The impact of corporate social responsibility on corporate performance in different industries evidence from Taiwan

Abstract

The purpose of this study is to analyze whether there are differences in the impact of corporate social responsibility on its financial performance and stock performance in different industries. The research period is from 2016 to 2018. The samples are selected from the corporate social responsibility award-winning companies selected by Commonwealth Magazine and Vision Magazine, and the financial information comes from Taiwan Economic News (TEJ). The empirical results show that traditional heavy industries have been established for a long time and the equipment is relatively old, so it needs to pay a relatively high cost to improve. Therefore, in this type of industry, corporate social responsibility has a negative impact on its financial impact, and even if it is a reputation It has won the evaluation of the public, but its stock characteristics are not easy to fluctuate, so the impact on its stock performance is not significant. On the contrary, in the other two industries, corporate social responsibility will not burden its financial performance, but will positively help its stock performance. Among them, in the electronics industry, corporate social responsibility will positively help its financial performance. It may be that this type of industry has a relatively high bargaining power for products and relatively advanced technology, so it can transfer the cost of corporate responsibility invested to the selling price of the product.