CORPORATE SOCIAL RESPONSIBILITY AND FIRM VALUE: AN EMPIRICAL STUDY OF AN EMERGING ECONOMY

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Abstract

A lot of researches have been done recently on Corporate Social Responsibliity ("CSR"). A lot of studies have been conducted to test how CSR affects firm value and financial perfromance. Results varies from one study to another. Some proved that the realtionship is to be positve, or negative and others proved it to be neutral. The purpose of this research is to evaluate the effect of CSR on firm value and financial performance in Egypt through the application on 33 companies that were listed in the EGX30 in the year 2001, with a timeline of 8 years from 2007 till 2014. Data used in this study is secondary data obtained from the financial statements and annual reports of the egyptian companies and offical online websites. We proved that CSR has a insignifcant negative effect on firm value and a signifcant positive effect on firm’ financial perfromance in Egypt measured by Return on Assets (ROA) and Return on equity (ROE). This research paper is divided into five sections. Section one is the introduction followed by section two the literature review of CSR and its impact on firm value and financial performance. Section three covers the research methodology; section four presents data analysis and finally section five report findings and conclusions of the study.

Keywords: Corporate Social Responsibility, Firm Value, Financial Performance, Emerging Economy

How to cite this paper: Hafez, H. M. (2016). Corporate social responsibility and firm value: an empirical study of an emerging economy. Journal of Governance and Regulation, 5(4), 40-53. https://doi.org/10.22495/jgr_v5_i4_p3