Online Appendix of ''Does it Pay Off to Compete on Social Purpose?"
26 Pages Posted:
Date Written: February 4, 2020
This appendix contains supplementary material to the analyses reported in the paper. Appendix Section I presents the variation in the principal KLD-based measures of corporate social responsibility. Appendix Section II defines the key variables. Appendix Section III reports a summary of the most commonly-used KLD-based measures of corporate social responsibility engagements. Appendix Section IV reports a detailed description of the mathematical derivation of the Relative Social Responsibility Score (RSR Score hereinafter). Appendix Section V reports an augmented version of Table III in which firm-year observations not included in the TRI dataset are assumed to have zero toxic-emissions. Appendix Section VI reports a replication of Table III, Panel C, in the paper, in which we orthogonalize commonly-used CSR scores against the RSR score, and we regress firms’ toxic emissions on the former and the resulting residuals. Appendix Section VII replicates our Tobin’s Q results in Table VI by using the Total Q measure developed in Peters and Taylor (2017). Appendix Section VIII reports a replication of Table VI in which we orthogonalize commonly-used CSR scores against the RSR score, and we regress Tobin’s Q on the former and the relevant residuals. Finally, Section IX includes an orthogonalization test for the materiality-based RSR score and other commonly-used CSR scores in the framework of our baseline Tobin’s Q regression.
Keywords: corporate social responsibility; ESG (environmental, social, governance) performance; KLD data; ratings; performance measurement; competitive advantage; reputational capital; sustainability
JEL Classification: M14; G30; G32
Suggested Citation: Suggested Citation