Corporate social responsibility and profit volatility: theory and empirical evidence
Leonardo Becchetti,
Nazaria Solferino () and
Maria Elisabetta Tessitore ()
Additional contact information
Nazaria Solferino: Associazione Italiana per la Cultura della Cooperazione e del Non Profit, Postal: P.le della Vittoria, 15, 47121 Forlì,, http://www.aiccon.it
Maria Elisabetta Tessitore: Associazione Italiana per la Cultura della Cooperazione e del Non Profit, Postal: P.le della Vittoria, 15, 47121 Forlì, http://www.aiccon.it
No 129-2013, AICCON Working Papers from Associazione Italiana per la Cultura della Cooperazione e del Non Profit
Abstract:
Corporate social responsibility implies extra care for the wellbeing of stakeholders different from shareholders. In our theoretical model we show that, when this principle implies that more CSR oriented companies incorporate stakeholders’ wellbeing constraints, it translates into higher sensitivity of profits to economic shocks. Our empirical analysis finds support for this hypothesis showing that CSR attributes which relate to positive contributions to stakeholders’ wellbeing significantly and positively affects idiosyncratic profit volatility.
Keywords: corporate social responsibility; stock price volatility (search for similar items in EconPapers)
JEL-codes: D53 D92 E22 G32 M14 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2013-11-30
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Journal Article: Corporate social responsibility and profit volatility: theory and empirical evidence (2016) 
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Persistent link: https://EconPapers.repec.org/RePEc:ris:aiccon:2013_129
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