IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v12y2023i4p217-228.html
   My bibliography  Save this article

Does corporate social responsibility provide protection against systemic risks? Evidence from Taiwan during the US-China trade war

Author

Listed:
  • Po-Jung Chen

    (I-Shou University)

  • Chih-Yu Yang

    (I-Shou University)

Abstract

This paper examines the protection against systemic risks of the financial and stock performance of firms in receipt of ‘corporate social responsibility’ (CSR) awards. The data we obtained from the Taiwan Economic Journal (TEJ) in 2016-2018, comprised of CSR-award-recipient firms (CSR firms) voted for by the Common Wealth and Global Views magazines, for a sample period running from the third quarter of 2017 to the third quarter of 2018. Our empirical results reveal that in terms of their financial performance, as compared to non-CSR-award-recipient (non-CSR) firms, CSR firms failed to demonstrate any better protection against systemic risks (such as the US-China trade war). However, the stock performance of CSR firms clearly provided better protection than that of non-CSR firms; the reason for this observation is assumed to be the higher operational costs faced by CSR firms seeking to continue to pursue their CSR goals when encountering systemic risks. Nevertheless, participation in CSR is found to have an insurance-like effect on firm value, which clearly helps to increase the confidence of investors and reduce stock volatility Key Words:Corporate Social Responsibility, Stock Performance, Financial Performance

Suggested Citation

  • Po-Jung Chen & Chih-Yu Yang, 2023. "Does corporate social responsibility provide protection against systemic risks? Evidence from Taiwan during the US-China trade war," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 12(4), pages 217-228, June.
    • Handle: RePEc:rbs:ijbrss:v:12:y:2023:i:4:p:217-228
    DOI: 10.20525/ijrbs.v12i4.2552
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/2552/1846
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v12i4.2552
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v12i4.2552?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
    ---><---

    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:rbs:ijbrss:v:12:y:2023:i:4:p:217-228. 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: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    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.