 Corporate headquarters relocation and CSR performanceAli Fatemi, Iraj Fooladi, Oumar Sy and Ashraf Zaman International Review of Economics & Finance, 2024, vol. 89, issue PB, 622-637 Abstract: This study examines the relationship between corporate headquarters relocation decisions and corporate social responsibility (CSR). If the cost-savings motive is the primary force behind the relocation decision, we would expect to observe a reduction in CSR commitments of relocating firms. Our results fail to provide support for the occurrence of such a reduction, even when the move affords the firm an opportunity to do so. Following a move, firms do not reduce their CSR commitments. On the contrary, the average firm tends to significantly improve its CSR scores in the “environment” and “overall” categories. Our findings hold even after accounting for fixed effects, control variables, and addressing issues of heterogeneity and endogeneity. In investigating the driver of this outcome, we find that the local political environment of the new headquarters location plays an important role. In particular, a stronger tendency to increase CSR activities is mostly associated with relocations to a Democratic rather than a Republican state. Keywords: Corporate relocation; Corporate social responsibility; Political environment (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:reveco:v:89:y:2024:i:pb:p:622-637 DOI: 10.1016/j.iref.2023.10.014 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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