Valuation effects of corporate social responsibility

Ali Fatemi, Iraj Fooladi and Hassan Tehranian

Journal of Banking & Finance, 2015, vol. 59, issue C, 182-192

Abstract: This paper develops a valuation model of the firm that provides for the expenditure of corporate resources in support of community, social or environmental causes. We show that under certain circumstances CSR expenditures create value for the firm. We also test our model by simulations and confirm that, at least under some conditions, CSR does pay off in the form of value creation.

Keywords: Corporate social responsibility; Valuation; Shareholders’ value (search for similar items in EconPapers)
JEL-codes: G30 G32 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (115)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:59:y:2015:i:c:p:182-192

DOI: 10.1016/j.jbankfin.2015.04.028

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