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Corporate Social Responsibility, Product Strategy, and Firm Value
Author(s) -
Cho Eunho,
Tsang Albert
Publication year - 2020
Publication title -
asia‐pacific journal of financial studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.375
H-Index - 15
eISSN - 2041-6156
pISSN - 2041-9945
DOI - 10.1111/ajfs.12291
Subject(s) - corporate social responsibility , business , enterprise value , product (mathematics) , value (mathematics) , sample (material) , industrial organization , strategic management , new product development , firm offer , investment (military) , marketing , business administration , accounting , public relations , chemistry , geometry , mathematics , chromatography , machine learning , politics , political science , computer science , law
This study examines the role of a firm’s product strategy on the relationship between corporate social responsibility (CSR) and firm value. Using a sample of 1287 firm‐year observations of Korean listed manufacturing firms from 2005 to 2016, we find that a firm’s product differentiation strategies strengthen the association between CSR and firm value, whereas cost‐leadership strategies weaken such a relationship. Our findings demonstrate the importance of attaining a strategic fit between CSR activities and product strategies, and highlight the importance of considering a firm’s product strategy when evaluating a firm’s CSR investment.