The Direct and Moderating Effects of Endogenous Corporate Social Responsibility on Firm Valuation: Theoretical and Empirical Evidence from the Global Financial Crisis

Date

2020-06-14

Author

Hannah, Sean T.
Sayarı Marcum, Naz
Harris, Frederick H. deB
Cain, Carol L.

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

426
views

0
downloads

Research has produced inconclusive results concerning the effects of corporate social responsibility (CSR) on firm financial performance, with only 59 percent of studies demonstrating positive effects. Yet, still unaddressed is how CSR impacts the key driver of financial performance - firm growth. We develop new multidisciplinary theory integrating stakeholder and risk management theories with multi-period capital asset pricing. We test the direct and moderating effects of Social, Institutional, Strategic, and Technical CSR using a simultaneous equations model of endogenous CSR and Tobin's q ratio. Our 2004-12 sample of S&P 3000 firms show that all CSR dimensions directly bolster firm performance, while select dimensions moderate the relationship between firms' sales or asset growth and capitalized market value in the periods surrounding the 2008 Global Financial Crisis (GFC). These results deepen understanding of how different forms of CSR influence market value, and refine estimates of CSR's direct and moderating impacts on the growth-value relationship.

Subject Keywords

Management of Technology and Innovation, Strategy and Management, Business and International Management

URI

https://hdl.handle.net/11511/55825

Journal

JOURNAL OF MANAGEMENT STUDIES

DOI

https://doi.org/10.1111/joms.12586

Collections

Department of Business Administration, Article

Suggestions

OpenMETU
Core

Trust types, distrust, and performance outcomes in small business relationships: the pharmacy-drug warehouse case Sengun, Ayse Elif; Wasti Pamuksuz, Syeda Nazlı (Informa UK Limited, 2011-01-01) This study attempts to investigate the linkage among trust types, distrust, and relationship performance outcomes in the context of long-term supply agreement-type alliances between small business dyads. The results suggest a significant positive relationship among goodwill trust and risk-taking tendency, cooperation, satisfaction, and conflict resolution and a negative relationship between goodwill trust and transaction costs. Competence trust is found to have a positive relationship with cooperation, conf...
Using boolean- and fuzzy-logic-based methods to analyze multiple case study evidence in management research Oz, O (SAGE Publications, 2004-06-01) The case study method has been widely used as a research strategy in the management field. The issues of comparability and of generalizability when using this method, however, continue to raise profound challenges for researchers. Boolean- and fuzzy-logic-based methods offer a valuable basis for a contribution in this respect because they enable researchers to derive valid meaning from data and to introduce additional analytical rigor into case study research. Inspired by this opportunity, the present artic...
Revisiting Trust and Control Effects on Perceived Relationship Performance Sengun, Ayse Elif; Wasti Pamuksuz, Syeda Nazlı (SAGE Publications, 2009-02-01) This study investigates the interaction between trust, social control, output control, and perceived performance (measured as the buyer's satisfaction) for the relationship of pharmacies with their primary drug wholesalers, where both parties are SMEs.A model generated by qualitative analysis is tested with survey data from 360 Turkish pharmacies.The results suggest a positive association between trust and social control and a negative association between trust and output control, in addition to a substitut...
A relational perspective of institutional work Topal, Çağrı (Cambridge University Press (CUP), 2015-07-01) This study develops a relational model of institutional work. The past research implies that the nature of relationships between individual actors actually shapes the nature of institutional work the actors engage in. However, the research falls short of an explicit, systematic analysis of different relationships between the actors and their work implications. This study basically argues that the actors' power positions, which might be dominant or subordinate in relation to those of other actors, and their ...
Determination of recovery effort for a probabilistic recovery system under various inventory control policies Bayındır, Zeynep Pelin; Porras, E (Elsevier BV, 2006-12-01) In this study we investigate the desired level of recovery under various inventory control policies when the success of recovery is probabilistic. All the used and returned items go into a recovery process that is modelled as a single stage operation. The recovery effort is represented by the expected time spent for it. The effect of increasing recovery effort on the success probability together with unit cost of the operation is included by assuming general forms of dependencies. Alternative to recovered i...

Citation Formats

S. T. Hannah, N. Sayarı Marcum, F. H. d. Harris, and C. L. Cain, “The Direct and Moderating Effects of Endogenous Corporate Social Responsibility on Firm Valuation: Theoretical and Empirical Evidence from the Global Financial Crisis,” JOURNAL OF MANAGEMENT STUDIES, pp. 0–0, 2020, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/55825.