An analysis of the influence of financial performance variables on the adherence of companies to the Global Compact Colombia
Keywords:
Social Responsibility, Profitability, Probit, Logit, Global CompactAbstract
The objective of this article is to identify how the performance of financial variables such as return on assets (ROA), return on equity (ROE), the level of leverage and the size of the company; they modify the probability that a company is adhered or not to the Global Compact (GC), as a variable of Social Responsibility (RS). To explain why companies take SR measures and the effects they have within a company, the literature proposes the hypotheses of: social impact, availability of funds, compensation, managerial opportunism and neutrality. In order to meet the proposed objective, the Logit and Probit models were used to analyze the data of a thousand companies obtained for the years 2016 and 2017 from Superintendencia de Sociedades. The most outstanding result of this research points out that the two financial ratios of profitability and leverage did not have a major influence on the probability that companies decide to adhere to the GC, which corroborates the neutrality hypothesis, while the size variable of the company was relevant, which could be coincident with the hypothesis of availability of funds.
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