Understanding the Relationship between Corporate Social Responsibility and Firm Performance: The Roles of Capital Structure and Regional Culture

Abstract

This conceptual work explores the mechanism through which corporate social responsibility (CSR) affects firm performance, highlighting the role of capital structure and cultural influences. Unlike Hofstede’s framework of culture, this study applies a framework based on Chinese regional culture, which might be more suitable for companies in China. It also explores the role played by capital structure in the process. Taken together, this conceptual framework deepens the understanding of the link between CSR and firm performance and guides managerial decisions and CSR engagement.