The Effect of Corporate Citizenship Activities (CCAS) on Financial Performance and Market Performance: The Omani Experience

Shaker Al Ani, Mawih K.; Jamil, Syed Ahsan

doi:10.1515/jeb-2015-0005

Abstract

The main objective of this study is to investigate and analyze the effects of corporate citizenship activities on the financial performance and market performance of Omani manufacturing companies in the Sultanate of Oman for the period 2009-2013. The Financial performance of companies is measured by two independent variables: return on assets (ROA) and return on equity (ROE). Market performance is measured by the fair market value of shares (FMV). CCAs are determined by the voluntary disclosures of corporate citizenship activities by the companies. The study concludes that there is a positive impact by CCAs on the financial and market performance of the Omani companies that leads to profit maximization.

References

Babalola, Y. A. 2012. The Impact of corporate social responsibility on firms’ profitability in Nigeria, European Journal of Economics, Finance and Administrative Sciences, 45. Retrieved from: http://www.eurojournals.com/EJEFAS.htm (accessed February 2013).
Search in Google Scholar
Background Paper. 2007. Corporate Social Responsibility and Corporate Citizenship in the Arab World. Paper presentedin the CSR Conference in Cairo, Egypt, on November 21-22
Search in Google Scholar
Baker, K. H., and Powell, G. E. 2005. Understanding Financial Management a Practical Guide. United Kingdom, CA: Black well Publishing.
Search in Google Scholar
Birch, D. 2001. Corporate citizenship: Rethinking business beyond corporate social responsibility. In Perspectives on Corporate Citizenship, edited by J. Andriof and M. McIntosh, 53-65. Greenleaf, Sheffield.10.9774/GLEAF.978-1-909493-19-3_5
Search in Google Scholar
Blazovich, J. L. and Smith, L. M. 2009. Ethical corporate citizenship: Does it pay? Paper presented at the symposium on ethics research in Accounting, American Accounting Association CA: USA. Retrieved from www.cebcglobal.org/uploaded_files/Ethical_Corporate_Citizenship.pdf (accessed October 2012).10.1108/S1574-0765(2011)0000015008
Search in Google Scholar
Cheng, B., Ioannis I.,and George S. 2014. Corporate social responsibility and access to finance, Strategic Management Journal, 35, 1-23.
Search in Google Scholar
Corporate citizenship. (n.d). Retrieved June 09, 2014, from Panasonic Company website, http://panasonic.net/citizenship.
Search in Google Scholar
El Ghoula, S., Guedhamib, O., Kwokb, C. C. Y., and Mishrac, D. R. 2011. Does corporate social responsibility affects the cost of capital? Journal of Banking and Finance, 35(9): 2388-2406.
Search in Google Scholar
Fiori, G., di Donato, F. and Izzo, M. F. 2007. Corporate Social responsibility and Firms Performance- An Analysis on Italian Companies. Retrieved from http://ssrn.com/abstract=1032851 (accessed December 2013).10.2139/ssrn.1032851
Search in Google Scholar
Gardberg, N. A., and Fombrun, C. J. 2006. Corporatecitizenship: Creating intangibleassets across institutional environments. Academy of Management Review 31(20): 329-346.10.5465/amr.2006.20208684
Search in Google Scholar
Gregory, A., Tharyan, R., and Whittaker, J. (2014). Corporate social responsibility and company value. Journal of Business Ethics 124 (4):633-657.
Search in Google Scholar
Hamid, K., Rana. S. I. A., Asghar, M.,and Ahmad, S. 2011. Corporate social performance, financial performance and market value behavior: An information asymmetry perspective. African Journal of Business Management 5(15): 6342-6349, 4 August.
Search in Google Scholar
Makni, R., Claude, F., and Francois, B. 2009. Causality between corporate social performance and financial performance: Evidence from Canadian firms. Journal of Business Ethics 89(3): 409-422.10.1007/s10551-008-0007-7
Search in Google Scholar
Matten, D. Crane, A. and Chapple, W. 2003. Behind the mask: Revealing the true face of corporate citizenship, Journal of Business Ethics 45(1):109-120.
Search in Google Scholar
Meijer, M. M., and Schuyt, T. 2005. Corporate social performance as a bottom line for consumer, Business and Society 44, 442-461.
Search in Google Scholar
Mulyadi, M. S.,and Anwar, Y. (2012). Impact of corporate social responsibility toward firm value and profitability. The Business Review 19 (2): 316-324.
Search in Google Scholar
Pang, K. C. 2010. Moral development of youth in Hong Kong: Towards a model of immersion through corporate citizenship - An Advanced Model of Corporate Social Responsibility.Journal of Youth Studies 13 (2) (Serial No. 26): 103-112.
Search in Google Scholar
Pauly, D. B., Wickert, C. Spence, L. and Scherer, A., G. 2013. Organizing corporate social responsibility in small and large firms: Size matters. Journal of Business Ethics 115(4): 693-705.10.1007/s10551-013-1827-7
Search in Google Scholar
Servaes, H., and Tamayo, A. 2013. The Impact of corporate social responsibility on firm value: The Role of customer awareness, Management Science 59 (5):1045-1061.10.1287/mnsc.1120.1630
Search in Google Scholar
Setiawan, E., andJanet, T. G. 2011. Corporate social responsibility, financial performance, and market performance: Evidence from Indonesian consumer goods industry. Paper presented at the 6th Asian Business Research Conference, 9-10 April, University of Surabaya, Indonesian. Retrieved from www.wbiconpro.com/107-Evelyn.pdf (accessed February 2013).
Search in Google Scholar
Suillvan, J. D., Shkolinkov, A., and Lichman, J. 2004. Corporate citizenship and its applications in business filed. Retrieved from Centre of International Private Enterprise.website: http://www.cipearabia.org/files/pdf/Corporate_Citizenship/Business_Case_for_Corporate_Citizenship.pdf (accessed October 2012).
Search in Google Scholar
Sustainable development. (n.d.). Retrieved September 22, 2014, from Raysutcement Company website, http:// www.raysutcement.com.om/susdevelopment.html.
Search in Google Scholar
Thomas D. and Preston L. E. 1995. The Stakeholder theory of the corporation: Concepts, evidence and implications. The Academy of Management Review 20(1): 65-91.10.2307/258887
Search in Google Scholar
Uadiale, O. M., and Fagbemi, T. O. 2012. Corporate social responsibility and financial performance in developing economies: The Nigerian experience. Journal of Economics and Sustainable Development 3(4): 44-54.
Search in Google Scholar
Valor, C. 2005. Corporate social responsibility and corporate citizenship: Towards corporate accountability. Business and Society Review 110(2): 191-212.10.1111/j.0045-3609.2005.00011.x
Search in Google Scholar
Waddock, S. A., and Graves, S. B. 1997. The Corporate social performance- financial performance link. Strategic Management Journal 18(4): 303-319.10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G
Search in Google Scholar
Wood, D. J. 1991. Corporate social performance revisited. Academy of Management Review 16: 691-718.10.5465/amr.1991.4279616
Search in Google Scholar
World Economic Forum. 2003. Global competitiveness reports (2003- 4). Retrieved from World Economic Forum website: http:// www.weforum.org/issues/global-competitivenes (accessed May 2014).
Search in Google Scholar
Yasser, R. Q. 2011. Corporate citizenship: A new peak. Retrieved from: http://ssrn.com/abstract=1828602 (accessed October 2012). 10.2139/ssrn.1828602
Search in Google Scholar

The Effect of Corporate Citizenship Activities (CCAS) on Financial Performance and Market Performance: The Omani Experience

Abstract

Paradigm

My account