Document Type
Article
Publication Date
2023
DOI
10.1111/eufm.12475
Publication Title
European Financial Management
Volume
Article in Press
Pages
1-63
Abstract
We investigate whether firms engaging in corporate social responsibility (CSR) can preserve firm value during normal and unprecedented exogenous adverse events. Our evidence shows, in regular times, a negative relation between CSR engagement and firm value, but under adverse economic conditions, CSR protects firm value by decreasing firm risks. We also find that firms with high managerial attributes engage in greater CSR activities that benefit shareholders in both normal and aberrant financial times. Despite the controversy surrounding CSR, our evidence points out that CSR can be viewed as a set of intangible assets that can improve firm value across good and bad economic states when firms are run by high‐attribute managers.
Rights
© 2023 The Authors.
This is an open access article under the terms of the Creative Commons Attribution 4.0 International (CC BY 4.0) License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Original Publication Citation
Doukas, J. A., & Zhang, R. (2023). When does CSR payoff? European Financial Management. Advance online publication. https://doi.org/10.1111/eufm.12475
Repository Citation
Doukas, John A. and Zhang, Rongyao, "When Does CSR Payoff?" (2023). Finance Faculty Publications. 41.
https://digitalcommons.odu.edu/finance_facpubs/41
Included in
Business Law, Public Responsibility, and Ethics Commons, Finance Commons, Finance and Financial Management Commons