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Corporate Social and Financial Performance: The Role of Size,Industry, Risk,R&D and Advertising Expenses as Control Variables
Authors:MARGARET L ANDERSEN  JOHN S DEJOY
Abstract:This article investigates the role of commonly specified control variables in moderating the relationship between corporate social performance (CSP) and corporate financial performance (CFP). In addition, there are separate measures for positive (strengths) social actions, and for negative (concerns) social actions. The results support the positive relationship between CSP and CFP. The best model, as determined using factorial analysis of variance, is one which has the following control variables: size, industry, risk, and research and development expenditures. In examining the CSP/CFP relationship, researchers must control for these variables, in order to properly specify the model.
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