Stakeholder preference and strategic corporate social responsibility

Shantanu Banerjee, Swarnodeep Homroy and Aurélie Slechten

Journal of Corporate Finance, 2022, vol. 77, issue C

Abstract: This paper investigates the role of stakeholder preference on corporate social responsibility (CSR) strategies. Using a staggered difference-in-difference approach, we show that Indian firms increase CSR expenses when trade restrictions (Antidumping) are initiated against competing Chinese exports from countries with a high stakeholder preference for CSR. However, when these shocks emanate from countries with a lower stakeholder preference, CSR expenses remain unchanged. Capital expenditure and R&D of Indian firms increase following AD shocks, irrespective of their country of origin. Finally, CSR increases firm value only when the demand shocks originate from countries with a higher CSR preference. Collectively, we provide evidence for consumer-driven CSR strategies.

Keywords: Corporate social responsibility; Firm investment; International trade; Anti-dumping; India (search for similar items in EconPapers)
JEL-codes: D22 G32 M14 O12 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:77:y:2022:i:c:s0929119922001298

DOI: 10.1016/j.jcorpfin.2022.102286

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