made for the large-cap and small-cap firms, there was little evidence of any such relationship for mid-cap firms.

These findings fill a gap in the literature on a much neglected but unique market sector, which is of importance to those who work within that sector, in that they may gain a better understanding of the implications of their unique environment, but also for investors and analysts alike who have hitherto largely ignored the mid-cap sector.

KeywordsCorporate social responsibility; Corporate financial performance; Mid-caps; Size
Year2017
PublisherBritish Academy of Management
Web address (URL)http://hdl.handle.net/10545/621834
http://creativecommons.org/licenses/by-nc-nd/4.0/
hdl:10545/621834
ISBN9780995641303
File
File Access Level
Open
File
File Access Level
Open
Publication datesSep 2017
Publication process dates
Deposited06 Sep 2017, 08:30
ContributorsUniversity of Derby
Permalink -

https://repository.derby.ac.uk/item/94x6v/csr-financial-performance-and-risk-does-it-add-up-for-mid-caps

Download files


File
license.txt
File access level: Open

  • 14
    total views
  • 1
    total downloads
  • 0
    views this month
  • 0
    downloads this month

Export as

Related outputs

Integrated reporting
Conway, E., Robertson, Fiona and Ugiagbe-Green, Iwi 2021. Integrated reporting. in: Palgrave.
Construction And factorial validation of a short version of the Academic Motivation Scale
Kotera, Y., Conway, E. and Green, Pauline 2021. Construction And factorial validation of a short version of the Academic Motivation Scale. British Journal of Guidance & Counselling. https://doi.org/10.1080/03069885.2021.1903387
Ethical judgement and intent in business school students: the role of the psyche?
Conway, E. and Kotera, Y. 2020. Ethical judgement and intent in business school students: the role of the psyche? International Journal of Ethics Education. https://doi.org/10.1007/s40889-020-00094-z
Did removing prudence from the Conceptual Framework impact accounting conservatism?
Conway, E. 2020. Did removing prudence from the Conceptual Framework impact accounting conservatism? International Journal of Banking Accounting and Finance. https://doi.org/10.1504/IJBAAF.2020.110309
To agree or disagree? An analysis of CSR ratings firms
Conway, E. 2019. To agree or disagree? An analysis of CSR ratings firms. Social and Environmental Accountability Journal. https://doi.org/10.1080/0969160X.2019.1613248
Quantitative impacts of mandatory integrated reporting
Conway, E. 2019. Quantitative impacts of mandatory integrated reporting. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-08-2018-0066
Technology challenges in accounting and finance.
Crookes, Elizabeth and Conway, E. 2018. Technology challenges in accounting and finance. in: Palgrave Macmillan.
Should we expect exemplary integrated reporting to increase organisational ESG ratings?
Conway, E. 2018. Should we expect exemplary integrated reporting to increase organisational ESG ratings? in: Springer.
Ethical judgement in UK business students: relationship with motivation, self-compassion and mental health.
Kotera, Y., Conway, E. and Van Gordon, William 2018. Ethical judgement in UK business students: relationship with motivation, self-compassion and mental health. International Journal of Mental Health and Addiction. https://doi.org/10.1007/s11469-018-0034-2
The future of accountancy – beyond the numbers.
Conway, E. 2018. The future of accountancy – beyond the numbers. in: Palgrave Macmillan.
Technology challenges in accounting and finance.
Crookes, Elizabeth and Conway, E. 2018. Technology challenges in accounting and finance. in: Springer.
Sustainability, the triple bottom line and corporate social responsibility.
Conway, E. 2018. Sustainability, the triple bottom line and corporate social responsibility. in: Palgrave Macmillan.
Mental health of UK university business students: Relationship with shame, motivation and self-compassion
Kotera, Y., Conway, E. and Van Gordon, William 2018. Mental health of UK university business students: Relationship with shame, motivation and self-compassion. Journal of Education for Business. https://doi.org/10.1080/08832323.2018.1496898
Does good integrated reporting improve corporate social responsibility?
Conway, E. 2017. Does good integrated reporting improve corporate social responsibility?
A study of adoption rates and financial effects of IFRS for SMEs
Conway, E. 2017. A study of adoption rates and financial effects of IFRS for SMEs.
Transition to a low carbon economy: an SME perspective.
Baranova, Polina and Conway, E. 2017. Transition to a low carbon economy: an SME perspective. in: Palgrave Macmillan.
The transition to a low carbon economy: a call for collaborative action towards the ‘new normal’.
Conway, E., Paterson, Fred and Baranova, Polina 2017. The transition to a low carbon economy: a call for collaborative action towards the ‘new normal’. in: Palgrave Macmillan.
Corporate social responsibility in French listed companies – good for performance, poor for risk?
Conway, E. 2017. Corporate social responsibility in French listed companies – good for performance, poor for risk? Centre for Social and Environmental Accounting Research.
Measuring carbon: An organisational management perspective.
Conway, E. 2017. Measuring carbon: An organisational management perspective. in: Palgrave Macmillan.
Engaging small and medium-sized enterprises (SMEs) in the low carbon agenda
Conway, E. 2015. Engaging small and medium-sized enterprises (SMEs) in the low carbon agenda. Energy, Sustainability and Society. https://doi.org/10.1186/s13705-015-0060-x
Assessing sustainability support to small and medium sized enterprises (SMEs)
Conway, E. 2014. Assessing sustainability support to small and medium sized enterprises (SMEs). International Journal of Performability Engineering.
Does corporate social responsibility pay?
Conway, E. 2014. Does corporate social responsibility pay? Critical Perspectives on Business Management.
Is UK Financial Reporting Becoming Less Prudent?
Conway, E. 2014. Is UK Financial Reporting Becoming Less Prudent? European Journal of Economics and Management.