Is corporate social responsibility a value-increasing investment? Evidence from antitakeover provisions
Shahbaz Sheikh ()
Global Finance Journal, 2018, vol. 38, issue C, 1-12
This study empirically tests whether corporate social responsibility (CSR) is a value-increasing investment by estimating the effect of antitakeover provisions on CSR. Results indicate that managerial entrenchment measured by the G-index of antitakeover provisions is negatively associated with CSR. However, this negative effect is driven by CSR strengths; G-index has no significant effect on CSR concerns. Overall, this study supports the stakeholder theory of CSR by showing that CSR is a value-increasing strategic investment, as entrenched managers tend to reduce CSR instead of overinvesting in it.
Keywords: CSR; Antitakeover provisions; Managerial entrenchment; Firm value (search for similar items in EconPapers)
JEL-codes: G32 G34 G38 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:38:y:2018:i:c:p:1-12
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