University of Aveiro Researchers Advance Knowledge in Risk Management (The Impact of Corporate Social Responsibility and Innovative Strategies on Financial Performance): Insurance – Risk Management

2022 JUN 14 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Researchers detail new data in risk management. According to news reporting out of Aveiro, Portugal, by NewsRx editors, research stated, “The article aims to appraise the role of Corporate Social Responsibility (CSR) and innovation strategies as leverages of a company’s financial performance. The theoretical and empirical statement of this link aims to reinforce the importance of these strategical options in both the managerial and the public policy domain.”

Our news correspondents obtained a quote from the research from University of Aveiro: “Shedding light on the economic return of these practices will help managers make better strategic decisions. Policy makers will also grasp the required evidence to encompass CSR in policy packages. To address the research question, data were collected from the Thomson Reuters Eikon Datastream covering the 1000 largest companies listed on the stock exchange worldwide. Thereafter, hierarchical linear regressions were performed to produce the econometric results. Two time frames (2015-2019) were compared to address time-space trends. Enrolling in CSR activities entails additional costs which can undermine the company’s financial performance if not properly supported by public policies. Combining CSR and innovation appears to be the best strategy for companies seeking improvements in their financial performance while being socially responsible.”

According to the news reporters, the research concluded: “The contribution of this study is threefold: first, the analysis covers the largest thousand firms in operation worldwide; secondly, the econometric results demonstrate that combining CSR with innovation positively impacts financial performance; and lastly, the time comparison evidences a positive but slow evolution in CSR adoption. The article provides an applied perspective, of use both for managers and policy makers, as to how they should approach and disseminate involvement in these types of activities.”

For more information on this research see: The Impact of Corporate Social Responsibility and Innovative Strategies on Financial Performance. Risks, 2022,10(103):103. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks10050103.

Our news editors report that more information may be obtained by contacting Joana Costa, DEGEIT-Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, Campus Universitario de Santiago, 3810-193 Aveiro, Portugal. Additional authors for this research include Jose Pedro Fonseca.

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