Does Entrepreneurship and Corporate Social Responsibility Act as Catalyst towards Firm Performance and Brand Value?

Abstract

This paper aims at exploring the influence of corporate social responsibility (CSR) on firm performance and brand value for the companies covered within the top list of 50 U.S. companies for Social Responsibility drawn up by the Boston College Center for Corporate Citizenship and Reputation Institute, over the period 2008-2011. Moreover, this paper attempts to relate CSR with entrepreneurship, respectively Corporate Social Entrepreneurship and Corporate Entrepreneurship. Firm performance was measured both through accounting-based (return on assets and return on equity) and market-based firm performance measures (earnings per share). Brand value was proxied through Brand Finance data. CSR was reflected through the index developed by Carroll School of Management's Center for Corporate Citizenship at Boston College in conjunction with the Reputation Institute. By employing panel data regression models, there resulted a positive and statistically significant relationship between CSR and firm performance as proxied by return on assets. However, we notice the lack of any statistically significant relationships between CSR and return on equity, as well as CSR and earnings per share. Furthermore, there was found no association between CSR and brand value.

Is the Social Responsibility Information Disclosed by the Companies really Valuable?—Evidence from Chinese Stock Price Synchronicity

“…Dahlsrud believes that CSR mainly covers five major aspects: Environment, society, economy, stakeholders, and voluntary behavior [13]. Afterwards, scholars focused on the economic consequences of CSR, mainly involving the impact of CSR on stock price performance [14,15], corporate performance and value [16][17][18][19], earnings management, and so on. In addition, a few studies have examined the impact of CSR on analysts' earnings forecasts [11], stock price crash risk [5,20,21], stock price synchronicity [22], and insider trading [23,24].…”

“…Also, the disclosure of CSR information is of great value in helping external information users to understand corporate performance in various aspects, such as business strategy, social welfare, and sustainable development. In order to achieve a higher performance and shape the corporate image, listed companies have an incentive to fulfill CSR and disclose relevant information in a timely manner [17]. Based on the "information efficiency view", when CSR reports make investors have a more company-level information basis for decision-making, the stock price formed by investors' trading decision-making behavior has more content of firm-specific information, and thus stock price synchronicity is lower [8].…”

Knowledge-Based Social Entrepreneurship and The Creation of Social Enterprises’ in South East Asia: Indonesian Cases

“…[27]. The CSE was built with the ultimate goal of accelerating the company's organizational transformation into a stronger societal betterment [28]. Meanwhile, Austin and Reficco see CSE as a process of refreshing and promoting CSR development, not a new form of CSR.…”

Corporate Social Responsibility and Insider Trading: Evidence from China

“…In the past, research on the economic effects of CSR reports has mainly focused on the impact on corporate performance and value [11,12], stock prices [13,14], stock returns [15], etc., and generally classified the disclosure of CSR information into mandatory disclosure and voluntary disclosure at home and abroad. However, without involving semi-mandatory disclosure, there is a research gap [16][17][18].…”