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Cross-listing and corporate social responsibility

Author

Listed:
  • Boubakri, Narjess
  • El Ghoul, Sadok
  • Wang, He
  • Guedhami, Omrane
  • Kwok, Chuck C.Y.

Abstract

This paper investigates the dynamics of cross-listing and corporate social responsibility (CSR). Using a sample of 10,815 firm-year observations from 54 countries over the period 2002–2011, we find that cross-listed firms have better CSR performance than non–cross-listed domestic firms. This result is robust to endogeneity and different types of cross-listing. We also find that CSR increases (decreases) significantly after cross-listing in (delisting from) U.S. markets. The positive impact of cross-listing on CSR performance is stronger for firms from countries with weaker institutions, lower country-level sustainability, and higher liability of foreignness, and for firms operating in industries with high litigation risk. Finally, we find that cross-listed firms with better CSR performance exhibit higher valuations.

Suggested Citation

  • Boubakri, Narjess & El Ghoul, Sadok & Wang, He & Guedhami, Omrane & Kwok, Chuck C.Y., 2016. "Cross-listing and corporate social responsibility," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 123-138.
    • Handle: RePEc:eee:corfin:v:41:y:2016:i:c:p:123-138
    DOI: 10.1016/j.jcorpfin.2016.08.008
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