Open AccessAnalysis of Corporate Social Responsibility of the African ‘Internationalisers’ versus Non-African founded MNCs
Author(s) -
Chengete Chakamera
Publication year - 2020
Publication title -
international review of philanthropy and social investment
Language(s) - English
Resource type - Journals
eISSN - 2708-3322
pISSN - 2708-3314
DOI - 10.47019/irpsi.2020/v1n1a5
Subject(s) - corporate social responsibility , profitability index , multinational corporation , equity (law) , business , stock (firearms) , financial economics , demographic economics , economics , accounting , monetary economics , political science , finance , mechanical engineering , public relations , law , engineering
This study analysed the corporate social responsibility (CSR) performances of non-African founded multinational corporations(NAFMNCs) and African founded corporations with transnational footprints (African internationalisers) and the effects of firmfeatures using fixed and random effects estimators. A positive effect of firm age on CSR was found, which was relatively high forAfrican internationalisers (AIs). Being an AI or NAFMNC is a valid factor that separates the CSR performances of the firms.There was no evidence that firm size and profitability determined CSR in both groups of companies, although the full sample resultsshowed some evidence of size effect. CSR showed a positive impact on equity market performance, largely for the NAFMNCs.Firm size had a positive impact on stock price while ageing suggested a negative effect. The effect of profitability on stock pricewas insignificant. Performances of AIs and NAFMNCs differ across various CSR dimensions and the paper provides implications.