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Corporate social responsibility performance, financial distress and firm life cycle: evidence from Australia
Author(s) -
AlHadi Ahmed,
Chatterjee Bikram,
Yaftian Ali,
Taylor Grantley,
Monzur Hasan Mostafa
Publication year - 2019
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12277
Subject(s) - financial distress , proxy (statistics) , corporate social responsibility , distress , sample (material) , business , life cycle hypothesis , association (psychology) , accounting , economics , financial system , psychology , public relations , clinical psychology , political science , chemistry , chromatography , machine learning , computer science , psychotherapist , macroeconomics
This study examines the association between corporate social responsibility ( CSR ) performance and financial distress and additionally the moderating impact of firm life cycle stages on that association. Based on a sample of 651 publicly listed Australian firm‐years’ data covering the 2007–2013 period, our regression results show that positive CSR activity significantly reduces financial distress of the firm. In addition, the negative association between positive CSR performance and financial distress is more pronounced for firms in mature life cycle stages. Our results are robust to alternative proxy measures of financial distress, CSR performance and life cycle stages.