Is corporate social responsibility an agency problem?

• Main Authors: LIANG, Hao, RENNEBOOG, Luc
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Corporate Social Responsibility; CEO turnover; Corporate Governance; Business Law, Public Responsibility, and Ethics; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6532; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7531/viewcontent/_9781786432629___Research_Handbook_of_Finance_and_Sustainability__Is_corporate_social_responsibility_an_agency_problem_.pdf
• Institution: Singapore Management University

This chapter examines whether CSR investments occur mostly in firms with severe agency problems, which suggests that CSR is an agency issue. We demonstrate that this is not the case: CSR investments and performance are higher when dividends are high, leverage is high, cash flows and cash holdings ar...