Empirical results
This subsection reveals the findings of the analyses that evaluate the relationship between
VAIC, its dimensions in 2008 and the CSR activities of the previous year. Tables III-VI display
the regression results of the four models. The F statistics indicate that all estimated models
are significant. Furthermore, the R 2 values of the models range from 35 per cent to 50 per
cent, which demonstrates that the dependent variables can be partially explained by the
independent variables utilised.
The first model encompasses a broad perspective and reveals the effect of previous year’s
CSR activities on VAIC. The findings show that there is no significant relationship between
these two variables. Further evaluation of the results in Table III reveals the significant impact
of certain control variables on the dependent variable. As can be seen, there is a negative
and significant relationship between LEV07 and VAIC08. This may be due to the higher costs
of debt and capital associated with higher levels of borrowing. The high coefficient of this
control variable shows the large impact of financial risk on the dependent variable of the
analysis. Furthermore, profitability denoted by ROS07 is found to have a positive and
significant influence on the following year’s VAIC.
The following three models, which are displayed in Tables IV-VI, employ a more detailed
perspective by taking into account the dimensions of VAIC. However, no significant
relationship is observed between CSR and CEE, HCE and SCE of the following year. The
major reason for this finding is likely to be issues relating to time. It is obvious that CSR
activities require large investments and it takes a significant amount of time to realise the