{"title":"Does corporate social responsibility protect shareholder value from the shock of COVID‐19? Evidence from China","authors":"Danni Chen, Xue Chen, Huiying Sun","doi":"10.1111/acfi.13017","DOIUrl":null,"url":null,"abstract":"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.","PeriodicalId":45436,"journal":{"name":"Intelligent Systems in Accounting Finance & Management","volume":"17 1 1","pages":""},"PeriodicalIF":3.5000,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Intelligent Systems in Accounting Finance & Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1111/acfi.13017","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 1
Abstract
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.