The relationship between corporate social responsibility and shareholder value: an empirical test of the risk management hypothesis
Article first published online: 30 DEC 2008
Copyright © 2008 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 30, Issue 4, pages 425–445, April 2009
How to Cite
Godfrey, P. C., Merrill, C. B. and Hansen, J. M. (2009), The relationship between corporate social responsibility and shareholder value: an empirical test of the risk management hypothesis. Strat. Mgmt. J., 30: 425–445. doi: 10.1002/smj.750
- Issue published online: 29 JAN 2009
- Article first published online: 30 DEC 2008
- Manuscript Revised: 2 DEC 2008
- Manuscript Received: 30 OCT 2007
- 1931. Corporate powers as powers in trust. Harvard Law Review 44: 1049–1074. .
- 1997. Environmental information and market reactions to environmental legislation. Journal of Accounting, Auditing, and Finance 12(2): 149–178. , .
- 1994. Environmental disclosures, regulatory costs, and changes in firm value. Journal of Accounting and Economics 18: 357–377. , .
- 1995. Fundamentals of Corporate Finance. McGraw-Hill: New York. , , .
- 1997. The company and the product: corporate associations and consumer product responses. Journal of Marketing 61(1): 68–84. , .
- 1997. The Econometrics of Financial Markets. Princeton University Press: Princeton, NJ. , , .
- 1999. Bootstrap Methods: A Practitioner's Guide. New York: John Wiley and Sons, New York. .
- 1988. Statistical Power for the Behavioral Sciences (2nd edn). Lawrence Erlbaum: Hillsdale, NJ. .
- 1992. Nonparametric event study tests. Review of Quantitative Finance and Accounting 2(4): 343–358. .
- 1932. For whom are corporate managers trustees. Harvard Law Review 45(7): 1145–1163. .
- 1999. Ties That Bind. Harvard Business School Press: Boston, MA. , .
- 2003. The myth of social investing: a critique of its practice and consequences for corporate social performance research. Organization Environment 16: 352–368. .
- 1972. The Theory of Finance. Dryden Press: Hinsdale, IL. , .
- 2005. Corporate social responsibility: doing well by doing good? Working paper, Columbia University Business School, New York. Available at SSRN: http://ssrn.com/abstract=813286. , , .
- 1996. Reputation. Harvard Business School Press: Boston, MA. .
- 2000. Opportunity platforms and safety nets: corporate citizenship and reputational risk. Business and Society Review 105(1): 85–106. , , .
- 1991. Differences in social-cost disclosures: a market test of investor reactions. Accounting, Auditing, and Accountability Journal 4(1): 68–83. , .
- 2008. Managing for Stakeholders: Survival, Reputation, and Success. Yale University Press: New Haven, CT. , , .
- 1991. Bringing society back in: symbols, practices, and institutional contradictions. In The New Institutionalism in Organizational Analysis, PowellWW, DiMaggioPJ (eds). The University of Chicago Press: Chicago, IL; 232–266. , .
- 1953. Essays in Positive Economics. University of Chicago Press: Chicago, IL. .
- 1970. The social responsibility of business is to increase profit. New York Times Magazine(September 13): 32–33, 122, 126. .
- 2006. Corporate citizenship: creating intangible assets across institutional environments. Academy of Management Review 31(2): 329–346. , .
- 2005. Blink: The Power of Thinking Without Thinking. Back Bay Books: New York. .
- 2005. The relationship between corporate philanthropy and shareholder wealth: a risk management perspective. Academy of Management Review 30(4): 777–798. .
- 2008. Toward a general theory of CSRs: the roles of beneficence, profitability, insurance, and industry heterogeneity. Business & Society, April 24, 2008 DOI: 10.1177/0007650308315494. , , .
- 1995. The problem of unobservables in strategic management research. Strategic Management Journal 16: 519–534. , .
- 1997. Self-presentation. In The Goffman Reader, LemertC, BranamanA (eds). Blackwell Publishers Ltd.: Oxford, UK; 21–25. .
- 1997. The corporate social performance and corporate financial performance debate: twenty-five years of incomparable research. Business and Society 36(1): 5–31. , .
- 1983. Regression with Dummy Variables. Sage: Thousand Oaks, CA. .
- 2001. Shareholder value, stakeholder management, and social issues: what's the bottom line? Strategic Management Journal 22: 125–140. , .
- 1991. Capital market evaluation of m-form implementation and diversification strategy. Strategic Management Journal 12: 271–279. , , .
- 2003. Analysis of Panel Data (2nd edn). Cambridge University Press: Cambridge, UK. .
- 1964. Ingratiation: A Social Psychological Analyis. Appleton-Century-Crofts: New York. .
- 1980. Altruism and economic behavior II: Private charity and public policy. American Journal of Economics and Sociology 39(4): 337–353. .
- 1976. Organizational size and the structuralist perspective: a review, critique, and proposal. Administrative Science Quarterly 21(4): 571–597. .
- 1994. The paradox of corporate giving: tax expenditures, the nature of the corporation, and the social construction of charity. DePaul Law Review 44(1): 1–97. .
- 2005. The value from acquiring and divesting a joint venture: a real options approach. Strategic Management Journal 26(4): 321–331. .
- 2000. Criminal Law (3rd edn). West Group: St. Paul, MN. .
- 2001. What's in a name.com? The effects of ‘.com’ name changes on stock prices and trading activity. Strategic Management Journal 22(8): 793–804. .
- 2006. Is doing good good for you: yes, charitable contributions enhance revenue growth. Working paper New York University Stern School of Business, New York. http://archive.nyu.edu/fda/bitstream/2451/27464/2/SSRN-id920502.pdf. , , .
- 2007. Corporate social responsibility and firm performance: investor preferences and corporate strategies. Academy of Management Review 32(3): 817–835. , , .
- 1993. An empirical investigation of the effect of corporate charter antitakeover amendments on stockholder wealth. Strategic Management Journal 14(1): 17–31. , .
- 1985. Partially anticipated events: a model of stock price reactions with an application to corporate acquisitions. Journal of Financial Economics 14(2): 237–251. .
- 2001. People and Profits: The Search for a Link Between a Company's Social and Financial Performance. Lawrence Erlbaum: Mahweh, NJ. , .
- 1952. Portfolio selection. Journal of Finance 7: 77–91. .
- 2006. Measurement of corporate social action: discovering taxonomy in the Kinder Lydenburg Domini ratings data. Business and Society 45(1): 20–46. , .
- 1997. Event studies in management research: theoretical and empirical issues. Academy of Management Journal 40(3): 626–657. , .
- 2000. Corporate social responsibility and financial performance: correlation or misspecification. Strategic Management Journal 21(5): 603–609. , .
- 1967. On Theoretical Sociology. Free Press: New York. .
- 1997. Toward a theory of stakeholder identification and salience: defining the principle of who and what really counts. Academy of Management Review 22(4): 853–886. , , .
- 1995. Corporate Strategy and the Politics of Goodwill: A Political Analysis of Corporate Philanthropy in America (American University Studies Series X, Political Science). Peter Lang: New York. .
- 2001. Corporate social performance and firm risk: a meta-analytic review. Business and Society 40(4): 369–397. , .
- 2003. Corporate social and financial performance: a meta-analysis. Organization Studies 24(3): 403–441. , , .
- 1976. Corporate forecasts of earnings per share and stock price behavior: empirical tests. Journal of Accounting Research 14(2): 246–276. .
- 1989. Event studies: a review of issues and methodology. Quarterly Journal of Business and Economics 28(3): 36–66. .
- PopperKR (ed). 1962. Conjectures and Refutations: The Growth of Scientific Knowledge. Basic Books: New York.
- 2001. From hybrids to hierarchies: shareholder wealth effects of joint venture partner buyouts. Strategic Management Journal 22(1): 27–44. .
- 1988. Mathematical Statistics and Data Analysis. Wadsworth & Brooks: Pacific Grove, CA. .
- 1999. Managing capital market reactions to corporate social responsibility. International Journal of Management Reviews 1(1): 17–44. , , .
- 2006. Celebrity firms: the social construction of market popularity. Academy of Management Review 31(1): 50–71. , , .
- 1999. The relationship between social and financial performance: repainting a portrait. Business and Society 38(1): 109–125. , , .
- 1996. The construct validity of the Kinder, Lydenburg, and Domini social performance ratings data. Journal of Business Ethics 15(3): 287–296. .
- 2005. Exploring the financial value of a reputation for corporate social responsibility during a crisis. Corporate Reputation Review 7(4): 327–345. , .
- 1964. Capital asset prices: a theory of market equilibrium under conditions of risk. Journal of Finance 19(3): 425–442. .
- 1983. Gift giving in anthropological perspective. Journal of Consumer Research 10(2): 157–168. .
- 2000. Inefficient Markets: An Introduction to Behavioral Finance (Clarendon Lectures in Economics). Oxford University Press: Oxford, UK. .
- 1995. Global corporate philanthropy: a strategic framework. International Marketing Review 12(4): 20–37. .
- 1985. The determinants of firms' hedging policies. Journal of Financial and Quantitative Analysis 20(4): 391–405. , .
- StataCorp. 2005. Stata Statistical Software, Release 9. StataCorp LP: College Station, TX.
- 2002. Risk management and derivatives. Southwestern College Publications: New York. .
- 1999. Evaluating corporate performance: a comparison of the Fortune Reputation survey and the Socrates social rating database. Journal of Managerial Issues 11(2): 137–154. , .
- 1999. Trust, confidence and voluntary organisations(sic): between values and insitutions. Sociology 33(2): 257–274. , .
- 1997. Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal 40(3): 658–672. , .
- 1997. Social structure and competition in interfirm networks: the paradox of embeddedness. Administrative Science Quarterly 42: 35–67. .
- 2003. Consumers' evaluation of socially responsible activities in retailing. Working paper, Maastricht University, Maastricht, The Netherlands. , , .
- 2004. Intangible resources, Tobin's q, and sustainability of performance differences. Journal of Economic Behavior & Organization 54: 205–230. .
- 1997. The corporate social performance-financial performance link. Strategic Management Journal 18(4): 303–319. , .
- 2000. Corporate philanthropy, criminal activity, and firm reputation: is there a link? Journal of Business Ethics 26(4): 341–350. , .
- 1987. Knowledge and competence as strategic assets. In The Competitive Challenge, TeeceDJ (ed). Ballinger Publishing Company: Cambridge, MA; 159–184. .