Local boy does good: The effect of CSR activities on firm value

IF 3.6 2区经济学 Q1 BUSINESS, FINANCE

Journal of Banking & Finance Pub Date : 2025-01-31 DOI:10.1016/j.jbankfin.2025.107398

Zicheng Lei , Dimitris Petmezas , P. Raghavendra Rau , Chen Yang

引用次数: 0

Abstract

We examine the relation between home CEOs and corporate social responsibility (CSR). Our analysis shows home CEOs are associated with higher CSR engagement and increased firm value. These firms exhibit higher asset turnover, lower cost of equity, improved productivity, sales, and profit margins. Home CEOs focus more on community, environmental, and employee-related CSR, and are linked to reduced carbon emissions. This relationship is stronger in firms with higher local business concentration and investor monitoring. Firms led by home CEOs earn higher returns during recent crises. Our results suggest the value increase is not primarily due to agency effects and remain robust to endogeneity concerns. The study indicates a CEO’s community connection may influence CSR effectiveness, suggesting that mere CSR engagement may not suffice to boost trust and value. These results highlight the potential importance of local ties in corporate leadership and CSR strategy.

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本地男孩做好事：企业社会责任活动对企业价值的影响

我们研究了本土ceo与企业社会责任（CSR）之间的关系。我们的分析表明，本土ceo与更高的企业社会责任参与度和企业价值增加有关。这些公司表现出更高的资产周转率，更低的股本成本，更高的生产率，销售额和利润率。本土ceo更关注社区、环境和与员工相关的企业社会责任，并将其与减少碳排放联系起来。这种关系在本地业务集中度和投资者监督程度较高的公司中更为明显。在最近的危机中，由本土ceo领导的公司获得了更高的回报。我们的结果表明，价值的增加不是主要由于代理效应，并保持稳健的内生性问题。研究表明，CEO的社区关系可能会影响企业社会责任的有效性，这表明仅仅参与企业社会责任可能不足以提高信任和价值。这些结果突出了地方关系在企业领导和企业社会责任战略中的潜在重要性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Banking & Finance Multiple-

CiteScore

6.40

自引率

5.40%

发文量

262

期刊介绍： The Journal of Banking and Finance (JBF) publishes theoretical and empirical research papers spanning all the major research fields in finance and banking. The aim of the Journal of Banking and Finance is to provide an outlet for the increasing flow of scholarly research concerning financial institutions and the money and capital markets within which they function. The Journal''s emphasis is on theoretical developments and their implementation, empirical, applied, and policy-oriented research in banking and other domestic and international financial institutions and markets. The Journal''s purpose is to improve communications between, and within, the academic and other research communities and policymakers and operational decision makers at financial institutions - private and public, national and international, and their regulators. The Journal is one of the largest Finance journals, with approximately 1500 new submissions per year, mainly in the following areas: Asset Management; Asset Pricing; Banking (Efficiency, Regulation, Risk Management, Solvency); Behavioural Finance; Capital Structure; Corporate Finance; Corporate Governance; Derivative Pricing and Hedging; Distribution Forecasting with Financial Applications; Entrepreneurial Finance; Empirical Finance; Financial Economics; Financial Markets (Alternative, Bonds, Currency, Commodity, Derivatives, Equity, Energy, Real Estate); FinTech; Fund Management; General Equilibrium Models; High-Frequency Trading; Intermediation; International Finance; Hedge Funds; Investments; Liquidity; Market Efficiency; Market Microstructure; Mergers and Acquisitions; Networks; Performance Analysis; Political Risk; Portfolio Optimization; Regulation of Financial Markets and Institutions; Risk Management and Analysis; Systemic Risk; Term Structure Models; Venture Capital.