Corporate social responsibility and cash flow volatility: The curvilinear moderation of marketing capability

Wenbin Sun and Yuan Ding

Journal of Business Research, 2020, vol. 116, issue C, 48-59

Abstract: CSR’s beneficial roles on firm financial performance have been well documented. However, the relationships existing in the literature are largely assumed to be linear. In this research, we propose a U-shaped relationship between CSR and firm cash flow volatility to demonstrate CSR’s dynamic implication on the performance instability and therefore extend the understanding of CSR into a new area involving firm performance risk factors. Further, we incorporate another key firm characteristic, marketing capability, to formulate the interactive associations between CSR and firm market-side ability toward better risk management. The results show that CSR may reduce firm cash flow volatility at low and moderate levels but will increase the volatility when the engagement is high. However, a firm with high marketing capability will eliminate the negative impact of CSR.

Keywords: CSR; Cash flow volatility; Curvilinear moderation; Marketing capability; Firm risk (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S014829632030309X
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:jbrese:v:116:y:2020:i:c:p:48-59

DOI: 10.1016/j.jbusres.2020.05.016

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().