| Summary: | 碩士 === 逢甲大學 === 合作經濟學所 === 99 === Academic research on the relationship between corporate social performance (CSP) and corporate financial performance (CFP) has been going on for several decades. Nevertheless, the link between corporate social performance and corporate financial performance has not been fully established. This study examines the causal relationship between corporate social responsibility and corporate financial performance. Using a more sophisticated econometric technique known as Panel Granger non-causality test developed by Hurlin (2008) containing a panel data of 147 companies of the S&P 500 index during the 1992-2008 periods. Empirical results from the Panel Granger non-causality tests show that the combination of the two variables pairs are negatively related and the relationship is bidirectional, indicating that socially responsibility companies provide superior financial performance and that greater financial performance provide the socially responsible investment. According to above results, we conclude that socially responsible corporate behavior will not be conflict with companies’ prospects for profitability, on the contrary, create new business opportunities and further higher its profits.
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