Are red or blue companies more likely to go green? Politics and corporate social responsibility |
| |
Institution: | 1. Columbia University, Imperial College London, CEPR, and NBER, United States;2. Imperial College London and CEPR, United Kingdom;1. University of Alberta, Edmonton, AB T6C 4G9, Canada;2. Moore School of Business, University of South Carolina, USA;3. School of Business, Renmin University of China, China |
| |
Abstract: | Using the firm-level corporate social responsibility (CSR) ratings of Kinder, Lydenberg, Domini, we find that firms score higher on CSR when they have Democratic rather than Republican founders, CEOs, and directors, and when they are headquartered in Democratic rather than Republican-leaning states. Democratic-leaning firms spend $20 million more on CSR than Republican-leaning firms ($80 million more within the sample of S&P 500 firms), or roughly 10% of net income. We find no evidence that firms recover these expenditures through increased sales. Indeed, increases in firm CSR ratings are associated with negative future stock returns and declines in firm ROA, suggesting that any benefits to stakeholders from social responsibility come at the direct expense of firm value. |
| |
Keywords: | Corporate social responsibility Corporate culture Politics |
本文献已被 ScienceDirect 等数据库收录! |
|