Academy of Management Annual Meeting Proceedings includes abstracts of all papers and symposia presented at the annual conference, plus 6-page abridged versions of the “Best Papers” accepted for inclusion in the program (approximately 10%). Papers published in the Proceedings are abridged because presenting papers at their full length could preclude subsequent journal publication. Please contact the author(s) directly for the full papers.


    In the empirical research examining the link between Corporate Social Performance (CSP) and Corporate Financial Performance (CFP), hardly any studies have properly accounted for the strategic nature of social and financial performance decisions. Even more, most research has focused on American firms and has used cross sectional data. Unfortunately, very few studies have empirically examined this link with firms across several countries and with longitudinal data, which greatly enhance causal inference. In this paper we try to fill this gap by initially justifying CSP as a strategic decision and hence as endogenous. Then, we empirically test the impact of CSP on CFP with a panel of 224 firms across several European and American countries, over a period of 6 years. We employ SAM’s ratings for the measurement of CSP and the GMM system estimator to properly account for endogeneity. Our results show that the link between CSP and CFP is neutral. Hence, we argue that CSP is not a causal factor of CFP but should rather be viewed as an indicator of overall ‘quality management’.

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