Common Ownership and Corporate Social Responsibility
Review of Corporate Finance Studies, Forthcoming
56 Pages Posted: 18 Sep 2020 Last revised: 21 Jun 2021
Date Written: August 6, 2020
This paper studies the effect of common ownership on corporate social responsibility (CSR). We find that common ownership is positively associated with a firm's CSR score. The effect is stronger for firms in more competitive industries. We propose a two-stage duopoly game in which CSR serves as a commitment device to expand output aggressively to understand the empirical results.
Keywords: common ownership, corporate social responsibility, competition
JEL Classification: G30, G32, D21, D22, L13, L21, L22
Suggested Citation: Suggested Citation