RT Article
T1 Corporate Social Responsibility and Its Impact on Firms’ Investment Policy, Organizational Structure, and Performance
JF Journal of business ethics
VO 118
IS 2
SP 395
OP 412
A1 Erhemjamts, Otgontsetseg
A1 Li, Qian
A1 Venkateswaran, Anand
A2 Li, Qian
A2 Venkateswaran, Anand
LA English
YR 2013
UL https://ixtheo.de/Record/1785649515
AB This study examines the determinants of corporate social responsibility (CSR) and its implications on firms’ investment policy, organizational strategy, and performance. First, we find that firms with better performance, higher R&D intensity, better financial health, and firms in new economy industries are more likely to engage in CSR activities, while riskier firms are less likely to do so. We also find U-shaped relation between firm size and CSR, indicating that either very small or very large firms exhibit high levels of CSR strengths and concerns. Next, we find that firms’ CSR strengths relate favorably with their investments, organizational strategy, and performance, whereas CSR concerns and firm attributes are by and large negatively related. Using a 2SLS procedure, we verify that the CSR–performance relation is robust to corrections for endogeneity through reverse causation and/or biases introduced by time varying omitted variables. Finally, we find that the CSR–firm attributes relation is strengthened when the CEO’s incentives are below the sample median, suggesting that CSR participation is especially important when monetary incentives are lower than benchmark levels.
K1 organizational strategy
K1 Investment policy
K1 Firm Performance
K1 Corporate Social Responsibility
DO 10.1007/s10551-012-1594-x