Lins, Karl V., Servaes, Henri and Tamayo, Ane ORCID: 0000-0001-7154-0221 (2017) Social capital, trust, and firm performance: the value of corporate social responsibility during the financial crisis. Journal of Finance, 72 (4). 1785 - 1824. ISSN 0022-1082
|
Text
- Accepted Version
Download (1MB) | Preview |
Abstract
During the 2008-2009 financial crisis, firms with high social capital, measured as corporate social responsibility (CSR) intensity, had stock returns that were four to seven percentage points higher than firms with low social capital. High-CSR firms also experienced higher profitability, growth, and sales per employee relative to low-CSR firms, and they raised more debt. This evidence suggests that the trust between the firm and both its stakeholders and investors, built through investments in social capital, pays off when the overall level of trust in corporations and markets suffers a negative shock.
Item Type: | Article |
---|---|
Official URL: | https://onlinelibrary.wiley.com/journal/15406261 |
Additional Information: | © 2017 The American Finance Association |
Divisions: | Accounting |
Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HG Finance |
JEL classification: | D - Microeconomics > D6 - Welfare Economics > D64 - Altruism G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M14 - Corporate Culture; Social Responsibility |
Date Deposited: | 17 Oct 2016 13:38 |
Last Modified: | 24 Oct 2024 19:12 |
URI: | http://eprints.lse.ac.uk/id/eprint/68059 |
Actions (login required)
View Item |