The Relationship Between Corporate Social Responsibility and Financial Performance Stability: The Moderating Effects of Board Diversity

This study investigates the impact of corporate social responsibility (CSR) activities on financial performance stability, with a focus on the moderating effect of board diversity. Empirical results reveal that robust CSR performance significantly reduces the standard deviation of return on equity, enhancing financial performance stability. Conversely, board diversity increases performance volatility due to heterogeneity among members. Nevertheless, considering the moderating effect of board diversity, companies with a higher degree of diversity board often place greater emphasis on long-term CSR and sustainability goals, which strengthens the impact of CSR on the stability of financial performance. This underscores that with a diverse board, companies can more effectively develop and implement CSR strategies, thereby maintaining stable financial performance in uncertain market environments.