Estimating the Effect of Corporate Social Responsibility on Firm Value Using Geographic Identification
© 2017 Korean Securities Association We argue that firms located close to one another tend to have similar corporate social responsibility (CSR) policies, due to investor clienteles, local competition, as well as social interactions. Our results are consistent with this notion. In particular, firms...
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th-mahidol.424662019-03-14T15:03:31Z Estimating the Effect of Corporate Social Responsibility on Firm Value Using Geographic Identification Pandej Chintrakarn Pornsit Jiraporn Napatsorn Jiraporn Travis Davidson Mahidol University Pennsylvania State University State University of New York (SUNY) at Oswego Ohio University Economics, Econometrics and Finance © 2017 Korean Securities Association We argue that firms located close to one another tend to have similar corporate social responsibility (CSR) policies, due to investor clienteles, local competition, as well as social interactions. Our results are consistent with this notion. In particular, firms located in the same 3-digit zip code exhibit a similar degree of CSR. Exploiting the variation in CSR across zip codes, we estimate the effect of CSR on firm value. Part of the firm's CSR is induced by the surrounding firms in the same zip code and can be considered exogenous as it is determined outside the firm. Because zip code allocation is based on efficiency in mail delivery, and not on corporate policies or outcomes, it is likely exogenous. Our instrumental variable analysis reveals that more socially responsible firms enjoy significantly higher firm value. We confirm the results using phone number area codes, instead of zip codes, and reach the same conclusion. 2018-12-21T07:28:42Z 2019-03-14T08:03:31Z 2018-12-21T07:28:42Z 2019-03-14T08:03:31Z 2017-04-01 Article Asia-Pacific Journal of Financial Studies. Vol.46, No.2 (2017), 276-304 10.1111/ajfs.12170 20416156 20419945 2-s2.0-85018316825 https://repository.li.mahidol.ac.th/handle/123456789/42466 Mahidol University SCOPUS https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85018316825&origin=inward |
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Economics, Econometrics and Finance Pandej Chintrakarn Pornsit Jiraporn Napatsorn Jiraporn Travis Davidson Estimating the Effect of Corporate Social Responsibility on Firm Value Using Geographic Identification |
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© 2017 Korean Securities Association We argue that firms located close to one another tend to have similar corporate social responsibility (CSR) policies, due to investor clienteles, local competition, as well as social interactions. Our results are consistent with this notion. In particular, firms located in the same 3-digit zip code exhibit a similar degree of CSR. Exploiting the variation in CSR across zip codes, we estimate the effect of CSR on firm value. Part of the firm's CSR is induced by the surrounding firms in the same zip code and can be considered exogenous as it is determined outside the firm. Because zip code allocation is based on efficiency in mail delivery, and not on corporate policies or outcomes, it is likely exogenous. Our instrumental variable analysis reveals that more socially responsible firms enjoy significantly higher firm value. We confirm the results using phone number area codes, instead of zip codes, and reach the same conclusion. |
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Mahidol University |
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Mahidol University Pandej Chintrakarn Pornsit Jiraporn Napatsorn Jiraporn Travis Davidson |
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Article |
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Pandej Chintrakarn Pornsit Jiraporn Napatsorn Jiraporn Travis Davidson |
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Pandej Chintrakarn |
title |
Estimating the Effect of Corporate Social Responsibility on Firm Value Using Geographic Identification |
title_short |
Estimating the Effect of Corporate Social Responsibility on Firm Value Using Geographic Identification |
title_full |
Estimating the Effect of Corporate Social Responsibility on Firm Value Using Geographic Identification |
title_fullStr |
Estimating the Effect of Corporate Social Responsibility on Firm Value Using Geographic Identification |
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Estimating the Effect of Corporate Social Responsibility on Firm Value Using Geographic Identification |
title_sort |
estimating the effect of corporate social responsibility on firm value using geographic identification |
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2018 |
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https://repository.li.mahidol.ac.th/handle/123456789/42466 |
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1763496004451041280 |