Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212345 
Year of Publication: 
2016
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 7/2016
Publisher: 
Bank of Finland, Helsinki
Abstract: 
This study treats firm productivity as an accumulation of productive intangibles and posits that stakeholder engagement associated with better corporate social performance helps develop such intangibles. We hypothesize that because shareholders factor improved productive efficiency into stock price, productivity mediates the relationship between corporate social and financial performance. Furthermore, we argue that key stakeholders' social considerations are more valuable for firms with higher levels of discretionary cash and income stream uncertainty. Therefore, we hypothesize that those two contingencies moderate the mediated process of corporate social performance with financial performance. Our analysis, based on a comprehensive longitudinal dataset of U.S. manufacturing firms from 1992 to 2009, lends strong support for these hypotheses. In short, this paper uncovers a productivity-based, context-dependent mechanism underlying the relationship between corporate social performance and financial performance.
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-102-3
Document Type: 
Working Paper

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