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College of Business Theses and Dissertations
Corporate social responsibility; environmental stewardship; energy industry
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Stakeholder Capitalism: An Investigation Of The Linkage Between Corporate Social Responsibility And Financial Performance, Cynthia Walsh
Stakeholder Capitalism: An Investigation Of The Linkage Between Corporate Social Responsibility And Financial Performance, Cynthia Walsh
College of Business Theses and Dissertations
Utilizing a large sample of firms over a 13-year period, we examine the impact of ESG Score on profitability. While we fail to find a significant effect for the continuous ESG Score variable, we find conditions where Corporate Social Responsibility (CSR) plays an important role in financial performance. Specifically, after controlling for relevant firm characteristics and fixed effects, we find that the highest quartile of ESG Scores experience an average increase in return on assets of 4%. This effect is amplified for the CSR-sensitive energy industry. Additionally, CSR can play an important role in mitigating loss during times of economic …