Does corporate social responsibility help the survivorship of SMEs and large firms?

Francesco Gangi, Antonio Meles, Stefano Monferrà and Mario Mustilli

Global Finance Journal, 2020, vol. 43, issue C

Abstract: Using a sample of 2480 firms from 51 countries covering the period 2010–2015, we find that firms with more effective corporate governance mechanisms are more likely to be more engaged in CSR. Consistent with the stakeholder theory and the conflict resolution model, this result suggests that managers adopt effective governance mechanisms together with CSR engagement in an attempt to mitigate conflicts among stakeholders. Moreover, after controlling for endogeneity and simultaneity issues, we find that both CSR engagement and corporate governance mechanisms have a significantly negative influence on the firms' risk of financial distress measured by the Altman et al. model (1995). Our results also show that the favorable influence of CSR on the firms' capability of survivorship is more pronounced in SMEs than in large firms.

Keywords: CSR; ESG; Governance; Financial distress; SMEs (search for similar items in EconPapers)
JEL-codes: G30 G32 G34 M14 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:43:y:2020:i:c:s1044028317304106

DOI: 10.1016/j.gfj.2018.01.006

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