||Linkage between Corporate Social Responsibilities and Financial Performance in Shipping Industry
||Linkage between Corporate Social Responsibilities and Financial Performance in Shipping Industry
||Institute of International Management
Corporate social responsibilities
Firms’ financial performance
Bulk and Tanker market
Panel data regression
Maritime services model
Maritime regional model
Findings in the various levels of linkage between corporate social responsibilities and firms' financial performance in different major kinds of shipping market can be helpful in improving effective decision-making of both capital investment and corporate finance. This research shows two main models for panel data regression analysis, namely, Maritime Service Model, and Maritime Regional Model. These models can distinguish the relationship between corporate social responsibilities and firms' financial performance in specific models of shipping industry. Results show that a company's involvement in CSR activities affects financial performance as current state (ROA, ROE) rather than financial performance as expected state (Tobin Q). In Maritime Service Model, container firms are considered to have strong positive significant impacts on firms’ financial performance. Similarly, in Maritime Regional Model, shipping companies in East Asia Pacific wherein most firms include container service have firmly positive significant relationship between CSR performing indicator and firm's financial performance. The research's distribution will give great benefits towards stock investor and manager between shipping industries since the results demonstrate the different levels of how shipping firms worldwide react to the increment of CSR activities with various approaches.
TABLE OF CONTENTS IV
LIST OF TABLES VII
LIST OF FIGURES IX
CHAPTER ONE INTRODUCTION 1
1.1 Research Background. 1
1.2 Research Motivation. 2
1.3 Research Objective. 4
1.4 Research Gap. 5
CHAPTER TWO LITERATURE REVIEW 7
2.1 Shipping Industry and Development. 7
2.1.1 Shipping Industry and Economy. 7
2.1.2 Three Major Markets in Shipping Industry. 8
2.1.3 Shipping Industry Development. 9
2.2 Corporate Social Responsibility (CSR) and Firms’ Financial Performance. 12
2.2.1 Corporate Social Responsibility (CSR) Background. 12
2.2.2 CSR and Firm Performance in Shipping Industry. 13
2.3 CSR Contingency Theory on Firms’ Financial Performance. 15
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 17
3.1 Variables Selection. 17
3.1.1 Dependent Variables. 18
3.1.2 Independent Variables. 19
3.1.3 Control Variables. 20
3.2 Research Methodology and Regression Model. 21
3.2.1 Research Methodology. 21
3.2.2 Regression Models. 22
3.3 Data and Sample Sources. 25
CHAPTER FOUR RESEARCH RESULTS 29
4.1 Descriptive Statistics. 29
4.2 Correlation Analysis. 32
4.3 Multicolinearity Test. 43
4.4 Panel Data Regression Analysis. 44
4.4.1 Panel Data Regression Results for Firm’s ROA Financial Performance on the overall CSR performing Indicator (Based on Analyses of Both Maritime Service Model and Maritime Regional Model). 45
4.4.2 Panel Data Regression Results for Firm’s ROE Financial Performance on the Overall CSR Performing Indicator (Based on Analyses of Both Maritime Service Model and Maritime Regional Model). 48
4.4.3 Panel Data Regression Results for Firm’s Tobin Q Financial Performance on the overall CSR performing Indicator (Based on Analyses of Both Maritime Service Model and Maritime Regional Model). 51
4.4.4 Panel Data Regression Results for Firm’s ROA Financial Performance on the different measurements of CSR performing Indicator (Based on Analyses of Both Maritime Service Model and Maritime Regional Model). 54
4.4.5 Panel Data Regression Results for Firm’s ROE Financial Performance on the different measurements of CSR performing Indicator (Based on Analyses of Both Maritime Service Model and Maritime Regional Model). 58
4.4.6 Panel Data Regression Results for Firm’s Tobin Q Financial Performance on the different measurements of CSR performing Indicator (Based on Analyses of Both Maritime Service Model and Maritime Regional Model). 62
CHAPTER FIVE CONCLUSION AND SUGGESTIONS 66
5.1 Research Conclusion. 66
5.2 Research Contribution. 70
5.3 Research Limitation and Suggestion. 71
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