Based on the stakeholder theory, this study investigates the relationship between corporate social responsibility (CSR) and financial performance in the food and beverage industry in China. The study adopts a multivariate regression approach and considered different dimensions of CSR which are stakeholder-oriented, customer-oriented, employees-oriented, society-oriented, and environment-oriented CSR. The study used panel data of 577 samples from 64 food and beverage companies for the period of 2010 to 2019, and the results show that there is a positive and significant relationship between the various dimensions of CSR and financial performance, which validates the stakeholder theory. The study makes a significant contribution to knowledge in that it enriches the debate of CSR and financial performance in a significant industry (food and beverage) in an emerging economy (China). An implication for society and government might be to enact policies and incentives as well as adopt moral suasion to encourage firms, irrespective of industry, to consider the needs of all stakeholders in business decisions and be more socially responsible.
|Journal||International Journal of Finance and Economics|
|Publication status||Submitted - 2020|
- Financial Performance
- Stakeholder Theory
- Fixed Effects