Management Science· 2013Q1
The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness
- 2,436citations
- Q1SCImago
- 2013year
Short summary
Corporate Social Responsibility (CSR) positively impacts firm value, but only for companies with high customer awareness, indicated by advertising spending.
AI-generated from the title and abstract; the full text is not read.
Key points
- CSR positively correlates with firm value when customer awareness is high.
- Customer awareness is proxied by advertising expenditures.
- The CSR-firm value relationship is negative or insignificant with low customer awareness.
- A poor prior reputation reverses the moderating effect of customer awareness.
AI-generated from the title and abstract; the full text is not read.
Abstract
This paper shows that corporate social responsibility (CSR) and firm value are positively related for firms with high customer awareness, as proxied by advertising expenditures. For firms with low customer awareness, the relation is either negative or insignificant. In addition, we find that the effect of awareness on the CSR–value relation is reversed for firms with a poor prior reputation as corporate citizens. This evidence is consistent with the view that CSR activities can add value to the firm but only under certain conditions. This paper was accepted by Bruno Cassiman, business strategy.
The authors' abstract, as published at the source. Management Science, 2013 · DOI ↗
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Field: Strategy and Management
Strategy and ManagementBusiness, Management and Accounting