Corporate Social Responsibility and Investment Efficiency
By M. Benlemlih, Mohammad Bitar. Journal of Business Ethics, 2016
677 citations recorded by the source corpus.
Using a sample of 21,030 US firm-year observations that represents more than 3000 individual firms over the 1998–2012 period, we investigate the relationship between Corporate Social Responsibility (CSR) and investment efficiency. We provide strong and robust evidence that high CSR involvement decreases investment inefficiency and consequently increases investment efficiency. This result is consistent with our expectations that high CSR firms enjoy low information asymmetry and high stakeholder solidarity (stakeholder theory). Moreover, our findings suggest that CSR components that are directly related to firms’ primary stakeholders (e.g. employee relations, product characteristics, environment, and diversity) are more relevant in reducing investment inefficiency compared with those related to secondary stakeholders (e.g. human rights and community involvement). Finally, additional results show that the effect of CSR on investment efficiency is more pronounced during the subprime crisis. Taken together, our results highlight the important role that CSR plays in shaping firms’ investment behaviour and efficiency.
Subfields: Economics and Econometrics, Marketing, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/308fd550069475d78c748eb42be0e03f93e5ebc8
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
In Marketing
In Strategy and Management
Citations in the corpus
- The valuation relevance of environmental performance revisited: The moderating role of environmental provisions (2017, methodology): “To implement this approach, I first employ a probit model in which I regress the binary variable ENVPROVD on a number of firm-level variables (Benlemlih & Bitar, 2015; Hooghiemstra, Kuang, & Qin, 2015), such as SIZE for size effects, LEV for leverage, TOBINQ for growth opportunities (Dhaliwal, Li,…”
- Corporate social responsibility engagement and firm performance in Asia Pacific: The role of enterprise risk management (2019, methodology): “Following previous studies, we use the industry– year average of CSR (CSR_IND) as an instrumental variable (Benlemlih & Bitar, 2016; Samet & Jarboui, 2017).”