Applying Discriminant Analysis and LVQ Neural Network to an Empirical Study of Corporate Social Responsibility on Taiwanese Electronics Companies

Abstract

In recent years, the issue of corporate social responsibility has gradually been valued, some literatures have pointed out that financial performance and corporate social responsibility have a positive relationship, which makes investors and the public have positive views of general companies’ corporate social responsibility activities. Based on the evaluation of Taiwan’s "CommonWealth Magazine" from 2007 to 2017 which issued the Corporate Social Responsibility Award shortlist, this study selected the listed Taiwanese electronics companies for both awarded and un-awarded as the empirical samples for clustering. The corporate financial performance ratios and the corporate governance are used as input variables. According to the empirical results, most of the Taiwanese electronics companies that have been shortlisted for CSR indicators can be correctly identified and clustered. The empirical information can provide investors and shareholders a reference of investment. and encourage investors to actively invest and stabilize their psychology when investing.