CSR permanency, family ownership, and firm value: Evidence from Emerging Economies.

Muhammad Awais; Sana Noor; Abubakr Saeed; Muhammad Saad Baloch

Abstract:

Prior research suggests that undertaking corporate social responsibility (CSR) activities affect firm value. We extend this line of research by considering CSR activities over a longer period (a consistent CSR behavior) and examine the impact of CSR permanency on firm value. Using a cross‐country sample of 600 top‐listed firms from four leading emerging economies, Brazil, Russia, India, and China (BRIC) over the period 2010–2018, we find that CSR permanency positively impacts firm value after controlling for various firm and country characteristics. This effect is observed more pronounced for family‐owned firms. Additional analysis reveals that permanent CSR activities in both social and environmental dimensions positively influence firm value, however, CSR permanent activities in the social dimension exert a larger impact on firm value. Our results make important contributions to theory and practice.

research from:

• Foundation University - Faculty of Management Sciences

Year:

2020

Type of Publication:

Article

Journal:

Corporate Social Responsibility and Environmental Management

Volume:

27

Number:

4

Pages:

1 to 15

Month:

3

DOI:

https://doi.org/10.1002/csr.1953