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The impact of the dimensions of social performance on firm risk

  • Bouslah, Kais
  • Kryzanowski, Lawrence
  • M’Zali, Bouchra
Registered author(s):

    This paper examines the impact of the individual dimensions of social performance (SP) on firm risk (total and idiosyncratic) using 16,599 firm-year observations over the period 1991–2007. We find that firm risk for S&P500 members is positively affected by Employee, Diversity, and Corporate Governance concerns. On the other hand, Community (Diversity) strengths negatively (positively) affect their risk. As to non-S&P500 members, firm risk is positively affected by Employee concerns and Diversity strengths. However, firm risk of non-S&P500 members is negatively affected by Environment strengths. The direction of causation between firm risk and SP depends on the dimension examined.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0378426612003718
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    Article provided by Elsevier in its journal Journal of Banking & Finance.

    Volume (Year): 37 (2013)
    Issue (Month): 4 ()
    Pages: 1258-1273

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    Handle: RePEc:eee:jbfina:v:37:y:2013:i:4:p:1258-1273
    Contact details of provider: Web page: http://www.elsevier.com/locate/jbf

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