Assessment of returns from Zero impact of strategic strategy on firm’s performance

Abstract

Critics argue sharply and blamed top management inappropriately for utilizing corporate strategic philanthropy as a tool to redeem their fallen image instead of the interest of the company. Nevertheless, there is a school of thought that believes that strategic philanthropy model have no impacts on the corporate performance especially in the recession period. This study focuses on Measurement of the impact of strategic philanthropy behavior on profitability measures: ROA, ROE. This study also measure Gross margin and Turnover model of strategic philanthropy in the selected firms. This research begins with audited consolidated financial statement of 59 listed companies comprising of 471 subsidiaries that were operating in the four years under study to obtain the secondary data. Initial approach of Statistical analysis method using IBM SPSS version 21 is used to analyze the data obtained from the secondary source. The research findings support the null hypothesis that there is no evidence to support that strategic philanthropy have impact on firms’ performance. Based on the research findings, managerial implications and directions for future research are discussed.

Keywords: Return on assets (ROA), Return on equity (ROE), Gross margin, Turnover, Subsidiaries