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Full-Text Articles in Business
Does It Pay To Outclass? Corporate Social Responsibility And Its Impact On Firm Value, C. Ferreira, David K. Ding, U. Wongchoti
Does It Pay To Outclass? Corporate Social Responsibility And Its Impact On Firm Value, C. Ferreira, David K. Ding, U. Wongchoti
Research Collection Lee Kong Chian School Of Business
We show that conventional aggregation of corporate social responsibility (CSR) raw scores and its interpreted impact on firm value is less than reliable. Instead, the value impact of CSR activities relies heavily on the industry-specific relative position of the firm. Firms that distinguish themselves over their peers are associated with an increased value. This finding is robust and holds for both responsible and irresponsible behavior. Information concerns and portfolio construction allude to a possible CSR clientele, suggesting the existence of an optimal CSR level. Our peer-effect results are robust to unobserved heterogeneity.
Reading Between The Lines: Financial Reporting, Implied Corporate Social Responsibility And Corporate Financial Performance, C. Ferreira, David K. Ding, U. Wongchoti
Reading Between The Lines: Financial Reporting, Implied Corporate Social Responsibility And Corporate Financial Performance, C. Ferreira, David K. Ding, U. Wongchoti
Research Collection Lee Kong Chian School Of Business
We provide one of the first analyses of corporate social responsibility (CSR) and firm performance using only annual financial reports. We document a link between corporate financial performance (CFP) and CSR, although this is not always positive. Specifically, we investigate whether CSR performance can be implied from financial reporting and provide evidence that CSR information implied by financial reports have a significant association with CFP. Furthermore, we provide the first comprehensive study of CSR reporting and link it with CFP in New Zealand.