CSR and Market Valuation: International Evidence
affiliation not provided to SSRN
Université d'Auvergne - Clermont 1 - Clermont Université
March 1, 2011
International Conference of the French Finance Association (AFFI), May 11-13, 2011
Do socially responsible firms benefit from ethical goodwill? On the one hand, taking externalities into account can be a competitive disadvantage. On the other hand, financial benefits may result from ethical behavior. Thanks to a worldwide dataset of ESG ratings (MSCI ESG ratings), we examine the relationship between a firm’s CSR rating and its value. After controlling for industry, region, year and R&D, we observe, contrary to mainstream empirical studies, strong evidence of a negative impact of responsible behavior on corporate market value.
Number of Pages in PDF File: 22
Keywords: Corporate Social Responsibility, ESG Rating, Firm valuation, Tobin’s q
JEL Classification: G11, G12
Date posted: May 9, 2011 ; Last revised: November 25, 2013
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