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CSR permanency, family ownership, and firm value: Evidence from emerging economies
Author(s) -
Noor Sana,
Saeed Abubakr,
Baloch Muhammad Saad,
Awais Muhammad
Publication year - 2020
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.1953
Subject(s) - corporate social responsibility , business , bric , enterprise value , emerging markets , value (mathematics) , china , sample (material) , demographic economics , accounting , economics , finance , public relations , chemistry , chromatography , machine learning , political science , computer science , law
Prior research suggests that undertaking corporate social responsibility (CSR) activities affect firm value. We extend this line of research by considering CSR activities over a longer period (a consistent CSR behavior) and examine the impact of CSR permanency on firm value. Using a cross‐country sample of 600 top‐listed firms from four leading emerging economies, Brazil, Russia, India, and China (BRIC) over the period 2010–2018, we find that CSR permanency positively impacts firm value after controlling for various firm and country characteristics. This effect is observed more pronounced for family‐owned firms. Additional analysis reveals that permanent CSR activities in both social and environmental dimensions positively influence firm value, however, CSR permanent activities in the social dimension exert a larger impact on firm value. Our results make important contributions to theory and practice.