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http://dx.doi.org/10.22156/CS4SMB.2020.10.06.070

SG&A Expenditures, Corporate Social Responsibility, and Future Firm Performance  

Lim, Seung-Yeon (Department of Business Administration, Kookmin University)
Publication Information
Journal of Convergence for Information Technology / v.10, no.6, 2020 , pp. 70-76 More about this Journal
Abstract
This study examines whether there is a moderating effect of corporate social responsibility(CSR) on the relation between sales, general, and administrative(SG&A) expenditures and future corporate performance. SG&A expenditures are decomposed into maintenance and investment components and the latter component is focused. Using 968 Korean firm-year observations with CSR scores in the KOSPI market for the period of 2012-2017, this study investigates the relation between SG&A investment component and future corporate performance and then the moderate effect of CSR on its relation. Main results show that the SG&A investment component increases the future corporate performance and the moderate effect of CSR on its relation is more positively explicit. This finding implies that the effect of SG&A investment component on corporate performance is differentiated according to the level of CSR.
Keywords
SG&A expenditures; Investment component; Maintenance component; CSR; Corporate performance;
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