Analyzing the Relationship Between CSR and Financial Performance

This research project investigates the correlation between Corporate Social Responsibility (CSR) and financial performance using data from 15 selected companies in the New Zealand industry. The study employs correlation and regression methods to analyze the relationship between the CSR disclosure index rating (independent variable) and average stock price (dependent variable), alongside control variables like total assets. Key findings reveal varying degrees of correlation across the companies, with some exhibiting a positive relationship between CSR disclosures and stock performance and total assets, while others show negative or insignificant correlations. The analysis indicates that industry-specific factors, such as risk and stakeholder engagement, may moderate the relationship. The research concludes that the impact of CSR on financial performance is not universally significant, suggesting that other factors beyond CSR disclosures play a crucial role. The report also provides recommendations for future research, including incorporating additional variables like industry size and risk and further exploration of factors influencing the relationship between CSR and financial performance.

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Research Project
Student Name
University Name

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Table of Contents
Introduction and Research Methods................................................................................................2
Key Findings....................................................................................................................................2
Analysis.........................................................................................................................................26
Conclusions and Recommendations..............................................................................................28
Bibliography..................................................................................................................................29

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Introduction and Research Methods
The given research report will highlight data analysis on the variables CSR and financial
performance of 15 selected industry companies. The analysis have been done based on 15
companies. Independent and dependent variables are taken as CSR disclosure index rating and
Average Stock Price. The lower the rank, the better is the company. The analysis will be done
with the help of Correlation and regression methods using excel. The total Assets figure is
displayed in millions. The details of stock prices have been taken from New Zealand stock
exchange and Bloomberg.
Key Findings
The selected 15 companies are as follows:-
Air Zealand
Fisher & Paykel Healthcare Corporation
Fonterra Co-operative Group
The Warehouse Group
Spark New Zealand
Fletcher Building
Kiwibank
Ryman Healthcare Limited
New Zealand Post
New World Development Company
Goodman Property
The A2 Milk Company Limited

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Z Energy Limited
Genesis Energy Limited
Mercury Energy
The key findings from 15 companies regarding their average stock price and CSR disclosure can
be further evaluated with the following tables:-
Air New Zealand
Average Stock Price CSR disclosure
(CSR index)
Total Assets
(Millions)
2013 1.35 5 5612
2014 1.65 3 5850
2015 2.55 3 6775
2016 3.08 1 7251
2017 2.11 1 7171
Correlation -0.730
Correlation between control variables and
independent variables
-0.899

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SUMMARY OUTPUT
Regression Statistics
Multiple R 0.820122
R Square 0.672599
Adjusted R Square 0.563466
Standard Error 0.457332
Observations 5
ANOVA
df SS MS F Significance F
Regression 1 1.289023 1.289023 6.163086 0.089068
Residual 3 0.627457 0.209152
Total 4 1.91648
CoefficientsStandard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%Upper 95.0%
Intercept 0.953077 0.522979 1.822401 0.165923 -0.71127 2.617429 -0.71127 2.617429
X Variable 1 0.248942 0.100277 2.482556 0.089068 -0.07018 0.568067 -0.07018 0.568067
Analysis of Other companies
Z Energy Limited
Average Stock Price CSR
Disclosure
CSR
Index
Rankin
g
Total
Assets
2013 3.77 3 8 1540
2014 3.7 3 5 1373
2015 4.63 4 4 1394
2016 6.35 4 4 2473
2017 7.6 5 3 2805

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Correlation of
Dependent and
Independent
Variables
0.93
Correlation of
Independent and
Control Variables
0.80
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.932902
R Square 0.870306
Adjusted R Square0.827074
Standard Error0.711256
Observations 5
ANOVA
df SS MS F Significance F
Regression 1 10.18414 10.18414 20.13131 0.020653
Residual 3 1.517657 0.505886
Total 4 11.7018
CoefficientsStandard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%Upper 95.0%
Intercept -2.03714 1.646239 -1.23745 0.303945 -7.27621 3.201924 -7.27621 3.201924
X Variable 11.907143 0.425057 4.486793 0.020653 0.554422 3.259864 0.554422 3.259864

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Warehouse Group
Average Stock Price CSR Disclosure CSR Index Ranking Total
Assets
2013 4.14 2 15 996
2014 3.66 3 11 1132
2015 2.75 3 10 1199
2016 2.6 4 8 1243
2017 2.85 4 8 1114
Correlation of
Dependant and
Independent
Variables
-0.85
Correlation of
Independent and
Control Variables
0.71

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SUMMARY OUTPUT
Regression Statistics
Multiple R 0.846542
R Square 0.716633
Adjusted R Square0.622177
Standard Error0.410061
Observations 5
ANOVA
df SS MS F Significance F
Regression 1 1.27575 1.27575 7.586976 0.070479
Residual 3 0.50445 0.16815
Total 4 1.7802
CoefficientsStandard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%Upper 95.0%
Intercept 5.36 0.805344 6.655543 0.006914 2.797037 7.922963 2.797037 7.922963
X Variable 1 -0.675 0.245058 -2.75445 0.070479 -1.45488 0.104885 -1.45488 0.104885
Sparks New
Zealand
Average Stock
Price
CSR Disclosures CSR Index Ranking Total Assets
2013 2.82 0 65 3667
2014 3.29 0 55 3493
2015 3.1 1 45 3243
2016 3.29 1 38 3206
2017 3.63 2 26 3237
Correlation of
Dependant and
0.75

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Independent
Variables
Correlation of
Independent and
Control Variables
-0.82
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.751302
R Square 0.564454
Adjusted R Square 0.419273
Standard Error 0.2261
Observations 5
ANOVA
df SS MS F Significance F
Regression 1 0.198756 0.198756 3.887914 0.143198
Residual 3 0.153364 0.051121
Total 4 0.35212
CoefficientsStandard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%Upper 95.0%
Intercept 3.012857 0.148018 20.35473 0.000259 2.541799 3.483915 2.541799 3.483915
X Variable 1 0.266429 0.135121 1.971779 0.143198 -0.16359 0.696444 -0.16359 0.696444
Mercury Energy
Average Stock Price Count of CSR
Dislosures
CSR Index Total
Assets
2013 2.43 1 32 374
2014 2.05 1 30 374

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2015 2.97 1 28 390
2016 2.76 3 14 736
2017 2.96 3 15 816
Correlation of
Dependant and
Independent
Variables
0.52
Correlation of
Independent and
Control Variables
0.99
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.524991
R Square 0.275616
Adjusted R Square0.034154
Standard Error0.386207
Observations 5
ANOVA
df SS MS F Significance F
Regression 1 0.170253 0.170253 1.141448 0.36368
Residual 3 0.447467 0.149156
Total 4 0.61772
CoefficientsStandard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%Upper 95.0%
Intercept 2.295 0.361263 6.352709 0.007891 1.145299 3.444701 1.145299 3.444701
X Variable 10.188333 0.176278 1.068386 0.36368 -0.37266 0.74933 -0.37266 0.74933
Fisher and Paykel

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Average Stock Price Total CSR
Dislcosures
CSR Index Total Assets (In
millions)
2013 3.41 2 11 496
2014 3.89 3 9 591
2015 6.22 3 8 657
2016 8.47 4 7 691
2017 8.7 4 6 802
Correlation of
Dependant and
Independent
Variables
0.92
Correlation of
Independent and
Control Variables
0.92

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SUMMARY OUTPUT
Regression Statistics
Multiple R 0.920172
R Square 0.846716
Adjusted R Square0.795622
Standard Error1.118944
Observations 5
ANOVA
df SS MS F Significance F
Regression 1 20.74817 20.74817 16.57155 0.026748
Residual 3 3.756107 1.252036
Total 4 24.50428
CoefficientsStandard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%Upper 95.0%
Intercept -2.57286 2.197562 -1.17078 0.326225 -9.56648 4.420767 -9.56648 4.420767
X Variable 12.722143 0.668697 4.070817 0.026748 0.594051 4.850235 0.594051 4.850235
Fonterra Group
Average Stock Price Total CSR
Disclosure
s
CSR Index Total
Assets
2013 5.69 1 18 14373
2014 6.05 1 22 15529
2015 5.93 2 40 18315
2016 6 2 24 17118
2017 6.06 2 25 17842