The DOI matches its Crossref record; 9 of the 9 references it cites were found in a registry or an index.
Firm litigation risk and the insurance value of corporate social performance
Open accessAbstract
This paper advances the risk management perspective that superior social performance enhances firm value by serving as an ex ante valuable insurance mechanism. We posit that good social performance is more valuable as an insurance mechanism for firms with higher litigation risks. Moreover, value generation of corporate social performance ( CSP ) depends on whether a firm has gained pragmatic legitimacy (i.e., a firm's financial health) and moral legitimacy (i.e., whether or not a firm operates in a socially contested industry) among its stakeholders. We find that the value of CSP as insurance against litigation risk is practically significant, adding 2 to 4 percent to firm value. But CSP is less likely to create value if the firm is in financial distress or is operating in socially contested industries. Copyright © 2013 John Wiley & Sons, Ltd.
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Citations
Cites
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The Social Responsibility of Business Is to Increase Its Profits
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“…over whether or not firms should divert their scarce cash, time, energy, and other resources to improving their CSP and whether excelling in social performance hurts or benefits a corporation financially (e.g., Friedman, 1970; Godfrey, 2005; Orlitzky et al., 2003; Waddock and Graves, 1997).”
BackgroundA Three-Dimensional Conceptual Model of Corporate Performance
Carroll, A. B. (1979) · The Academy of Management Review · doi:10.2307/257850 · Cited by 10,480
Corporate Social and Financial Performance: A Meta-Analysis
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003) · Organization Studies · doi:10.1177/0170840603024003910 · Cited by 7,641
Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility
Sen, S., & Bhattacharya, C. B. (2001) · Journal of Marketing Research · doi:10.1509/jmkr.38.2.225.18838 · Cited by 4,659
Does corporate social responsibility affect the cost of capital?
El Ghoul, S., Guedhami, O., Kwok, C. C. Y., & Mishra, D. R. (2011) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2011.02.007 · Cited by 3,465
Corporate Social Responsibility, Customer Satisfaction, and Market Value
Luo, X., & Bhattacharya, C. B. (2006) · Journal of Marketing · doi:10.1509/jmkg.70.4.001 · Cited by 3,439
Corporate Social Performance As a Competitive Advantage in Attracting a Quality Workforce
Greening, D. W., & Turban, D. B. (2000) · Business & Society · doi:10.1177/000765030003900302 · Cited by 2,077
Environmental disclosures, regulatory costs, and changes in firm value
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Cited by
ESG: Research Progress and Future Prospects
Li, T.-T., Wang, K., Sueyoshi, T., & Wang, D. D. (2021) · Sustainability · doi:10.3390/su132111663 · Cited by 779
How Media Coverage of Corporate Social Irresponsibility Increases Financial Risk
Kölbel, J. F., Busch, T., & Jancso, L. M. (2017) · Strategic Management Journal · doi:10.1002/smj.2647 · Cited by 682
Corporate environmental responsibility and the cost of capital: International evidence
El Ghoul, S., Guedhami, O., Kim, H., & Park, K. (2018) · Journal of Business Ethics · doi:10.1007/s10551-015-3005-6 · Cited by 544
Corporate social responsibility, investor protection, and cost of equity: A cross-country comparison
Breuer, W., Müller, T., Rosenbach, D., & Salzmann, A. (2018) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2018.07.018 · Cited by 350
Cross-listing and corporate social responsibility
Boubakri, N., El Ghoul, S., Wang, H., Guedhami, O., & Kwok, C. C. Y. (2016) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2016.08.008 · Cited by 264
Self-citationMicrofoundations of Corporate Social Responsibility and Irresponsibility
Shea, C. T., & Hawn, O. V. (2019) · Academy of Management Journal · doi:10.5465/amj.2014.0795 · Cited by 209
The effect of social screening on bond mutual fund performance
Henke, H.-M. (2016) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2016.01.010 · Cited by 147
Metadata
- Authors
- Koh, P., Qian, C., & Wang, H.
- Venue
- Strategic Management Journal
- Publisher
- Wiley
- Published
- 2013-08-02
- Volume
- 35
- Issue
- 10
- Pages
- 1464-1482
- ISSN
- 0143-2095 (ISSN-L)
- 1097-0266
- OpenAlex
- W2095849253
- Cited by
- 480
- References
- 9
- FWCI
- 40.79
- Type
- journal article
- Language
- en
- Open access
- green
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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