FIRM INTERNATIONALIZATION, CORPORATE SOCIAL PERFORMANCE AND FINANCIAL PERFORMANCE

Abstract

THE MANAGEMENT LITERATURE CHARACTERIZES CORPORATE SOCIAL PERFORMANCE (CSP) AS THE OBSERVABLE AND MEASURABLE OUTCOME THAT RESULTS FROM A BUSINESS ORGANIZATION?S IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY (CSR) PRINCIPLES, POLICIES, PROGRAMS AND SOCIETAL RELATIONSHIPS. THE PRINCIPAL OBJECTIVE OF THIS DISSERTATION IS TO FURTHER OUR UNDERSTANDING REGARDING 1) THE INFLUENCE OF INTERNATIONALIZATION ON THE CORPORATE SOCIAL PERFORMANCE AND 2) THE MODERATING ROLE OF CORPORATE SOCIAL PERFORMANCE ON THE RELATIONSHIP BETWEEN INTERNATIONALIZATION AND FINANCIAL PERFORMANCE. BASED ON A SAMPLE OF 2,138 U. S. PUBLIC FIRMS, THE FIRST ESSAY FINDS THAT AS FIRMS INTERNATIONALIZE, INSTITUTIONS THAT RELATE TO THE SOCIAL DIMENSION OF CSP DIVERSIFY ACROSS NATION. WHILE IN ITS REGULATORY DIMENSION, INSTITUTIONS TEND TO CONVERGE WITH INTERNATIONALIZATION. VALUE OF INTANGIBLE FIRM-SPECIFIC ASSETS INCREASES AS A FIRM BECOMES MORE MULTINATIONAL. THE SECOND ESSAY SHOWS THAT BUILDING AND MAINTAINING GOOD RELAT