Stakeholder preference and strategic corporate social responsibility
Stakeholder preference and strategic corporate social responsibility
This paper investigates the role of stakeholder preference on corporate social responsibility (CSR) strategies. Using a staggered difference-in-difference approach, we show that Indian firms increase CSR expenses when trade restrictions (Antidumping) are initiated against competing Chinese exports from countries with a high stakeholder preference for CSR. However, when these shocks emanate from countries with a lower stakeholder preference, CSR expenses remain unchanged. Capital expenditure and R&D of Indian firms increase following AD shocks, irrespective of their country of origin. Finally, CSR increases firm value only when the demand shocks originate from countries with a higher CSR preference. Collectively, we provide evidence for consumer-driven CSR strategies.
Anti-dumping, Corporate social responsibility, Firm investment, India, International trade
Banerjee, Shantanu
cc6fab6c-1153-453a-9462-3c7b7b6be597
Homroy, Swarnodeep
bf9526ca-76e9-4d1f-8b8e-0be867b684f1
Slechten, Aurélie
1728a104-a04c-4b4d-b499-5ac079744e95
12 October 2022
Banerjee, Shantanu
cc6fab6c-1153-453a-9462-3c7b7b6be597
Homroy, Swarnodeep
bf9526ca-76e9-4d1f-8b8e-0be867b684f1
Slechten, Aurélie
1728a104-a04c-4b4d-b499-5ac079744e95
Banerjee, Shantanu, Homroy, Swarnodeep and Slechten, Aurélie
(2022)
Stakeholder preference and strategic corporate social responsibility.
Journal of Corporate Finance, 77, [102286].
(doi:10.1016/j.jcorpfin.2022.102286).
Abstract
This paper investigates the role of stakeholder preference on corporate social responsibility (CSR) strategies. Using a staggered difference-in-difference approach, we show that Indian firms increase CSR expenses when trade restrictions (Antidumping) are initiated against competing Chinese exports from countries with a high stakeholder preference for CSR. However, when these shocks emanate from countries with a lower stakeholder preference, CSR expenses remain unchanged. Capital expenditure and R&D of Indian firms increase following AD shocks, irrespective of their country of origin. Finally, CSR increases firm value only when the demand shocks originate from countries with a higher CSR preference. Collectively, we provide evidence for consumer-driven CSR strategies.
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Accepted/In Press date: 4 September 2022
e-pub ahead of print date: 20 September 2022
Published date: 12 October 2022
Keywords:
Anti-dumping, Corporate social responsibility, Firm investment, India, International trade
Identifiers
Local EPrints ID: 499576
URI: http://eprints.soton.ac.uk/id/eprint/499576
ISSN: 0929-1199
PURE UUID: 83d13d81-7176-437d-98e9-f208bbad9ecd
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Date deposited: 27 Mar 2025 17:33
Last modified: 22 Aug 2025 02:47
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Contributors
Author:
Shantanu Banerjee
Author:
Swarnodeep Homroy
Author:
Aurélie Slechten
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