The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness
Management Science, Forthcoming
34 Pages Posted: 24 Jul 2012
Date Written: July 1, 2012
This paper shows that corporate social responsibility (CSR) and firm value are positively related for firms with high customer awareness, as proxied by advertising expenditures. For firms with low customer awareness, the relation is either negative or insignificant. In addition, we find that the effect of awareness on the value-CSR relation is reversed for firms with a poor prior reputation as corporate citizens. This evidence is consistent with the view that CSR activities can add value to the firm but only under certain conditions.
Keywords: Corporate social responsibiliy, firm value, customer awareness, reputation
JEL Classification: M14, L2, G32
Suggested Citation: Suggested Citation