CSR & financial performance: Facing methodological and modeling issues commentary paper to the eponymous FRL article collection


As a commentary paper to the FRL Article Collection on the relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP), the present essay addresses and investigates in depth the heterogeneity of results from existing empirical studies. After an historical excursus on the CSP-CFP link, it emphasizes the need to pay attention to theoretical inaccuracies, endogeneity, sample-selection and aggregation bias as well as to the risk of overinterpretation. Finally, it provides researchers with a documented statement to avoid the theoretical, methodological and technical flaws that have jeopardized antecedent works and shares a range of rationalized, valuable and practicable solutions.

Authors: Maria Giuseppina Bruna, Béchir Ben Lahouel

Journal: Finance Research Letters

Link: https://doi.org/10.1016/j.frl.2021.102036

Volume: 44

Page: 102036

Year: 2022