Firm Litigation Risk and the Insurance Value of Corporate Social Performance

• Main Authors: KOH, Ping-Sheng, QIAN, Cuili, WANG, Heli
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: Corporate social performance; Insurance value; Risk management; Firm valuation models; Legitimacy; Corporate social responsibility; Business Law, Public Responsibility, and Ethics; Corporate Finance; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3247; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4246/viewcontent/auto_convert.pdf
• Institution: Singapore Management University

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 gen...