Journal of Business & Economic Policy

Corporate Governance Drivers and Corporate Social Responsibility Financial Performance Outcomes: Evidence from Saudi Arabia
Dr. Sattam S. Alrowais

Abstract
Mixed findings for corporate social responsibility and financial performance has illustrated in the prior studies. In order to clarify the past mixed findings, a call for inquiries has made for mediators and moderators. This study responds to the calls by analyzing the mediation effects of CSRDS on corporate governance and financial performance. We find that CSRD mediates the relationships between corporate governance and financial performance by using a study of 36 firm-year observations from the KSA petrochemical companies in the years 2012 through 2017. The findings show that it plays an important role to affect the financial performance of companies if they implement corporate governance efficiently to produce good CSR results. The findings of our research add to the CSR literature by describing the meditation effects of CSRDS on the previous heterogeneous conclusions on the relationship between CSR and the financial returns

Full Text: PDF