Does it pay to outclass? Corporate Social Responsibility and its impact on Firm Value

Author

C. Ferreira
David K. DING, Singapore Management UniversityFollow
U. Wongchoti

Publication Type

Conference Paper

Publication Date

10-2014

Abstract

We show that conventional aggregation of corporate social responsibility (CSR) raw scores and its interpreted impact on firm value is less than reliable. Instead, the value impact of CSR activities relies heavily on the industry-specific relative position of the firm. Firms that distinguish themselves over their peers are associated with an increased value. This finding is robust and holds for both responsible and irresponsible behavior. Information concerns and portfolio construction allude to a possible CSR clientele, suggesting the existence of an optimal CSR level. Our peer-effect results are robust to unobserved heterogeneity.

Keywords

Corporate Social Responsibility, CSR, Corporate Governance, FirmValue, Stakeholder, Asset Pricing, Environmental

Discipline

Business

Publication

Financial Management Association Conference

City or Country

Nashville, U.S.A.

Citation

Ferreira, C.; DING, David K.; and Wongchoti, U.. Does it pay to outclass? Corporate Social Responsibility and its impact on Firm Value. (2014). Financial Management Association Conference.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/4426

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.