CSR and firm value: is CSR valuable during the COVID 19 crisis in the French market?

Abstract

This study examines the impact of the COVID-19 outbreak on the French stock market and investigates whether companies with a commitment to corporate social responsibility (CSR) were less affected. Examining a sample consisting of 464 French firms, we separate firms that have implemented CSR activities around the event period (considered as active CSR adopters) from CSR-adopters (firms that did not indulge in CSR activities around that period) and non-CSR adopters. The empirical results indicate that active CSR adopters were less affected as some positive returns have been observed around the event date, indicating that their stock prices were relatively resistant to the crisis. The multivariate analysis shows that the French market reacted significantly to CSR strategy and that active CSR adopters are the least affected.

Does the sun ‘shine’ on utility firms? Evidence from pollution control bonds and overinvestment relationship

“…The variable representing Pollution Control Bonds (PCBs) is derived by dividing the total amount of PCBs, which can be found in the COMPUSTAT database, by the total assets of the utility firms (Khanchel et al , 2023a, 2023b, 2023c, 2023d). This ratio provides a measure of the extent to which a company’s pollution control financing is relative to its overall asset base: …”

“…Independent variable: PCB. The variable representing Pollution Control Bonds (PCBs) is derived by dividing the total amount of PCBs, which can be found in the COMPUSTAT database, by the total assets of the utility firms (Khanchel et al, 2023a(Khanchel et al, , 2023b(Khanchel et al, , 2023c(Khanchel et al, , 2023d. This ratio provides a measure of the extent to which a company's pollution control financing is relative to its overall asset base: The choice of the Banerjee et al (2015) measure of CEO overconfidence is based on two primary considerations.…”

“…Utility firms, particularly those operating in the energy sector, are subject to stringent environmental regulations at both the federal and state levels. This encompasses regulations concerning greenhouse gas emissions, water conservation, biodiversity protection and various other environmental aspects (Khanchel et al , 2023a). Within this context, these companies are subject to the oversight of the Environmental Protection Agency, a federal agency tasked with regulating air emissions, water discharges and other environmental concerns.…”

Sustainability and firm performance: the role of environmental, social and governance disclosure and green innovation

“…Finally, adoption of CSR regulations explains to a large extent the wave of social movements that have been growing in recent years. Although these social movements have focused more on CSR performance than CSR disclosure, ESG disclosure has led to a multitude of corporate responses, ranging from resistance to symbolic or strategically substantial responses especially during crises period (Khanchel et al, 2023a(Khanchel et al, , 2023b. Some firms resist the pressure of social movements (Hadani et al, 2018) and choose to disregard or prevent such disclosure given its costs.…”

“…As a firm and its stakeholders are dependent, satisfying stakeholders is important not only for firm survival but also for organizational legitimacy (Massey, 2001). A higher ESG disclosure leads firms to access easily resources and to win the support of stakeholders, leading to decrease economic risk (Khanchel and Lassoued, 2023) and thus increase performance (Chang and Chen, 2013).…”