Analysis of corporate social responsibility of the African ‘internationalisers’ versus non-African founded MNCs

Abstract

This study analysed the corporate social responsibility (CSR) performances of non-African founded multinational corporations (NAFMNCs) and African founded corporations with transnational footprints (African internationalisers) and the effects of firm features using fixed and random effects estimators. A positive effect of firm age on CSR was found, which was relatively high for African internationalisers (AIs). Being an AI or NAFMNC is a valid factor that separates the CSR performances of the firms. There was no evidence that firm size and profitability determined CSR in both groups of companies, although the full sample results showed some evidence of size effect. CSR showed a positive impact on equity market performance, largely for the NAFMNCs. Firm size had a positive impact on stock price while ageing suggested a negative effect. The effect of profitability on stock price was insignificant. Performances of AIs and NAFMNCs differ across various CSR dimensions and the paper provides implications.