The impact of CSR on the financial performance in manufacturing and service listed firms in Malaysia.

Abstract

Social responsibility has gained an increasing attention over the past decades and has started to be a main topic in this new era, which means that it is significant for businesses to increase their focus on responsible socially. The demand for corporate social responsibilities has been raising in the society by the public around the world. However, the percentage of companies that are initiating corporate social responsibilities in Malaysia is significantly low. The aim of this paper is to study the impacts of corporate social responsibility on public listed companies from the service and manufacturing industries in Malaysia. In this research, a quantitative method is adopted to analyze the secondary data collected through SPSS statistical software. This research obtained the data over the period of 2016 to 2020 of 31 service companies and 31 public manufacturing companies that are listed in Bursa Malaysia. The results of this research show that there is an impact of corporate social responsibility towards return-on-equity (ROE) and earnings per share (EPS). This means that ROE and EPS have a relationship with CSR significantly. On the other hand, the results show that there is no impact of corporate social responsibility towards return-on-asset (ROA) and net profit margin (NPM). The findings indicates that ROA and NPM have no significant relationship with CSR.