IDEAS home Printed from https://ideas.repec.org/a/bla/jbfnac/v46y2019i3-4p494-537.html
   My bibliography  Save this article

The influence of corporate social responsibility on investment efficiency and innovation

Author

Listed:
  • Kirsten A. Cook
  • Andrea M. Romi
  • Daniela Sánchez
  • Juan Manuel Sánchez

Abstract

We examine two important channels through which corporate social responsibility (CSR) affects firm value: investment efficiency and innovation. We find that firms with higher CSR performance invest more efficiently: these firms are less prone to invest in negative net present value (NPV) projects (overinvestment) and less prone to forego positive NPV projects (underinvestment). We also find that firms with higher CSR performance generate more patents and patent citations. Mediation analysis indicates that firms with higher CSR performance are more profitable and valuable, consequences partially attributable to efficient investments and innovation. These results, robust to alternate model specifications, lend support to enlightened stakeholder theory.

Suggested Citation

  • Kirsten A. Cook & Andrea M. Romi & Daniela Sánchez & Juan Manuel Sánchez, 2019. "The influence of corporate social responsibility on investment efficiency and innovation," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 46(3-4), pages 494-537, March.
    • Handle: RePEc:bla:jbfnac:v:46:y:2019:i:3-4:p:494-537
    DOI: 10.1111/jbfa.12360
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jbfa.12360
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jbfa.12360?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jbfnac:v:46:y:2019:i:3-4:p:494-537. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.