The impact of the dimensions of social performance on firm risk

Kais Bouslah, Lawrence Kryzanowski and M’Zali, Bouchra

Journal of Banking & Finance, 2013, vol. 37, issue 4, 1258-1273

Abstract: This paper examines the impact of the individual dimensions of social performance (SP) on firm risk (total and idiosyncratic) using 16,599 firm-year observations over the period 1991–2007. We find that firm risk for S&P500 members is positively affected by Employee, Diversity, and Corporate Governance concerns. On the other hand, Community (Diversity) strengths negatively (positively) affect their risk. As to non-S&P500 members, firm risk is positively affected by Employee concerns and Diversity strengths. However, firm risk of non-S&P500 members is negatively affected by Environment strengths. The direction of causation between firm risk and SP depends on the dimension examined.

Keywords: Volatility; Idiosyncratic risk; Social performance; Strengths; Concerns (search for similar items in EconPapers)
JEL-codes: G32 M14 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (132)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:37:y:2013:i:4:p:1258-1273

DOI: 10.1016/j.jbankfin.2012.12.004

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