Nonlinear causality between CSR and firm performance using NARX model: evidence from France

The aim of this paper is to understand the true dynamic link between corporate social responsibility and company performance. Importance is given to new models and methods to clarify the empirical link between CSR and FP. In fact, the sample of French non-financial listed companies is from 2004 to 2020, and the nonlinear autoregressive NARX model is considered as a new test method. At this level, we found a bidirectional relationship between corporate social responsibility and corporate performance. In addition, the survey results show that French companies place great emphasis on social and environmental issues to improve their performance. The findings highlight a causal relationship between CSR and board gender diversity. The female-headed companies' have balanced between social, environmental, and economic investments. This research aims to deepen our understanding of the significant impact of CSR strategies on economic development and social environmental challenges.