The impact of climate policy uncertainty on firm value: Does corporate social responsibility engagement matter?

Asil Azimli

Finance Research Letters, 2023, vol. 51, issue C

Abstract: This paper examines if corporate social responsibility (CSR) engagement can mitigate the negative impact of climate policy uncertainty (CPU) on firm valuation. Using a sample of firms in the Standards & Poor 1500 index over 2002–2021 we show that a higher-CSR-engagement offsets the negative impact of CPU on firms’ valuation. Further analyses imply that this insurance-like effect holds among the highest-CSR firms and stronger during the crisis period. Finally, high-CSR firms realize higher growth in operating profitability (OP), which offers a possible source for documented insurance-effect.

Keywords: Climate policy uncertainty; Corporate social responsibility; Firm value (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:51:y:2023:i:c:s1544612322006328

DOI: 10.1016/j.frl.2022.103456

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