THE RELATIONS AMONG THE INSTITUTIONAL INVESTORS, CORPORATE SOCIAL PERFORMANCE, AND FIRM PERFORMANCE: A CASE STUDY OF RESOURCES INDUSTRY IN SET

Abstract

Currently, the global large institutional investors are questioning about corporate social performance besides the profit; this is the focus on the stakeholders both inside and outside the organization. It is a strategy that increases reliability and boosts long-term growth for the organization, especially for the resources business that considerably affects society and environment. Consequently, it is highly necessary to pay attention on the corporate social performance. This study aimed at examining the relations among the institutional investors, corporate social performance, and firm performance of companies in the group of resources industry, and at studying the factors that affect such variables. It was found from the study that the firm with good performance would led to increased corporate social performance, thus attracting institutional investors. Also, the firm with the increased proportion of shareholding of institutional investors and corporate social performance would lead to better performance as well. It was found that the size of business leads to the increased proportion of shareholding of institutional investors, corporate social performance, and performance; while the proportion of executives and the committee would lead to the decrease of institutional investors and corporate social performance, but leading to the better performance. The element of independent directors and non-executive directors leads to the decrease of corporate social performance.