Do corporate social responsibility activities enhance firm value? An empirical evidence from Taiwan

Figures & data

Table 1. The definition of variables.

Variables	Definition
Tobins Q	Sum of the market value of equity and liabilities divided by the total assets
ROA	Net income divided by total assets
ROE	Net income divided by total equity
CSR	CSR score is evaluated by CommonWealth Magazine
LnSize	The natural logarithm of total assets
LnAge	The natural logarithm of the firm’s age
Sales growth	The growth rate of sales
Lev	The ratio of the total liabilities scaled by total assets
CASH/total assets	The ratio of cash flow to total assets

Table 2. Descriptive statistics of the variables.

Variable	Mean	Std. Dev	Median	Min	Max	Skewness	Kurtosis	Obs
Tobins Q	1.29	0.84	1.01	0.07	5.39	1.55	2.91	594
ROA	7.05	6.22	6.07	−25.41	30.88	0.05	2.46	594
ROE	12.17	11.41	11.74	−79.14	69.68	−1.74	13.84	594
CSR	7.96	0.75	8.03	5.48	9.51	−0.75	0.70	594
Size (million)	182,373	376,545	58,189	970	3,674,276	5.61	39.47	594
Age	31.95	14.60	28.94	2.33	71.72	0.63	−0.24	594
Sales_Growth (%)	4.49	21.21	2.70	−88.71	268.70	4.54	48.05	594
Lev (%)	46.05	18.44	45.99	6.43	95.1	0.06	−0.73	594
CASH/total assets (%)	5.22	8.03	4.41	−33.21	48.54	0.67	4.38	594

Table 3. The correlation matrix of the variables.

Variables	Tobins Q	ROA	ROE	CSR	LnSize	LnAge	Sales Growth	Lev	CASH/Total Assets
Tobins Q	1.0000
ROA	0.7011	1.0000
ROE	0.5387	0.8726	1.0000
CSR	0.2008	0.1901	0.2076	1.0000
LnSize	−0.1246	−0.1979	−0.0945	0.2857	1.0000
LnAget	−0.2226	−0.2381	−0.1782	0.0398	0.2199	1.0000
Sales growth	0.0998	0.1406	0.1615	−0.0536	−0.0210	−0.0121	1.0000
Levt-1	−0.3771	−0.3789	−0.0520	0.0060	0.3499	0.1806	0.0755	1.0000
CASH/total assets	0.3745	0.3680	0.2642	0.0886	−0.0601	−0.1516	−0.0811	−0.3490	1.0000

Table 4. The regression of CSR on corporate performance.

	Tobins Q	ROA	ROE
Intercept	0.7404 (1.54)	9.0898*** (2.58)	5.4727 (0.78)
CSR	0.2915*** (5.07)	2.4754*** (5.90)	4.5786*** (5.47)
LnSize	−0.0282 (−1.41)	−0.5791*** (−3.97)	−1.1305*** (−3.89)
LnAge	−0.2585*** (−4.10)	−1.6840*** (−3.66)	−3.0950*** (−3.38)
Sales growth	0.6672*** (5.03)	5.7921*** (5.98)	10.7342*** (5.56)
Lev	−0.0115*** (−5.96)	−0.0754*** (−5.38)	0.0720** (2.57)
CASH/total assets	2.6613*** (7.07)	19.3854*** (7.06)	37.3707*** (6.83)
Year dummy	Yes	Yes	Yes
Industry dummy	Yes	Yes	Yes
Adj R-square	0.2968	0.3221	0.2000
OBS	594	594	594

*, **, and *** denote significance at the 10%, 5%, and 1% levels, respectively.

Table 5. The 2SLS regression of CSR on corporate performance: addressing endogeneity.

	First stage		Second stage
	CSR (1)		Tobins Q (2)	ROA (3)	ROE (4)
Intercept	−1.6030*** (−3.70)	Intercept	0.8869 (1.52)	8.7486** (2.05)	1.7919 (0.21)
CSR_IND	0.8509*** (14.61)	CSR	0.2470** (2.20)	2.5791*** (3.14)	5.6975*** (3.50)
LnSize	0.1096*** (9.52)	LnSize	−0.0215 (−0.86)	−0.5949*** (−3.25)	−1.3006*** (−3.58)
LnAge	−0.00313 (−0.08)	LnAge	−0.2603*** (−4.05)	−1.6798*** (−3.57)	−3.0495*** (−3.27)
Sales growth	0.0315 (0.38)	Sales growth	0.6671*** (4.94)	5.7924*** (5.85)	10.7371*** (5.48)
Lev	−0.0032*** (−2.74)	Lev	−0.0116*** (−5.84)	−0.0751*** (−5.15)	0.0762*** (2.64)
CASH/total assets	0.3509 (1.51)	CASH/total assets	2.6867*** (6.94)	19.3263*** (6.82)	36.7330*** (6.54)
Year dummy	Yes	Year dummy	Yes	Yes	Yes
Industry dummy	Yes	Industry dummy	Yes	Yes	Yes
Adj R-square	0.6603	Adj R-square	0.2714	0.2930	0.1758
OBS	594	OBS	594	594	594

*, **, and *** denote significance at the 10%, 5%, and 1% levels, respectively.

Table 6. The quantile regression of CSR on corporate performance.

	0.01	0.05	0.10	0.25	0.5	0.75	0.9	0.95	0.99
	Coefficient	Coefficient	Coefficient	Coefficient	Coefficient	Coefficient	Coefficient	Coefficient	Coefficient
Intercept	0.6023 (0.14)	0.7367* (2.08)	0.8599*** (2.73)	0.4796 (1.14)	1.4915*** (3.33)	1.4341** (2.53)	0.1189 (0.11)	−1.5930 (−0.78)	−1.4530 (−0.05)
CSR	0.0553 (0.51)	0.0663 (1.44)	0.1100** (2.28)	0.2249*** (4.71)	0.2642*** (5.04)	0.2686*** (4.56)	0.2690** (2.10)	0.5809** (2.26)	1.0060 (1.34)
LnSize	−0.0206 (−0.59)	−0.0208 (−1.29)	−0.0306** (−2.05)	−0.0278* (−1.86)	−0.0436*** (−2.84)	−0.0312 (−1.29)	0.0564 (0.95)	0.0324 (0.30)	−0.0727 (−0.29)
LnAge	−0.0738 (−0.63)	−0.0995* (−1.68)	−0.0994* (−1.94)	−0.1832*** (−4.35)	−0.2783*** (−6.29)	−0.2846*** (−3.65)	−0.4921*** (−2.98)	−0.1604 (−0.73)	0.0995 (0.19)
Sales growth	0.1236 (0.73)	0.1006* (1.84)	0.1952*** (3.33)	0.3517** (2.22)	0.5963** (2.23)	1.2568*** (3.03)	1.3120*** (3.34)	1.3597*** (3.08)	1.5907 (1.29)
Lev	0.0003 (0.12)	0.0003 (0.27)	−0.0026*** (−2.63)	−0.0079*** (−6.33)	−0.0125*** (−8.13)	−0.0146*** (−5.28)	−0.0111** (−2.45)	−0.0190*** (−2.64)	−0.0286* (−1.66)
CASH/total assets	0.2055 (0.25)	0.7334* (1.85)	0.7160** (2.19)	1.4724*** (3.65)	2.1499*** (5.45)	2.9443*** (5.49)	3.2582*** (4.43)	2.5566*** (3.12)	2.6353 (0.74)
Industry dummy	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year dummy	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes

*, **, and *** denote significance at the 10%, 5%, and 1% levels, respectively.