Corporate Social Responsibility and Financial Performance in Korean Retail Firms

@article{ART002350473},
author={ Jeong Hwan Lee and Yun-Sik Kang and 김상수 },
title={Corporate Social Responsibility and Financial Performance in Korean Retail Firms},
journal={유통과학연구},
issn={1738-3110},
year={2018},
volume={16},
number={5},
pages={31-43},
doi={10.15722/jds.16.5.201805.31},
url={http://dx.doi.org/10.15722/jds.16.5.201805.31}

TY - JOUR
AU - Jeong Hwan Lee
AU - Yun-Sik Kang
AU - 김상수
TI - Corporate Social Responsibility and Financial Performance in Korean Retail Firms
T2 - 유통과학연구
PY - 2018
VL - 16
IS - 5
PB - 한국유통과학회
SP - 31-43
SN - 1738-3110
AB - Purpose – We examine how a Korean retail firm’s social responsibility is related to its financial performances. The traditional view of corporation expects a negative relationship, while the stakeholder theory expects a positive one. Research design, data, and methodology – We adopt the ESG score, published by Korean Corporate Governance Service to measure the level of socially responsible activity for the Korean retail firms. The ordinary least square method is adopted to investigate this relationship. The publicly traded retail firms are examined from 2011 to 2016. Results – We find that the total ESG score is negatively related to ROE but shows no statistically significant relationship with ROA and Tobin’s Q value. However, a firm’s environmental score is negatively related with both of ROE and ROA. Its social score is no conclusive relationship with the performance measures. The governance score is negatively related to the value of Tobin’s Q. Conclusions – This paper generally supports the traditional view of corporate theory, especially in terms of ROE. This evidence is not well aligned with the existing study for Korean corporations generally documenting positive relationships. We find almost no empirical evidence supporting the stakeholder theory of corporation in the Korean retail industry,
KW - Corporate Social Responsibility, Financial Performance, Retail Industry
DO - 10.15722/jds.16.5.201805.31
UR - http://dx.doi.org/10.15722/jds.16.5.201805.31
ER -

Jeong Hwan Lee , Yun-Sik Kang and 김상수 (2018). Corporate Social Responsibility and Financial Performance in Korean Retail Firms. 유통과학연구, 16( 5), 31- 43.

Jeong Hwan Lee , Yun-Sik Kang and 김상수 . 2018, “Corporate Social Responsibility and Financial Performance in Korean Retail Firms”, 유통과학연구, vol. 16, no. 5, pp. 31-43. Available from: doi:10.15722/jds.16.5.201805.31

Jeong Hwan Lee Yun-Sik Kang et al. 김상수 “Corporate Social Responsibility and Financial Performance in Korean Retail Firms” 유통과학연구 16.5 pp. 31-43 (2018): 31.

Jeong Hwan Lee , Yun-Sik Kang , 김상수 . Corporate Social Responsibility and Financial Performance in Korean Retail Firms 유통과학연구 [Internet]. 2018; 16( 5), : 31-43. Available from: doi:10.15722/jds.16.5.201805.31

Jeong Hwan Lee , Yun-Sik Kang and 김상수 . “Corporate Social Responsibility and Financial Performance in Korean Retail Firms” 유통과학연구 16, no.5 (2018): 31-43. doi: 10.15722/jds.16.5.201805.31

홈 권호 목록 논문 목록 논문 상세

Corporate Social Responsibility and Financial Performance in Korean Retail Firms

유통과학연구

약어 : JDS

2018, vol.16, no.5, pp.31 - 43

DOI : 10.15722/jds.16.5.201805.31

발행기관 : 한국유통과학회

연구분야 : 경제학

Jeong Hwan Lee¹ , Yun-Sik Kang² , 김상수³

¹Hanyang University

²Kangwon National University

³한국방송통신대학교

인용한 논문 수 : 4 서지 간략 보기

초록

Purpose – We examine how a Korean retail firm’s social responsibility is related to its financial performances. The traditional view of corporation expects a negative relationship, while the stakeholder theory expects a positive one. Research design, data, and methodology – We adopt the ESG score, published by Korean Corporate Governance Service to measure the level of socially responsible activity for the Korean retail firms. The ordinary least square method is adopted to investigate this relationship. The publicly traded retail firms are examined from 2011 to 2016. Results – We find that the total ESG score is negatively related to ROE but shows no statistically significant relationship with ROA and Tobin’s Q value. However, a firm’s environmental score is negatively related with both of ROE and ROA. Its social score is no conclusive relationship with the performance measures. The governance score is negatively related to the value of Tobin’s Q. Conclusions – This paper generally supports the traditional view of corporate theory, especially in terms of ROE. This evidence is not well aligned with the existing study for Korean corporations generally documenting positive relationships. We find almost no empirical evidence supporting the stakeholder theory of corporation in the Korean retail industry,

키워드

Corporate Social Responsibility, Financial Performance, Retail Industry

참고문헌(19)

[학술지] Aupperle, K. E. / 1985 / An empirical examination of the relationship between corporate social responsibility and profitability / Academy of Management Journal 28 (2) : 446 ~ 463
[학술지] Callan, S. J. / 2009 / Corporate financial performance and corporate social performance : An update and reinvestigation / Corporate Social Responsibility and Environmental Management 16 (2) : 61 ~ 78
[학술지] Cho, E. / 2015 / Is CSR Really Profitable? Evidence From Korea / Journal of Applied Business Research 31 (6) : 2167
[학술지] Choi, J. S. / 2010 / Corporate social responsibility and corporate financial performance : Evidence from Korea / Australian Journal of Management 35 (3) : 291 ~ 311
[학술지] Cui, J. / 2016 / Does corporate social responsibility affect information asymmetry? / Journal of Business Ethics : 1 ~ 24
[단행본] Freeman, R. E. / 1984 / Strategic Management: A Stakeholder Approach / Pitman
[단행본] Friedman, M. / 1962 / Capitalism and Freedom / University of Chicago press
[단행본] Friedman, M. / 2007 / The Social Responsibility of Business is to Increase its Profits / Springer
[학술지] 장지인 / 2010 / 기업의 사회적 책임(CSR)과 재무성과와의 관계 / 대한경영학회지 23 (2) : 633 ~ 648
[학술지] 김영식 / 2011 / 기업의 사회적 활동과 재무적 성과의 통합적 고찰 / 대한경영학회지 24 (5) : 2913 ~ 2950
[학술지] Margolis, J. D. / 2003 / Misery loves companies : Rethinking social initiatives by business / Administrative Science Quarterly 48 (2) : 268 ~ 305
[학술지] McGuire, J. B. / 1988 / Corporate social responsibility and firm financial performance / Academy of Management Journal 31 (4) : 854 ~ 872
[학술지] McWilliams, A. / 2000 / Corporate Social Responsibility and Financial Performance : Correlation or Misspecification? / Strategic Management Journal 21 (5) : 603 ~ 609
[학술지] 나영 / 2011 / 기업규모에 따른 CSR활동과 기업가치에 대한 실증분석 / 회계저널 20 (5) : 125 ~ 160
[학술지] John Peloza / 2009 / The Challenge of Measuring Financial Impacts From Investments in Corporate Social Performance / Journal of Management 35 (6) : 1518 ~ 1541
[학술지] Posnikoff, J. F. / 1997 / Disinvestment from South Africa : They did well by doing good / Contemporary Economic Policy 15 (1) : 76 ~ 86
[학술지] Teoh, S. H. / 1999 / The effect of socially activist investment policies on the financial markets : Evidence from the South African boycott / The Journal of Business 72 (1) : 35 ~ 89
[학술지] Waddock, S. A. / 1997 / The corporate social performance-financial performance link / Strategic Management Journal 18 : 303 ~ 319
[학술지] Wright, P. / 1997 / Agency conflict and corporate strategy : The effect of divestment on corporate value / Strategic Management Journal 18 (1) : 77 ~ 83