Lins, K V, Servaes, H and Tamayo, A (2017) Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis. Journal of Finance, 72 (4). pp. 1785-1824. ISSN 0022-1082
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.
More Details
Item Type: | Article |
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Subject Areas: | Finance |
Additional Information: |
This is the peer reviewed version of the following article: Lins KV, Servaes H & Tamayo A (2017) Social capital, trust, and firm performance: the value of corporate social responsibility during the financial crisis, Journal of Finance, Vol. 72 (4), pp 1785-1824 which has been published in final form at https://doi.org/10.1111/jofi.12505. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. © 2017 The American Finance Association |
Date Deposited: | 01 Nov 2016 19:05 |
Date of first compliant deposit: | 19 Oct 2016 |
Subjects: |
Crises Corporate responsibility Rate of return |
Last Modified: | 21 Nov 2024 02:49 |
URI: | https://lbsresearch.london.edu/id/eprint/579 |