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ABSTRACT
While the concept of corporate social responsibility (CSR) has gained much attention and is currentlypracticed by many companies, it has yet to be empirically examined in the context of hotels and casinos,especially in regard to the potential effects of CSR on firm value and performance. As the findings on therelationship between CSR and financial performance have been inconclusive and this relationship hasbeen found to differ among industries, this study examines the relationship between CSR and firm valueand profitability for hotels and casinos. Results of the Durbin–Wu–Hausman (DWH) test and asubsequent two-stage least square (2SLS) method show that hotel companies’ CSR has a simultaneousand positive relationship with financial performance.

For casino companies, however, results show thatCSR has no simultaneous or particular effect on financial performance. Findings suggest that hotelcompanies can confidently and strategically increase CSR investment to enhance both short-term(profitability) and long-term performance (firm value). Casino companies need to carefully examine theeffects of CSR on financial performance, when making CSR-related decisions.1. IntroductionAfter the devastating Indian Ocean tsunami in 2004, hotelcompanies in Phuket, Thailand, actively engaged in variousactivities to restore local communities through efforts thatincluded making sympathetic and supportive public statements,raising funds, providing support for rebuilding homes and schools,and sponsoring orphans (Henderson, 2007).

 In recent years, manyhotel companies have initiated or continued various corporatesocial responsibility (CSR) efforts to conserve the environment,reduce social problems, and assist in developing communities.Along with the trend, casino companies have also startedpracticing CSR activities as discussed further in Section 2.However,despite efforts made by the casino industry and the public’sgradual acceptance of gambling as a legitimate leisure activity,casinos may still face the challenging notions that providingunchecked gambling is unethical and that casino operators shouldbe more socially responsible.Companies execute CSR activities for various benefits: toimprove corporate images, to enhance the morale of theiremployees, to improve employee retention rates, to build soundrelationships with governments and communities, and to respondto the growing expectations of customers and social groups(Henderson, 2007; Jones et al., 2006; Tsoutsoura, 2004).

As theconcept of CSR is now widely recognized, not only by the public,but also embraced and practiced by companies (Barner, 2007;Jones et al., 2006), it becomes critical to determine if CSRinvestment actually increases firm value and profitability. Giventhat the bottom line (fundamental goal) for a company is tomaximize its value (Friedman, 1970), it has become importantconsiderations for companies to judiciously invest in CSR activities,which concurrently can maximize firms’ value and profitability.Nonetheless, little has been empirically examined regarding theimpacts of such activities on firms’ financial goals 留学生论文https://www.51lunwen.org/(maximizedvalue and financial profitability) in the context of hotels andcasinos.According to the mainstream CSR literature, the findings on therelationship between CSR and fin本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。