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Strategic use of CSR as a signal for good management

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  • LUIS GOMEZ - MEJIA

    () (Instituto de Empresa)

Abstract

More than thirty years of research exploring the link between corporate social responsibility (CSR) and corporate financial performance (CFP) could not provide a satisfying resolution to the tension exists between economic and social objectives. In this paper, we have contributed to the existing CSR literature both theoretically and empirically. On the theoretical side, we challenged the assumption that managers consider all stakeholders equally important and we contend that managers prioritize stakeholders instead. We also extend agency theory by suggesting that CSR may actually reduce monitoring costs since it has informative value about the quality of management.

Suggested Citation

  • Luis Gomez - Mejia, 2008. "Strategic use of CSR as a signal for good management," Working Papers Economia wp08-25, Instituto de Empresa, Area of Economic Environment.
  • Handle: RePEc:emp:wpaper:wp08-25
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    File URL: http://latienda.ie.edu/working_papers_economia/WP08-25.pdf
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    References listed on IDEAS

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    Cited by:

    1. Mohamed A. Ayadi & Hatem Ben-Ameur & Lawrence Kryzanowski, 2016. "Typical and Tail Performance of Canadian Equity SRI Mutual Funds," Journal of Financial Services Research, Springer;Western Finance Association, vol. 50(1), pages 57-94, August.
    2. Choi, Jong-Seo & Kwak, Young-Min & Choe, Chongwoo, 2010. "Corporate Social Responsibility and Corporate Financial Performance: Evidence from Korea," MPRA Paper 22159, University Library of Munich, Germany.
    3. Vintilă Georgeta & Nenu Elena Alexandra & Gherghina Ştefan Cristian, 2014. "Empirical Research Towards the Factors Influencing Corporate Financial Performance on the Bucharest Stock Exchange," Scientific Annals of Economics and Business, De Gruyter Open, vol. 61(2), pages 219-233, December.

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