Does corporate social responsibility protect shareholder value from the shock of COVID-19? Evidence from China
Accounting and Finance
; 2022.
Article
in English
| Scopus | ID: covidwho-2136581
ABSTRACT
Our study examines whether and how increased engagement in social responsibility activities by a firm affects movements in its stock prices during the COVID-19 public health crisis, which is regarded as an exogenous shock to economic ties between focal firms and their customers, employees, and suppliers. We find that corporate social responsibility has an inverted U-shaped relationship with shareholder value. The nonlinear relationship is more dominant at firms with higher cash-flow constraints and weaker cost-adjustment capabilities. Our research also generates meaningful implications for business practices. © 2022 Accounting and Finance Association of Australia and New Zealand.
Full text:
Available
Collection:
Databases of international organizations
Database:
Scopus
Language:
English
Journal:
Accounting and Finance
Year:
2022
Document Type:
Article
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