Corporate Social Responsibility and Firm Performance: Evidence from the COVID-19

The relationship between corporate social responsibility (CSR) and corporate performance has been a controversial topic. The COVID-19 pandemic raised a great deal of public interest in CSR and provided a special opportunity for research related to CSR. This study evaluates the impact of CSR on...

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Main Author: Chen, YH
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2022
Online Access:https://eprints.nottingham.ac.uk/70879/
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author Chen, YH
author_facet Chen, YH
author_sort Chen, YH
building Nottingham Research Data Repository
collection Online Access
description The relationship between corporate social responsibility (CSR) and corporate performance has been a controversial topic. The COVID-19 pandemic raised a great deal of public interest in CSR and provided a special opportunity for research related to CSR. This study evaluates the impact of CSR on corporate performance in the context of the COVID-19 pandemic. Result shows that the impact of CSR on corporate performance during COVID-19 is negative. Using difference-in-differences (DID) regression, this study finds that CSR companies experienced a significant negative decline in corporate performance during COVID-19, suggesting that CSR activities during this crisis period resulted in overinvestment. The estimation of the dynamic treatment effects suggests that the negative impact caused by CSR was dynamically sustained in the post-COVID-19 crisis period. This study further shows that such negative impact is only significant among large CSR firms. This study is valid for a range of robustness tests. Keywords: corporate social responsibility, firm value, pandemic, financial crisis
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spelling nottingham-708792023-07-07T10:50:46Z https://eprints.nottingham.ac.uk/70879/ Corporate Social Responsibility and Firm Performance: Evidence from the COVID-19 Chen, YH The relationship between corporate social responsibility (CSR) and corporate performance has been a controversial topic. The COVID-19 pandemic raised a great deal of public interest in CSR and provided a special opportunity for research related to CSR. This study evaluates the impact of CSR on corporate performance in the context of the COVID-19 pandemic. Result shows that the impact of CSR on corporate performance during COVID-19 is negative. Using difference-in-differences (DID) regression, this study finds that CSR companies experienced a significant negative decline in corporate performance during COVID-19, suggesting that CSR activities during this crisis period resulted in overinvestment. The estimation of the dynamic treatment effects suggests that the negative impact caused by CSR was dynamically sustained in the post-COVID-19 crisis period. This study further shows that such negative impact is only significant among large CSR firms. This study is valid for a range of robustness tests. Keywords: corporate social responsibility, firm value, pandemic, financial crisis 2022-09-08 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/70879/2/Waiting%20for%20EC%20outcome_20345476_BUSI4019_2021_22.pdf Chen, YH (2022) Corporate Social Responsibility and Firm Performance: Evidence from the COVID-19. [Dissertation (University of Nottingham only)]
spellingShingle Chen, YH
Corporate Social Responsibility and Firm Performance: Evidence from the COVID-19
title Corporate Social Responsibility and Firm Performance: Evidence from the COVID-19
title_full Corporate Social Responsibility and Firm Performance: Evidence from the COVID-19
title_fullStr Corporate Social Responsibility and Firm Performance: Evidence from the COVID-19
title_full_unstemmed Corporate Social Responsibility and Firm Performance: Evidence from the COVID-19
title_short Corporate Social Responsibility and Firm Performance: Evidence from the COVID-19
title_sort corporate social responsibility and firm performance: evidence from the covid-19
url https://eprints.nottingham.ac.uk/70879/