 Does corporate social responsibility help mitigate firm-level climate change risk?Ashrafee T. Hossain and Abdullah Al Masum () Finance Research Letters, 2022, vol. 47, issue PB Abstract: The utility of corporate social responsibility (CSR), particularly during crisis times, has been a puzzle in the literature while climate change issues increasingly threaten corporate sustainability. Using a large sample of US firm-year observations from 2002 to 2018, we explore whether CSR provides corporate resilience against firm-level climate change risk (CCR) and find that CSR helps mitigate CCR substantially. Our regression model utilizes the firm fixed effect, and the outcome survives a battery of econometric validation tests, including a difference-in-difference test, Oster (2019), propensity score matching, entropy balancing, system GMM, and changed regression. Moreover, in the cross-sectional analyses, we find that CSR is more helpful in reducing CCR for firms with higher environmental, social, and governance (ESG) disclosure and those located in Republican-leaning states. Overall, our findings align with CSR's value-enhancing view that establishes CSR as a buffer against CCR from the strategic and policy-making perspectives. Keywords: Corporate social responsibility; Climate change risk; Value-enhancing; Mitigation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322001039 DOI: 10.1016/j.frl.2022.102791 Access Statistics for this article Finance Research Letters is currently edited by R. Gençay More articles in Finance Research Letters from Elsevier |
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