Restart economy in a resilient way: The value of corporate social responsibility to firms in COVID-19

Juanjuan Zhang, Yuming Zhang and Yongkun Sun

Finance Research Letters, 2022, vol. 47, issue PB

Abstract: This paper investigates the importance of corporate social responsibility (CSR) to firms in COVID-19. Using data from listed companies in China, we find that a high-level of CSR is conducive to improving stock returns. Importantly, the mechanism analysis shows that corporate social responsibility can bring social trust capital to enterprises, and it can improve the corporate performance during the epidemic. Additional tests show that the impacts of employee protection and environmental protection responsibilities on stock returns are even more significant. Our findings reveal the importance of the socially responsible investing and have important policy implications.

Keywords: Corporate social responsibility; COVID-19 pandemic; Financial market reaction; Firm performance (search for similar items in EconPapers)
JEL-codes: D22 G01 G34 M14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322000125
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322000125

DOI: 10.1016/j.frl.2022.102683

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().