Corporate Social Performance Influence on Corporate Financial Performance: A Case from Malaysia

Abstract

This research study investigates whether corporate social performance influences the financial performance of Malaysian firms. This research study focuses on the shortcomings of current literature review by focusing the influence of corporate social performance on financial performance of Malaysian firms for the period of 2013-2022. The data is collected from Thomson Reuter DataStream. In general, corporate social performance and financial performance holds a optimistic relationship. The empirical result shows that the outcome of corporate social performance on corporate financial performance is positive. Institutional and legitimacy criteria serve as an effective foundation for establishing social sustainability.  Policymakers and investors must consider these results when formulating economic policies and investment strategies, while enterprises in emerging nations such as Malaysia should recognize the potential implications of these elements and seek appropriate management strategies.