Firm growth, business risk, and corporate social responsibility in Taiwan’s food industry S., Li C., Lee J. (2019): Firm growth, business risk, and corporate social responsibility in Taiwan’s food industry. Agric. Econ. – Czech, 65: 366-374.
download PDF

This study applies the multiple-regime panel smooth transition regression (MR-PSTR) estimation to investigate the non-linear dynamic relationship between a firm’s corporate social responsibility (CSR) and firm growth in the food industry under the size threshold, using a panel of 30 Taiwanese food firms during 2007–2017. Our empirical results reveal that firm growth and firm size present a non-linear relationship, and that firm growth is different under the size threshold value and the control variables of firm age, CSR, R&D innovation, and finance policy. Corporate social responsibility helps reduce business risk. Regardless of the type and size, for many food industries, CSR is no longer an arbitrary choice, but an essential requirement.

Hingley M., Assiouras I., Ozgen O., Skourtis G. (2013): The impact of corporate social responsibility in food industry in product‐harm crises. British Food Journal, 115, 108-123.
Audretsch D.B., Mahmood T. (1995): New Firm Survival: New Results Using a Hazard Function. The Review of Economics and Statistics, 77, 97-103.
Barrage L., Chyn E., Hastings J. (2014): Advertising as Insurance or Commitment? Evidence from the BP Oil Spill (No. w19838). National Bureau of Economic Research.
Beck T., Levine R. (2002): Industry growth and capital allocation: does having a market-or bank-based system matter?. Journal of Financial Economics, 64: 147–180.
Bettis Richard A., Mahajan Vijay (1985): Risk/Return Performance of Diversified Firms. Management Science, 31, 785-799.
CSR Corporate Citizen Awards of Common Wealth Magazine (2018): CSR Corporate Citizen Awards. Available at
Dellios R., Yang X.H., Yilmaz N.K. (2009): Food safety and the role of the government implications for CSR policies in China. I-Business, 1: 75–84.
Evans David S. (1987): The Relationship Between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries. The Journal of Industrial Economics, 35, 567-581.
Evans David S. (1987): Tests of Alternative Theories of Firm Growth. Journal of Political Economy, 95, 657-674.
Emirmahmutoglu Furkan, Omay Tolga (2014): Reexamining the PPP hypothesis: A nonlinear asymmetric heterogeneous panel unit root test. Economic Modelling, 40, 184-190.
Fama E.F., MacBeth J.D. (1973): Risk, Return, and Equilibrium: Empirical Tests. Journal of Political Economy, 81, 607-636.
FAMA E.F., FRENCH K.R. (1995): Size and Book-to-Market Factors in Earnings and Returns. The Journal of Finance, 50, 131-155.
Gibrat R. (1931): Les Inégalités Économiques. Paris: Librairie du Recueil Sirey.
Hall Graham C., Hutchinson Patrick J., Michaelas Nicos (2004): Determinants of the Capital Structures of European SMEs. Journal of Business Finance <html_ent glyph="@amp;" ascii="&amp;"/> Accounting, 31, 711-728.
Huda Miftachul, Mulyadi Dedi, Hananto April Lia, Nor Muhamad Nasrul Hisyam, Mat Teh Kamarul Shukri, Don Abdul Ghafar (2018): Empowering corporate social responsibility (CSR): insights from service learning. Social Responsibility Journal, 14, 875-894.
Im K.S., Pesaran M.H., Shin Y. (2003): Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115: 53–74.
Jovanovic Boyan (1982): Selection and the Evolution of Industry. Econometrica, 50, 649-670.
Knowles Tim, Moody Richard, McEachern Morven G. (2007): European food scares and their impact on EU food policy. British Food Journal, 109, 43-67.
Kong Dongmin (2012): Does corporate social responsibility matter in the food industry? Evidence from a nature experiment in China. Food Policy, 37, 323-334.
List J.A., Momeni F. (2017): When Corporate Social Responsibility Backfires: Theory and Evidence from a Natural Field Experiment (No. w24169). National Bureau of Economic Research.
Manning L. (2018): Corporate Social Responsibility. Food Ethics Education. Springer, Cham: 121–146.
Maloni M.J., Brown M.E. (2006): Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry. Journal of Business Ethics, 68, 35-52.
Omay T., Öznur K.E. (2010): Re-examining the threshold effects in the inflation–growth nexus with cross-sectionally dependent non-linear panel: Evidence from six industrialized economies. Economic Modelling, 27, 996-1005.
Pesaran M.H., Schuermann T., Weiner S.M. (2004): Modeling regional interdependencies using a global error-correcting macroeconometric model. Journal of Business & Economic Statistics, 22: 129–162.
Smith Aaron C.T., Westerbeek Hans M. (2007): Sport as a Vehicle for Deploying Corporate Social Responsibility. Journal of Corporate Citizenship, 2007, 43-54.
Smith N. Craig, Read Daniel, Lopez Sofia (2018): CSR Halo: The Gift that Keeps on Giving?. SSRN Electronic Journal, , -
Ucar Nuri, Omay Tolga (2009): Testing for unit root in nonlinear heterogeneous panels. Economics Letters, 104, 5-8.
Taiwan Economic Journal (TEJ) (2018): Taiwan Economic Journal database. Taiwan Economic Journal Co. Ltd. Available at
download PDF

© 2020 Czech Academy of Agricultural Sciences | Prohlášení o přístupnosti