Publication Type
Working Paper
Version
publishedVersion
Publication Date
8-2012
Abstract
We evidence a non-linear relationship between firm value and corporate social responsibility, adding to the mixed evidence on this relationship. We show that corporate social responsibility exhibits a dynamic process, which is largely dependent on a firm’s industry, relative standing amongst peers and the distinction between responsible and irresponsible behavior. Surprisingly, we find that responsible behavior could sometimes destroy firm value, while irresponsible behavior could sometimes increase firm value. Endogeneity is mitigated through a novel process that allows us to keep constant the endogeneity inherent in this field, examining corporate social responsibility’s effect on firm value separately.
Keywords
Corporate Social Responsibility, CSR, Environmental Social Governance, ESG
Discipline
Finance and Financial Management
Research Areas
Finance
Identifier
10.2139/ssrn.1971484
Publisher
SSRN
Citation
DING, Kuan Yong David; FERREIRA, Christo; and UDOMSAK, Wongchoti.
Aiming for average: The effect of peer standing on the dynamic process of corporate social responsibility. (2012).
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5219
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2139/ssrn.1971484