EconPapers    
Economics at your fingertips  
 

CSR Performance and the Value of Cash Holdings: International Evidence

Mohamed Arouri () and Guillaume Pijourlet ()
Additional contact information
Guillaume Pijourlet: Université Clermont Auvergne, Université d’Auvergne, EA3849, CRCGM

Journal of Business Ethics, 2017, vol. 140, issue 2, No 5, 263-284

Abstract: Abstract Using a worldwide sample, we examine whether corporate social responsibility (CSR) performance has an impact on the value of cash holdings. We find that investors assign a higher value to cash held by firms that have a high CSR rating. This result is consistent with the idea that CSR policies are a means for managers to act in the shareholders’ interests by mitigating conflicts with stakeholders. Finally, we reveal that CSR performance has a positive impact on the value of cash holdings only for firms which operate in countries where shareholders are well protected from expropriation by managers and in countries where the institutional quality is high.

Keywords: Corporate social responsibility; Cash holdings; Investor protection; Value of cash (search for similar items in EconPapers)
JEL-codes: G32 G34 M14 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10551-015-2658-5 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: CSR Performance and the Value of Cash Holdings: International Evidence (2017)
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:kap:jbuset:v:140:y:2017:i:2:d:10.1007_s10551-015-2658-5

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10551/PS2

DOI: 10.1007/s10551-015-2658-5

Access Statistics for this article

Journal of Business Ethics is currently edited by Michelle Greenwood and R. Edward Freeman

More articles in Journal of Business Ethics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-06-04
Handle: RePEc:kap:jbuset:v:140:y:2017:i:2:d:10.1007_s10551-015-2658-5