Corporate social responsibility, financial performance and risk in times of economic instability

Eric Braune (), Pablo Charosky and Lubica Hikkerova ()
Additional contact information
Eric Braune: INSEEC U Research Center–SBE
Lubica Hikkerova: IPAG Business School

Journal of Management & Governance, 2019, vol. 23, issue 4, No 10, 1007-1021

Abstract: Abstract This article examines the relationship between the social performance of companies and their financial performance, analyzed from the systematic risk perspective. The analysis is divided into two parts. We first investigate the relationship between the social performance of companies and their systematic risk. We then look at the link between social performance and the performance of the securities of the company. The empirical results show a negative relationship between social performance and systematic risk, resulting in a higher profitability of securities of high social performance in times of instability and depression in financial markets. The implementation of social responsibility strategies can therefore be regarded as insurance to limit sensitivity to systematic risk and preserve the value of the shareholders against the adverse effects of a crisis or bad economic conditions.

Keywords: Performance; CSR; Crisis; Risk; Stock market (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s10997-019-09476-y

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