Corporate Social Responsibility and Environmental Management · 2020 · 45 citations · 118 references
Firm PerformanceEconomic DevelopmentEducationManagementCorporate ResponsibilityCorporate ResponsesCsr Permanent ActivitiesInternational BusinessEconomicsOwnership StructureFirm ValueCorporate Social ResponsibilityCorporate GovernanceCorporate SustainabilityCorporate Social PerformanceFamily OwnershipFinanceCsr ActivitiesEmerging MarketBusinessCorporate FinanceBusiness StrategyFamily-owned BusinessSocial Responsibility
Abstract Prior research suggests that undertaking corporate social responsibility (CSR) activities affect firm value. We extend this line of research by considering CSR activities over a longer period (a consistent CSR behavior) and examine the impact of CSR permanency on firm value. Using a cross‐country sample of 600 top‐listed firms from four leading emerging economies, Brazil, Russia, India, and China (BRIC) over the period 2010–2018, we find that CSR permanency positively impacts firm value after controlling for various firm and country characteristics. This effect is observed more pronounced for family‐owned firms. Additional analysis reveals that permanent CSR activities in both social and environmental dimensions positively influence firm value, however, CSR permanent activities in the social dimension exert a larger impact on firm value. Our results make important contributions to theory and practice.
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