Stakeholder Preference and Strategic Corporate Social Responsibility

Banerjee, Shantanu and Homroy, Swarnodeep and Slechten, Aurelie (2022) Stakeholder Preference and Strategic Corporate Social Responsibility. Journal of Corporate Finance. ISSN 0929-1199 (In Press)

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This paper investigates the role of stakeholder preference on corporate social responsibility (CSR) strategies. Using a staggered difference-in-difference approach, we show that Indian firms increase CSR expenses when trade restrictions (Antidumping) are initiated against competing Chinese exports from countries with a high stakeholder preference for CSR. However, when these shocks emanate from countries with a lower stakeholder preference, CSR expenses re-main unchanged. Capital expenditure and R&D of Indian firms increase following AD shocks, irrespective of their country of origin. Finally, CSR increases firm value only when the demand shocks originate from countries with a higher CSR preference. Collectively, we provide evidence for consumer-driven CSR strategies.

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Journal Article
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Journal of Corporate Finance
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Deposited On:
29 Sep 2022 13:30
In Press
Last Modified:
07 Dec 2022 02:15