Corporate Governance and Performance in Socially Responsible Corporations: New Empirical Insights from a Neo‐Institutional Framework

Abstract Manuscript Type Empirical Research Question/Issue This paper investigates the relationship between corporate governance ( CG ) and corporate social responsibility ( CSR ) and, consequently, examines whether CG can positively moderate the association between corporate financial performance ( CFP ) and CSR . Research Findings/Insights Using a sample of large listed corporations from 2002 to 2009, we find that, on average, better‐governed corporations tend to pursue a more socially responsible agenda through increased CSR practices. We also find that a combination of CSR and CG practices has a stronger positive effect on CFP than CSR alone, implying that CG positively influences the CFP‐CSR relationship.…