Case Assignment
Words 1,320
This paper examines two articles, with reference to the methodology and use of statistical information in the papers, the different criterion used in both the papers used. The idea is to see the procedure of the two researches and the models employed by the two articles. Both the papers deal with the social standing and performance or firms and use and incorporate archival data into their primary research to enhance it.
The first paper is by Simpson and Kohers, which tries to find a relationship between corporate social performance and the financial performance of the corporation. In this case the the sector used by the authors is the bnking sector, with total 385 bnks with CRA ratings of 284 as being outstanding and the remaining 101 rated as needs improvement. They used national bnks only, not using regional ones, another important criterion was that they were involved in the basic bnking business only. Two financial performance measures were used. The first return on assets which is a very commonly used financial indicator, the other one is the ratio of loan losses to the total number of loans taken. The social performance measure was the CRA rating.
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