| Summary: | 碩士 === 國立政治大學 === 財務管理研究所 === 100 === The relationship between corporate social performance (CSP) and corporate financial performance (CFP) is the most popular issue for the past few years. From the perspective of business administration, there is always a question aroused. “As a company investment, is it really make sense to invest corporate social responsibility (CSR) in order to increase the CSP?” In other words, is higher CSP really means higher CFP and creating more firm value? This is the central question that all the business manager will like to know. This is the topic that this research paper wants to study. Besides, this research paper not only try to understand the linkage between CSP and CFP but also try to clarify how CSP affect CFP and create firm value.
The methodology be used in this study is the decomposition of Tobin’s q and two-stage regression in order to avoid potential endogenous problem. After several empirical tests for the potential hypothesis, the empirical evidence shows that a higher CSP can increase CFP and create firm value in the end. Furthermore, the investment of CSR is a strategic thinking for company to preserve their firm value and create new value of the firm. The linkage between CSP and firm value is positive and should be consider as a strategy for company who want value creation.
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