Relationship between technological innovation, corporate social performance, and corporate financial performance

Megumi Suto, Hitoshi Takehara

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This chapter investigates the relationship between technological innovation, corporate social performance (CSP), and corporate financial performance (CFP) of Japanese manufacturing firms. Firms that aggressively focus on research and development have to build investors’ trust and manage firm risk, including financial and social risks, since most such firms need to raise capital steadily. To achieve this risk reduction, managers of firms with technological competitiveness use activities related to their CSR as one of the instruments to manage firm risk. Empirical evidence presented in this chapter shows that both firm-level innovation and CSP are negatively associated with firm risk, which is evaluated in the stock market. Furthermore, results from the mediation analysis suggest that corporate social responsibility works as a mediator to explain the negative association between firm-level innovation and firm risk. This finding implies that mangers of firms with aggressive corporate innovative activities should be more conscious of corporate social activities in the long run to maintain the trust of participants in the capital market.

Original languageEnglish
Title of host publicationAdvances in Japanese Business and Economics
PublisherSpringer
Pages201-215
Number of pages15
DOIs
Publication statusPublished - 2018

Publication series

NameAdvances in Japanese Business and Economics
Volume17
ISSN (Print)2197-8859
ISSN (Electronic)2197-8867

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Economics and Econometrics
  • Finance

Fingerprint Dive into the research topics of 'Relationship between technological innovation, corporate social performance, and corporate financial performance'. Together they form a unique fingerprint.

  • Cite this

    Suto, M., & Takehara, H. (2018). Relationship between technological innovation, corporate social performance, and corporate financial performance. In Advances in Japanese Business and Economics (pp. 201-215). (Advances in Japanese Business and Economics; Vol. 17). Springer. https://doi.org/10.1007/978-981-10-8986-2_9