Linking best corporate citizens and financial performance in the semiconductor industry: A study of accounting-based financial measurements

by Folino, Jose A., Ph.D., CAPELLA UNIVERSITY, 2009, 134 pages; 3359008

Abstract:

Recent ethical and legal developments in the business world have prompted research pertaining to the area of corporate citizenship and its close relationship to corporate social responsibility. The goals of this dissertation were to introduce the topic of corporate citizenship in an attempt to better understand what this means to the business world and secondly to measure its impact on the bottom line. This research paper linked best corporate citizens and financial performance in a single industry, the semiconductor industry, in an attempt to achieve both of the aforementioned goals.

To address the research question, “What is the impact on the Gauging Group, made up of organizations categorized as good corporate citizens, relative to profit margin, total asset turnover, equity multiplier, or return on equity?”, this study utilized independent-samples t tests to determine and evaluate the relationship between two groups and eight accounting-based financial performance measurements; revenue, net income, total assets, common equity, profit margin, total asset turnover, equity multiplier, and return on equity. Group 1, the Gauging Group, consisted of U.S. corporations within the semiconductor industry which made the list of Business Ethics 100 Best Corporate Citizens. Group 2 consisted of the remaining U.S. corporations within the same industry. Furthermore, a multivariate analysis of variance (MANOVA) was used to evaluate the relationship between the eight accounting-based financial performance measurements and the two groups.

The results of MANOVA revealed that corporations being identified as either Group 1 or Group 2 has a significant effect on the eight different measurements of financial performance. Furthermore, the overall results of this study, based on data for 109 U.S. corporations within the semiconductor industry with a SIC code of 3674, revealed that corporations recognized as best corporate citizens have a positive relationship on the measurements of financial performance. Moreover, the findings in this study imply that companies are more socially responsible when they have larger revenue streams and higher net income.

AdviserMary E. Kasala
SchoolCAPELLA UNIVERSITY
Source TypeDissertation
SubjectsAccounting; Management
Publication Number3359008

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