Risk and return efficiency of manufacturing firms: Integrating corporate social responsibility performance
This paper uses Data Envelopment Analysis to assess the performance of stocks in terms of return on assets, risk and their Environmental-Social-Governance score. Next, latent class analysis (LCA) is used to determine groups with similar performances and relates group membership to a set of covariates. The empirical application employs a set of 139 European manufacturing companies from 2016 to 2021 period. The results suggest stocks on average perform 25% below their potential in each of the three dimensions. The LCA suggests five groups and membership of lower performance classes significantly relates with lower size, R&D expenses and Tobin's Q.
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| Main Authors: | , |
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| Format: | Article/Letter to editor biblioteca |
| Language: | English |
| Subjects: | Life Science, |
| Online Access: | https://research.wur.nl/en/publications/risk-and-return-efficiency-of-manufacturing-firms-integrating-cor |
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