Environmental corporate social responsibility and financial performance: Disentangling direct and indirect effects

Ecological Economics

Volumn 78, Issue , 2012, Pages 100-111

  Lioui, Abraham ^a   Sharma, Zenu ^b  

^a EDHEC BUSINESS SCHOOL   (France)

^b LONG ISLAND UNIVERSITY   (United States)

Author keywords

Corporate social responsibility; R D; Tobin's Q

Indexed keywords

CORPORATE STRATEGY; COST-BENEFIT ANALYSIS; ECONOMIC IMPACT; ENVIRONMENTAL ECONOMICS; THEORETICAL STUDY;

EID: 84861459743     PISSN: 09218009     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ecolecon.2012.04.004     Document Type: Article

References (35)

1. Bae K.H., Kang J.K., Wang J. Employee treatment and firm leverage: a test of the stakeholder theory of capital structure. Journal of Financial Economics 2011, 100:130-153.
2. Benabou R., Tirole J. Individual and corporate social responsibility. Economica 2010, 77:1-19.
3. Bird R., Hall A., Momente F., Reggiani F. What corporate social responsibility activities are valued by the market?. Journal of Business Ethics 2007, 76:189-206.
4. Chatterji A., Levine D., Toffel M. How well do social ratings actually measure corporate social responsibility ?. Journal of Economics and Management Strategy 2009, 18(1):125-169.
5. Chauvin K., Hirschey M. Advertising, R&D expenditures, and the market value of the firm. Financial Management 1993, 22:128-140.
6. Drusch L., Lioui A. French corporate social responsibility: which dimension pays more?. Bankers, Markets and Investors 2010, 109:47-55. November-December.
7. Fisher-Vanden K., Thorburn K.S. Voluntary Corporate environmental initiatives and shareholder wealth. Journal of Environmental Economics and Management 2011, 62:430-445.
8. Friedman, M., 1970, The Social Responsibility of Business is to Increase its Profits, The New York Times Magazine, September 13, 1970.
9. Golec J., Hedge S., Vernon J. Pharmaceutical R&D spending and threats of price regulation. Journal of Financial and Quantitative Analysis 2010, 45(1):239-264.
10. Hall B. The relationship between firm size and firm growth in the US manufacturing sector. International Journal of Industrial Organization 1987, 35(4):583-604.
11. Heyes A., Kapur S. Regulatory attitudes and environmental innovation in a model combining internal and external R&D. Journal of Environmental Economics and Management 2011, 61:327-340.
12. Horvathova E. Does environmental performance affect financial performance? A meta-analysis. Ecological Economics 2010, 70(1):52-59.
13. Hull C., Rothenberg S. Firm Performance: the interactions of corporate social performance with innovation and industry differentiation. Strategic Management Journal 2008, 29:781-789.
14. Jaffe A., Palmer K. Environmental regulation and innovation: a panel data study. The Review of Economics and Statistics 1997, 79:610-619.
15. Jaffe A., Peterson S., Portney P., Stavins R. Environmental regulation and the competitiveness of U.S. manufacturing: what does the evidence tell us?. Journal of Economic Literature 1995, 33:132-163.
16. Jo H., Hartojo M. Corporate governance and firm value: the impact of corporate social responsibility. Journal of Business Ethics 2011, 103:351-383.
17. Johnstone N., Labonne J. Why do manufacturing facilities introduce environmental management systems? Improving and/or signaling performance. Ecological Economics 2009, 68:719-730.
18. King A., Lenox M. Does it really pay to be green? An empirical study of firm environmental and financial performance. Journal of Industrial Ecology 2001, 5(1):105-106.
19. Kitzmueller M., Shimshak J. Economic perspectives on corporate social responsibility. Journal of Economic Literature 2012, 50(1):51-84.
20. Konar S., Cohen M. Does the market value environmental performance?. The Review of Economics and Statistics 2001, 83(2):281-289.
21. Margolis J., Elfenbein H., Walsh J. Does it pay to be good ? A meta analysis and redirection of research on the relationship between corporate social and financial performance, Working Paper 2007.
22. Marsat S., Williams B. CSR and market valuation: International evidence, Working Paper 2011.
23. McWilliams A., Siegel D. Corporate social responsibility and financial performance: correlation or misspecification?. Strategic Management Journal 2000, 21:603-609.
24. Myers S.C., Majluf N.S. Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics 1984, 13:187-221.
25. Padgett R., Galan J. The effect of R&D intensity on corporate social responsibility. Journal of Business Ethics 2010, 93:407-418.
26. Pizer W., Kopp R. Calculating the costs of environmental regulation. Handbook of Environmental Economics 2005, Volume III:1307-1351. Elsevier. K.G. Maler, J.R. Vincent (Eds.).
27. Porter M., van der Linde C. Green and competitive: ending the stalemate. Harvard Business Review 1995, 73(5):121-134.
28. Porter M., van der Linde C. Toward a new conception of the environment-competitiveness relationship. The Journal of Economic Perspectives 1995, 9(4):97-118.
29. Rassier D.G., Earnhart D. Short-run and long-run implications of environmental regulation on financial performance. Contemporary Economic Policy 2011, 29(3):357-373.
30. Scholtens B. A note on the interaction between corporate social responsibility and financial performance. Ecological Economics 2008, 68:46-55.
31. Sharfman M. The construct validity of the Kinder, Lydenberg & Domini social performance ratings data. Journal of Business Ethics 1996, 15:287-296.
32. Titman S., Tompaidis S., Tsyplakov S. Market imperfections, investment optionality and default spreads. Journal of Finance 2004, 44:345-373.
33. Verwijmeren P., Derwall J. Employee well being, firm leverage and bankruptcy risk. Journal of Banking and Finance 2010, 34:956-964.
34. Waddock A., Graves S. The corporate social performance-financial performance link. Strategic Management Journal 1997, 18:303-319.
35. Wagner M. The role of corporate sustainability performance for economic performance: a firm level analysis of moderation effects. Ecological Economics 2010, 69:1553-1560.