CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE: THE SPANISH CASE

The enormous interest aroused by corporate social responsibility both in the academic and the business worlds forms the background for this study. Its objective is to analyze the relationship between corporate social responsibility and financial performance in view of the debate in the literature on the subject. The study focuses on a sample of Spanish companies taken from the IBEX 35 stock market index, using panel data methodology, which offers advantages in comparison to methodologies used in other studies. We analyzed the period from 2003 to 2010. Our findings suggest that there is no obvious relationship between corporate social responsibility and financial results, at least in the case of Spain.

KEYWORDS:
Corporate social responsibility; panel data; performance; Spanish firms; IBEX 35

Variables	N	Mean	Std.Dev	%_a	Max	Min
ROA (%)	208	7.68	9.78		83.16	-9.41
ROE (%)	208	17.88	23.54		110.26	-159.64
CSR	208	1.13	0.62		2.17	0
Size	208	9.387,326	1.63e+07		9.31e+07	264.142
Enersector				23.06
Indusector				42.31
Consusector				11.54
Servsector				11.54
Tecnolsector				11.54

Variables	1	2	3	4	5	6	7
1 CSR	1.00
2 Size	0.45^ p < 0,01	1.00
3 Enersec	0.42^* * p 0,05	0.27^* * p 0,05	1.00
4 Indusec	-0.46^* * p 0,05	-0.30^* * p 0,05	-0.47^* * p 0,05	1.00
5 Consusec	-0.12	-0.12^* * p 0,05	-0.2^* * p 0,05	-0.31^* * p 0,05	1.00
6 Servsec	0.10	-0.10	-0.2^* * p 0,05	-0.31^* * p 0,05	-0.13	1.00
7 Tecnsec	0.17^* * p 0,05	0.4^* * p 0,05	-0.2^* * p 0,05	-0.31^* * p 0,05	-0.13	-0.13	1.00

	Model 1 Dependent variable ROA
Independent variables	β	p-value
ROA (t-1)	0.42	(0.01)
CSR (t-1)	1.02	(0.58)
Size	-0.94	(0.52)
Indusec	-2.31	(3.72)
Consusec	3.52	(0.28)
Servsec	-1.89	(3.81)
m1	-2.19	(0.03)
m2	0.94	(0.35)
Hansen test	5.41	(1.00)

	Model 2 Dependent variable ROE
Independent variables	β	p-value
ROE (t-1)	0.54	(0.004)
CSR (t-1)	-10.18	(0.4)
Size	0.13	(0.96)
Indusec	-7.12	(0.56)
Consusec	7.42	(0.58)
Servsec	-8.23	(0.69)
Tecnsec	13.87	(0.86)
m1	-2.30	(0.02)
m2	1.05	(0.29)
Hansen test	6.43	(1.00)

Fundação Getulio Vargas, Escola de Administração de Empresas de S.Paulo Av 9 de Julho, 2029, 01313-902 S. Paulo - SP Brasil, Tel.: (55 11) 3799-7999, Fax: (55 11) 3799-7871 - São Paulo - SP - Brazil
E-mail: rae@fgv.br

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[TFN01] Note . %_a of firms belonging to each sector