Does Corporate Social Performance Pay Off? Assessing the Impact on Firm Value in Emerging Economy

Abstract

This research study investigates whether corporate social performance influences the firm value of Malaysian firms. This research study focuses on the shortcomings of current literature review by focusing the influence of corporate social performance on firm value of Malaysian firms for the period of 2012-2021. The data is collected from Thomson Reuter Datasteram. In general, corporate social performance and firm value holds an optimistic relationship. The empirical result shows that the outcome of corporate social performance on firm value is positive. Institutional and legitimacy theories criteria serve as an effective foundation for establishing social sustainability.  Policymakers and investors must consider these results when formulating economic policies and investment strategies, while enterprises in emerging nations such as Malaysia should recognize the potential implications of these elements and seek appropriate management strategies.