Corporate Governance and Firm Value: The Impact of Corporate Social Responsibility [Book Review]

Journal of Business Ethics 103 (3):351-383 (2011)
Abstract
This study investigates the effects of internal and external corporate governance and monitoring mechanisms on the choice of corporate social responsibility (CSR) engagement and the value of firms engaging in CSR activities. The study finds the CSR choice is positively associated with the internal and external corporate governance and monitoring mechanisms, including board leadership, board independence, institutional ownership, analyst following, and anti- takeover provisions, after controlling for various firm characteristics. After correcting for endogeneity and simultaneity issues, the results show that CSR engagement positively influences firm value measured by industry-adjusted Tobin’s q. We find that the impact of analyst following for firms that engage in CSR on firm value is strongly positive, while the board leadership, board independence, blockholders’ ownership, and institutional ownership play a relatively weaker role in enhancing firm value. Furthermore, we find that CSR activities that address internal social enhancement within the firm, such as employees diversity, firm relationship with its employees, and product quality, enhance the value of firm more than other CSR subcategories for broader external social enhancement such as community relation and environmental concerns.
Keywords corporate social responsibility  corporate governance  analyst following  firm value
Categories (categorize this paper)
DOI 10.1007/s10551-011-0869-y
Options
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history
Request removal from index
Download options
Our Archive


Upload a copy of this paper     Check publisher's policy     Papers currently archived: 27,215
Through your library
References found in this work BETA
Corporate Governance and CSR Nexus.Maretno A. Harjoto & Hoje Jo - 2011 - Journal of Business Ethics 100 (1):45 - 67.

View all 6 references / Add more references

Citations of this work BETA
Doing Well While Doing Bad? CSR in Controversial Industry Sectors.Ye Cai, Hoje Jo & Carrie Pan - 2012 - Journal of Business Ethics 108 (4):467 - 480.

View all 35 citations / Add more citations

Similar books and articles
Doing Well While Doing Bad? CSR in Controversial Industry Sectors.Ye Cai, Hoje Jo & Carrie Pan - 2012 - Journal of Business Ethics 108 (4):467 - 480.
Good Corporate Governance Initiative to Ensure Corporate Social Responsibility.Rama B. Rao - 2007 - International Corporate Responsibility Series 3:395-414.
Making, Buying, or Collaborating for Corporate Social Responsibility.Bryan W. Husted, David B. Allen & Jorge Rivera - 2005 - Proceedings of the International Association for Business and Society 16:136-141.

Monthly downloads

Added to index

2011-10-14

Total downloads

171 ( #26,545 of 2,164,539 )

Recent downloads (6 months)

21 ( #16,461 of 2,164,539 )

How can I increase my downloads?

My notes
Sign in to use this feature


Discussion
Order:
There  are no threads in this forum
Nothing in this forum yet.

Other forums