Corporate Social Performance, Stakeholder Coalitions, Corporate Governance and Performance

46 Pages Posted: 19 Mar 2009 Last revised: 6 Apr 2016

Punit Arora

Syracuse University

Milena T. Petrova

Bocconi University

Date Written: June 2009

Abstract

We examine the relationship between investment in different corporate social domains, corporate governance and firm performance. We demonstrate that policies with respect to different corporate social performance domains are related differently to financial performance. Our results indicate that proactive policies with respect to employees and diversity are the policies most strongly related to firm’s financial performance. In addition, we show that simultaneous employee and environment policies help firms further improve their financial performance We also reveal that certain corporate social policies can reduce the negative impact of anti-takeover protection measures and chairman duality. These results are important since they imply that corporate governance and social performance cannot be studied in isolation.

Keywords: corporate social performance, corporate governance, financial performance

JEL Classification: G34

Suggested Citation

Arora, Punit and Petrova, Milena T., Corporate Social Performance, Stakeholder Coalitions, Corporate Governance and Performance (June 2009). Available at SSRN: https://ssrn.com/abstract=1364993 or http://dx.doi.org/10.2139/ssrn.1364993

Punit Arora

Syracuse University ( email )

900 S. Crouse Avenue
Syracuse, NY 13244-2130
United States

Milena T. Petrova (Contact Author)

Bocconi University ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

Paper statistics

Downloads
308
Rank
79,461
Abstract Views
1,093