Corporate Social Responsibility Disclosure and Corporate Financial Performance: A Panel Data Analysis

Abstract

This study investigates the relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP) and how CSR activities impact a company's financial performance. We used STATA and a panel regression to analyze the data from sixty French-listed firms from 2012 to 2020. The data was obtained from the DataStream website. The results showed that CSR has a positive and significant impact on CFP. Additionally, companies that engage in socially responsible activities positively impact their financial performance. However, size and leverage have a negative impact on a company's financial performance, while market-to-book ratio, economic growth, and age have a positive impact.