Author(s): Inya Egbe*, Xinyi Mo, Imaobong Inam
Studies on the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) have existed for over forty years. Still, only a few studies have analysed moderators or mediators in this field. Therefore, this study investigates whether the macro-cultures among different markets moderate the CSR-CFP relationship dynamic. This study employs the system generalised method of moments (GMM) on a cross-section of companies. The result obtained indicates that companies with better CSR performance have significantly better financial performance. Besides, the large-power-distance culture negatively moderates this relationship, while high-individualism culture positively influences the linkage between CSR and CFP. However, this study found no evidence to determine the moderating effects of masculinity culture and uncertainty-avoidance culture.