Does corporate social responsibility protect shareholder value from the shock of COVID‐19? Evidence from China
Accounting & Finance
; 2022.
Article
in English
| EuropePMC | ID: covidwho-2218546
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.
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Collection:
Databases of international organizations
Database:
EuropePMC
Language:
English
Journal:
Accounting & Finance
Year:
2022
Document Type:
Article
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