Journal of Advances in Economics and Finance

Download PDF (441 KB) PP. 33 - 44 Pub. Date: May 8, 2018

DOI: 10.22606/jaef.2018.32003

• Jiayi Chen^*
  Adam Smith Business School, University of Glasgow, Glasgow, United Kingdom

This study revisits a classic yet still an intriguing question regarding the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP). To explore the potential influence factor between the mentioned two factor, it is necessary to take internal control quality (ICQ) into account. The relation will be achieved by testing the panel data of 81 listed Chinese food and beverage industry from 2011 to 2015. There are three estimation hypotheses concerning three relations: the positive association between ICQ and CFP, the positive relationship between CSR and CFP, and finally the intermediate effect of CSR on the ICQ and CFP. Overall, results demonstrate that both ICQ and CSR have a significant positive relationship with CFP based on a series indexes. Moreover, the mediator effect has been mainly verified by the regression model according to the weight change of ICQ in the model.

ICQ; CSR; CFP; intermediate effect

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