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Does corporate social responsibility affect shareholder value? Evidence from the COVID‐19 crisis

Author

Listed:
  • Somya Arora
  • Jagan Kumar Sur
  • Yogesh Chauhan
Abstract
The COVID‐19 outbreak and the subsequent lockdown were an unanticipated shock to the global stock market. Managers also had minimal time to counterbalance its effect through corporate policies. Therefore, this health crisis offers a unique opportunity to examine the effect of corporate social responsibility (CSR) on shareholder value. We observe that firms engaged in more CSR activities outperform other firms. This suggests that CSR plays a positive role in determining shareholder value, particularly for an emerging market where minority shareholder rights are weak. Collaborating with our main finding, we further find that governance metrics play a significant role.

Suggested Citation

  • Somya Arora & Jagan Kumar Sur & Yogesh Chauhan, 2022. "Does corporate social responsibility affect shareholder value? Evidence from the COVID‐19 crisis," International Review of Finance, International Review of Finance Ltd., vol. 22(2), pages 325-334, June.
    • Handle: RePEc:bla:irvfin:v:22:y:2022:i:2:p:325-334
    DOI: 10.1111/irfi.12353
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    References listed on IDEAS

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