Corporate social responsibility and financial performance: the role of innovation - Is there a relationship between CSR and financial performance and does innovation moderate it?

Sammanfattning: This study aims to investigate whether there is a relationship between corporate social performance and corporate financial performance and if innovation has a moderating effect on the relationship. To examine this, we use fixed effects regression models on an unbalanced panel dataset consisting of firms listed on the Nordic stock exchanges and with active headquarters in the Nordic region between 2011 and 2021. Our results support a positive relationship between corporate social performance and corporate financial performance. Moreover, our results support innovation as a negative moderator for the relationship; thus, the relationship between corporate social performance and corporate financial performance is stronger in low-innovation firms.