Country-level institutions, firm value, and the role of corporate social responsibility initiatives

• 成果类型: Article
• 署名作者: El Ghoul, Sadok; Guedhami, Omrane; Kim, Yongtae
• 署名单位: University of Alberta; University of South Carolina System; University of South Carolina Columbia; Santa Clara University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/jibs.2016.4
• 发表日期: 2017
• 页码: 360-385
• 关键词: institutions and international business; institutional void; Corporate social responsibility; transaction costs; Firm value

摘要

Drawing on transaction cost theories and the resource-based view of a firm, we posit that the value of corporate social responsibility (CSR) initiatives is greater in countries where an absence of market-supporting institutions increases transaction costs and limits access to resources. Using a large sample of 11,672 firm year observations representing 2445 unique firms from 53 countries during 2003-2010 and controlling for firm-level unobservable heterogeneity, we find supportive evidence that CSR is more positively related to firm value in countries with weaker market institutions. We also provide evidence on the channels through which CSR initiatives reduce transaction costs. We find that CSR is associated with improved access to financing in countries with weaker equity and credit markets, greater investment and lower default risk in countries with more limited business freedom, and longer trade credit period and higher future sales growth in countries with weaker legal institutions. Our findings provide new insights on non-market mechanisms such as CSR through which firms can compensate for institutional voids.