Corporate social responsibility and investor relationship management

Following the Fukushima Daiichi nuclear disaster, utilities firms increase their commitments to corporate social responsibility (CSR), emphasizing on addressing environmental concerns over non-environmental ones. The intensified focus on CSR is especially significant in utilities firms with substantial institutional ownerships. Concurrent to the increase in CSR, utilities firms also exhibit a decline in advertising expenditures, a trend more pronounced in firms facing more financial constraints. Our findings suggest that utilities firms substitute CSR for advertising following the Fukushima accident. This shift appears driven by investors’ heightened focus on environmental issues in the aftermath of the accident.