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ИД «Финансы и кредит»






Economic Analysis: Theory and Practice

Financial impact of stakeholder policy in conditions of economic instability: An empirical analysis of panel data

Vol. 19, Iss. 4, APRIL 2020

Received: 2 March 2020

Received in revised form: 12 March 2020

Accepted: 27 March 2020

Available online: 28 April 2020


JEL Classification: G30, M14, O16

Pages: 764–779


Badykova I.R. Kazan National Research Technological University (KNRTU), Kazan, Republic of Tatarstan, Russian Federation

ORCID id: not available

Subject. The article deals with a policy towards corporate stakeholders as a tool to enhance financial performance.
Objectives. The study aims at conceptualizing and presenting in a systematic way the accumulated knowledge on stakeholders' impact on business; identifying the influence of employee-related corporate policy on corporate financial performance in conditions of the informationally inefficient Russian market.
Methods. I employ general theoretical methods, including synthesis, deduction and induction, quantitative and empirical methods, namely the analysis of balanced panel data based on the application of random-effects and fixed-effects models.
Results. I conducted an empirical research to determine the relation between corporate social responsibility towards one of the most important stakeholder groups, i.e. the employees, and the corporate financial performance. The relation between expenditures on employees' education and development and the EBITDA margin was statistically insignificant. The value of coefficient using the core variables is negative for both models.
Conclusions. The analysis shows that against the backdrop of prolonged economic stagnation and weak market informational efficiency in Russia, the social responsibility towards company employees as measured by expenses on retraining and professional development has no statistically significant effect on financial performance. It is perceived as a discretionary expenditure, negatively affecting the financial results. However, in efficient financial markets, these expenses are viewed as investments, which in the long run may demonstrate positive results.

Keywords: socially responsible behavior, corporate social responsibility, stakeholder, financial performance, empirical analysis


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