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The interplay of CSR, stakeholder interest management, capital budgeting, and firm performance

Authors :
Hunjra, Ahmed Imran
Arunachalam, Murugesh
Verhoeven, Peter
Colombage, Sisira
Bouri, Elie
Source :
Journal of Behavioral and Experimental Finance; September 2024, Vol. 43 Issue: 1
Publication Year :
2024

Abstract

This study examines the perspectives of corporate managers regarding corporate social responsibility (CSR), stakeholder interest management, firm performance, and their preferences in capital budgeting. It uses structural equation modelling (SEM) to test hypotheses. The analysis shows that capital budgeting serves as a mediator, diminishing the direct relationship between CSR and firm performance, and between the management of stakeholder interests and firm performance. The findings indicate that instrumental motives guide corporate managers in their capital budgeting decisions. The paper challenges perspectives that disproportionately emphasize the benevolent and moral dimensions of CSR, highlighting the significance of stakeholder interest management as a credible and essential business practice.

Details

Language :
English
ISSN :
22146350
Volume :
43
Issue :
1
Database :
Supplemental Index
Journal :
Journal of Behavioral and Experimental Finance
Publication Type :
Periodical
Accession number :
ejs67065874
Full Text :
https://doi.org/10.1016/j.jbef.2024.100967