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The present paper empirically examines the relation between corporate social responsibility (CSR) practices and company financial performance (CFP) for firms listed on the Bucharest Stock Exchange. Likewise, the paper analyzes the CSR policies adopted by the companies as CSR practices towards six types of stakeholders that influence the CFP. Using principal component analysis, we developed a CSR index and several specific indices for CSR practices. By estimating cross-sectional regression models, our study provides support for a positive link between CSR and CFP, when companies implement CSR policies regarding employees, environmental protection, and ethics as social practices. Further, empirical findings show that companies responsive to the CSR concept and those considering international standards and regulations for quality products and services in their business strategy enhance CFP.
Liliana Nicoleta Simionescu; Dalina Dumitrescu. Empirical Study towards Corporate Social Responsibility Practices and Company Financial Performance. Evidence for Companies Listed on the Bucharest Stock Exchange. Sustainability 2018, 10, 3141 .
AMA StyleLiliana Nicoleta Simionescu, Dalina Dumitrescu. Empirical Study towards Corporate Social Responsibility Practices and Company Financial Performance. Evidence for Companies Listed on the Bucharest Stock Exchange. Sustainability. 2018; 10 (9):3141.
Chicago/Turabian StyleLiliana Nicoleta Simionescu; Dalina Dumitrescu. 2018. "Empirical Study towards Corporate Social Responsibility Practices and Company Financial Performance. Evidence for Companies Listed on the Bucharest Stock Exchange." Sustainability 10, no. 9: 3141.
The increased attention of companies’ managers towards the benefits of corporate social responsibility (CSR) has led many corporations to integrate CSR practices into their business strategy. Consequently, the literature has examined the relation between CSR and firm performance. Although CSR is adopted by companies on a voluntary basis, more heated discussions regarding the effects of CSR on company financial performance has lead various authors to different results. This chapter empirically analyzes the CSR effects on company financial performance in developing countries, especially Romania. As empirical method we employed univariate analysis to investigate whether the company financial performance of companies which implement CSR (considered experiment group) is higher than non-CSR companies (considered control group). T-test is used to find out if there is any statistically difference in mean company financial performance between ROA, ROE, ROS, PBV, PER, and EPS of experiment group and control group. The sample used included 68 companies listed on the Bucharest Stock Exchange (BSE) for the 2011 fiscal year. The empirical research reveals that there is not a significant difference in mean company financial performance between CSR companies and non-CSR companies.
Dalina Dumitrescu; Liliana Simionescu. Corporate Social Responsibility (CSR) and Company Financial Performance: Empirical Evidence from Listed Companies in Romania. Financial Environment and Business Development 2016, 677 -689.
AMA StyleDalina Dumitrescu, Liliana Simionescu. Corporate Social Responsibility (CSR) and Company Financial Performance: Empirical Evidence from Listed Companies in Romania. Financial Environment and Business Development. 2016; ():677-689.
Chicago/Turabian StyleDalina Dumitrescu; Liliana Simionescu. 2016. "Corporate Social Responsibility (CSR) and Company Financial Performance: Empirical Evidence from Listed Companies in Romania." Financial Environment and Business Development , no. : 677-689.
This chapter describes the ways in which CSR practices can develop and strengthen company’s relation with their key stakeholders in order to create both social and financial value to the companies. Using companies CSR reports, current study identifies theoretically for the case of Romania the mechanisms and the important contingencies in whether the CSR practices are considered by stakeholders authentically and effective and if these practices persist in time. The importance of relation between company and stakeholders through CSR practices is due because of the long term success of the company as there are outside immediate profit maximization goals. We conclude from companies CSR reports and websites that in order to achieve long term financial performance, they (the companies) engage in specific CSR activities as social activities. Thus, companies select ‘the right’ social activities turning them into companies’ strategies addressed to specific types of stakeholders, namely to those are trying to strengthen their relation with.
Liliana Simionescu; Dalina Dumitrescu. Corporate Social Responsibility (CSR) and Stakeholders Management. Financial Environment and Business Development 2016, 637 -645.
AMA StyleLiliana Simionescu, Dalina Dumitrescu. Corporate Social Responsibility (CSR) and Stakeholders Management. Financial Environment and Business Development. 2016; ():637-645.
Chicago/Turabian StyleLiliana Simionescu; Dalina Dumitrescu. 2016. "Corporate Social Responsibility (CSR) and Stakeholders Management." Financial Environment and Business Development , no. : 637-645.
Our objective is to determine whether one can derive returns in excess of a chosen benchmark by using readily available information such as past prices and earnings. A key aspect of our method is that we test the estimation results in conjunction with the portfolio optimization process that incorporates those same estimates, as they are generated, into a rationally-diversified portfolio. We rely on a sampling process that randomly pairs companies from a pool of available estimates for any given date, coupled with the Black–Litterman optimization algorithm, in order to derive a distribution of average returns for the 2006–2014 period, using data available for companies listed at Bucharest stock Exchange. We find that even when using information such as earnings and past prices, one can still improve the performance of a given benchmark, both on an absolute and risk-adjusted metrics. We show how the variability of the results coming from the calibration of the Black–Litterman model itself can easily be mitigated by carefully selecting the model’s parameters.
Andrei Anghel; Dallina Dumitrescu; Cristiana Tudor. Using Past Prices and Earnings to Derive Abnormal Returns over a Stock Index. Eurasian Business and Economics Perspectives 2016, 627 -635.
AMA StyleAndrei Anghel, Dallina Dumitrescu, Cristiana Tudor. Using Past Prices and Earnings to Derive Abnormal Returns over a Stock Index. Eurasian Business and Economics Perspectives. 2016; ():627-635.
Chicago/Turabian StyleAndrei Anghel; Dallina Dumitrescu; Cristiana Tudor. 2016. "Using Past Prices and Earnings to Derive Abnormal Returns over a Stock Index." Eurasian Business and Economics Perspectives , no. : 627-635.
Dalina Dumitrescu; Liliana Nicoleta Simionescu; Angela Roman. ENVIRONMENTAL RESPONSIBILITY AND COMPANY FINANCIAL PERFORMANCE: THE CASE OF ROMANIAN MANUFACTURING INDUSTRY. Environmental Engineering and Management Journal 2015, 14, 2947 -2957.
AMA StyleDalina Dumitrescu, Liliana Nicoleta Simionescu, Angela Roman. ENVIRONMENTAL RESPONSIBILITY AND COMPANY FINANCIAL PERFORMANCE: THE CASE OF ROMANIAN MANUFACTURING INDUSTRY. Environmental Engineering and Management Journal. 2015; 14 (12):2947-2957.
Chicago/Turabian StyleDalina Dumitrescu; Liliana Nicoleta Simionescu; Angela Roman. 2015. "ENVIRONMENTAL RESPONSIBILITY AND COMPANY FINANCIAL PERFORMANCE: THE CASE OF ROMANIAN MANUFACTURING INDUSTRY." Environmental Engineering and Management Journal 14, no. 12: 2947-2957.