Agric. Econ. - Czech, 2019, 65(8):366-374 | DOI: 10.17221/339/2018-AGRICECON

Firm growth, business risk, and corporate social responsibility in Taiwan's food industryOriginal Paper

Shiu-Wan Hung1, Chiao-Ming Li1, Joe-Ming Lee*,2
1 Department of Business Administration, National Central University, Jung-li City, Taoyuan, Taiwan
2 Department of Applied Economics, Fo Guang University, Jiaosi Shiang, Taiwan

This study applies the multiple-regime panel smooth transition regression (MR-PSTR) estimation to investigate the non-linear dynamic relationship between a firm's corporate social responsibility (CSR) and firm growth in the food industry under the size threshold, using a panel of 30 Taiwanese food firms during 2007-2017. Our empirical results reveal that firm growth and firm size present a non-linear relationship, and that firm growth is different under the size threshold value and the control variables of firm age, CSR, R&D innovation, and finance policy. Corporate social responsibility helps reduce business risk. Regardless of the type and size, for many food industries, CSR is no longer an arbitrary choice, but an essential requirement.

Keywords: finance policy; firm size; non-linear dynamic relationship; R&D innovation

Published: August 31, 2019  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Hung S, Li C, Lee J. Firm growth, business risk, and corporate social responsibility in Taiwan's food industry. Agric. Econ. - Czech. 2019;65(8):366-374. doi: 10.17221/339/2018-AGRICECON.
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Assiouras I., Ozgen O., Skourtis G. (2013): The impact of corporate social responsibility in food industry in productharm crises. British Food Journal, 115: 108-123. Go to original source...
    2. Audretsch D.B., Mahmood T. (1995): New firm survival: New results using a hazard function. Review of Economics and Statistics, 77: 97-103. Go to original source...
    3. Barrage L., Chyn E., Hastings J. (2014): Advertising as Insurance or Commitment? Evidence from the BP Oil Spill (No. w19838). National Bureau of Economic Research. Go to original source...
    4. Beck T., Levine R. (2002): Industry growth and capital allocation: does having a market-or bank-based system matter?. Journal of Financial Economics, 64: 147-180. Go to original source...
    5. Bettis R.A., Mahajan V. (1985): Risk return performance of diversified firms. Management Science, 31: 785-799. Go to original source...
    6. CSR Corporate Citizen Awards of Common Wealth Magazine (2018): CSR Corporate Citizen Awards. Available at https://www.gvm.com.tw/CSR/
    7. Dellios R., Yang X.H., Yilmaz N.K. (2009): Food safety and the role of the government implications for CSR policies in China. I-Business, 1: 75-84. Go to original source...
    8. Evans D.S. (1987a): The relationship between firm growth, size and age: Estimates for 100 manufacturing industries. Journal of Industrial Economics, 35: 567-581. Go to original source...
    9. Evans D.S. (1987b): Tests of alternative theories of firm growth. Journal of Political Economy, 95: 657-674. Go to original source...
    10. Emirmahmutoğlu F., Omay T. (2014): Reexamining the PPP hypothesis: A nonlinear assymetric heterogenous panel unit root test. Economic Modelling, 40: 184-190. Go to original source...
    11. Fama E.F., MacBeth J.D. (1973): Risk, return and equilibrium: empirical tests. Journal of Political Economy, 81: 607-636. Go to original source...
    12. Fama E., French K. (1995): Size and book-to-market factors in earnings and returns. Journal of Finance, 50: 131-55. Go to original source...
    13. Gibrat R. (1931): Les Inégalités Économiques. Paris: Librairie du Recueil Sirey.
    14. Hall G., Hutchinson P., Michaelas N. (2004): Determinants of the capital structures of European SMEs. Journal of Business Finance and Accounting, 31: 711-728. Go to original source...
    15. Huda M., Mulyadi D., Hananto A.L., Nor Muhamad N.H., Mat Teh K.S., Don A.G. (2018): Empowering corporate social responsibility (CSR): insights from service learning. Social Responsibility Journal, 14: 875-894. Go to original source...
    16. Im K.S., Pesaran M.H., Shin Y. (2003): Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115: 53-74. Go to original source...
    17. Jovanovic B. (1982): Selection and the evolution of industry. Econometrica, 50: 649-670. Go to original source...
    18. Knowles T., Moody R., McEachern M.G. (2007): European food scares and their impact on EU food policy. British Food Journal, 109: 43-67. Go to original source...
    19. Kong D. (2012): Does corporate social responsibility matter in the food industry? Evidence from a nature experiment in China. Food Policy, 37: 323-334. Go to original source...
    20. List J.A., Momeni F. (2017): When Corporate Social Responsibility Backfires: Theory and Evidence from a Natural Field Experiment (No. w24169). National Bureau of Economic Research. Go to original source...
    21. Manning L. (2018): Corporate Social Responsibility. Food Ethics Education. Springer, Cham: 121-146. Go to original source...
    22. Maloni M.J., Brown M.E. (2006): Corporate social responsibility in the supply chain: an application in the food industry. Journal of Business Ethics, 68: 35-52. Go to original source...
    23. Omay T., Kan E.Ö. (2010): Re-examining the threshold effects in the inflation - growth nexus with cross-sectionally dependent non-linear panel: Evidence from six industrialized economies. Economic Modelling, 27: 996-1005. Go to original source...
    24. Pesaran M.H., Schuermann T., Weiner S.M. (2004): Modeling regional interdependencies using a global error-correcting macroeconometric model. Journal of Business & Economic Statistics, 22: 129-162. Go to original source...
    25. Smith A.C., Westerbeek H.M. (2007): Sport as a vehicle for deploying corporate social responsibility. Journal of Corporate Citizenship, 25: 43-54. Go to original source...
    26. Smith N.C., Read D., Lopez S. (2018): CSR halo: The gift that keeps on giving? INSEAD Working Paper No. 2018/07/ ATL. Social Innovation Centre. Go to original source...
    27. Ucar N., Omay T. (2009): Testing for unit root in nonlinear heterogeneous panels. Economics Letters, 104: 5-8. Go to original source...
    28. Taiwan Economic Journal (TEJ) (2018): Taiwan Economic Journal database. Taiwan Economic Journal Co. Ltd. Available at http://www.finasia.biz/ensite/Database/tabid/92/language/en-US/Default.aspx

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content