Corporate Social Responsibility and Financial Performance of Hotels in Zanzibar

Main Article Content

Zuhura Mohamed Abdallah
Fatma Ali Mohamed

Abstract

Corporate Social Responsibility is gaining more awareness in Zanzibar as the firms are recognizing the important role it plays on firm’s performance. This research empirically examines the effect of corporate social responsibility and financial performance of hotels in Zanzibar. CSR is measured by cost paid for corporate social responsibility while financial performance is measured by using profitability measures such as ROA and ROE.

By utilizing panel data of 4 hotels for 7 years period from 2011-2017, the study uses ordinary least square method-random effect regression, model. The study found CSR has a significant positive effect on ROA and ROE of hotels in Zanzibar. The study also found that control variables (i.e leverage, R & D, size) have a significant effect on ROA and ROE. The study recommends more investment in CSR as a way of boosting hotels profitability.

Keywords:
Corporate social responsibility, financial performance, hotel

Article Details

How to Cite
Abdallah, Z., & Mohamed, F. (2019). Corporate Social Responsibility and Financial Performance of Hotels in Zanzibar. Journal of Economics, Management and Trade, 23(5), 1-8. https://doi.org/10.9734/jemt/2019/v23i530142
Section
Original Research Article

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