Trust and the Value of CSR during the Global Financial Crisis

15 Pages Posted: 4 Jun 2020

See all articles by Henk Berkman

Henk Berkman

University of Auckland - Business School

Michelle Li

University of Auckland

Helen Lu

University of Auckland - Department of Accounting and Finance

Date Written: April 20, 2020

Abstract

Lins, Servaes, and Tamayo (2017) (LST) show that during the Global Financial Crisis (GFC) US firms with high corporate social responsibility (CSR) ratings increased in value relative to firms with low CSR ratings. Our study raises questions about the internal and external validity of the inferences in LST. For the similar sample of US stocks, we find no evidence that high CSR firms outperformed low CSR firms during the GFC when we use a calendar-time portfolio analysis that controls for industry, or uses value-weighted portfolios. For a sample of Japanese stocks, we also fail to confirm the results reported in LST.

Keywords: Corporate Social Responsibility, Event Study, Replication, Validity Test, Japan

JEL Classification: G11, G12

Suggested Citation

Berkman, Henk and Li, Qi and Lu, Helen, Trust and the Value of CSR during the Global Financial Crisis (April 20, 2020). Available at SSRN: https://ssrn.com/abstract=3602984 or http://dx.doi.org/10.2139/ssrn.3602984

Henk Berkman

University of Auckland - Business School ( email )

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Qi Li

University of Auckland ( email )

Private Bag 92019
Auckland 1001
New Zealand

Helen Lu (Contact Author)

University of Auckland - Department of Accounting and Finance ( email )

Private Bag 92019
Auckland 1001
New Zealand

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