THE RELATIONSHIP OF CORPORATE PERFORMANCE SOCIAL TO INSTITUTIONAL INVESTORS AND FIRM PERFORMANCE OF LISTED COMPANIES IN THE STOCK EXCHANGE OF THAILAND : 2008 – 2013

Abstract

This study aimed at studying corporate social performance and the relationship of corporate social performance (CSP) to Institutional investors (INST) and firm performance (ROA/Tobin’s Q) of listed companies in the Stock Exchange of Thailand in 8 groups of industries. The Tobit Model was used for analysis. The significant level was determined at 0.05. It was found from the study that business with maximum CSP was resources industry. On relations, it was found that in non-financial industries, ROA/Tobin’s Q was positively associated with CSP; however, CSP of resources industry and property & construction industry caused the Tobin’s Q to decrease. For financial industries, it was found that CSP caused INST and ROA/Tobin’s Q to increase, while the INST and Tobin’s Q also caused CSP to increase. However, CSP of the large financial businesses caused ROA/Tobin’s Q to decrease. When classifying CSP in social dimension (CSPS) and product’s quality dimension (CSPS), it was found that ROA/Tobin’s Q caused CSPS to increase, and Tobin’s Q caused CSPP to increase in the non-financial industries. Besides, it was found that INST and Tobin’s Q caused CSPS to increase in financial industries. In addition, it was found that CSPS caused INST and Tobin’s Q to increase; this was consistent with CSP in overall also.