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The impact of climate policy uncertainty on firm value: Does corporate social responsibility engagement matter?

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  • Azimli, Asil

Abstract

This paper examines if corporate social responsibility (CSR) engagement can mitigate the negative impact of climate policy uncertainty (CPU) on firm valuation. Using a sample of firms in the Standards & Poor 1500 index over 2002–2021 we show that a higher-CSR-engagement offsets the negative impact of CPU on firms’ valuation. Further analyses imply that this insurance-like effect holds among the highest-CSR firms and stronger during the crisis period. Finally, high-CSR firms realize higher growth in operating profitability (OP), which offers a possible source for documented insurance-effect.

Suggested Citation

  • Azimli, Asil, 2023. "The impact of climate policy uncertainty on firm value: Does corporate social responsibility engagement matter?," Finance Research Letters, Elsevier, vol. 51(C).
    • Handle: RePEc:eee:finlet:v:51:y:2023:i:c:s1544612322006328
    DOI: 10.1016/j.frl.2022.103456
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    References listed on IDEAS

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