Journal ArticleDOI
The impact of the dimensions of social performance on firm risk
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TLDR
The authors examined the impact of individual dimensions of social performance (SP) on firm risk (total and idiosyncratic) using 16,599 firm-year observations over the period 1991-2007, and found that firm risk for S&P500 members is positively affected by Employee, Diversity, and Corporate Governance concerns.Abstract:
This paper examines the impact of the individual dimensions of social performance (SP) on firm risk (total and idiosyncratic) using 16,599 firm-year observations over the period 1991–2007. We find that firm risk for S&P500 members is positively affected by Employee, Diversity, and Corporate Governance concerns. On the other hand, Community (Diversity) strengths negatively (positively) affect their risk. As to non-S&P500 members, firm risk is positively affected by Employee concerns and Diversity strengths. However, firm risk of non-S&P500 members is negatively affected by Environment strengths. The direction of causation between firm risk and SP depends on the dimension examined.read more
Citations
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Corporate Social Responsibility and Investment Efficiency
TL;DR: In this paper, the authors investigate the relationship between Corporate Social Responsibility (CSR) and investment efficiency and provide strong and robust evidence that high CSR involvement decreases investment inefficiency and consequently increases investment efficiency.
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Valuation effects of corporate social responsibility
TL;DR: In this article, the authors developed a valuation model of the firm that provides for the expenditure of corporate resources in support of community, social or environmental causes, and showed that under certain circumstances CSR expenditures create value for the firm.
Journal ArticleDOI
Impact of ESG factors on firm risk in Europe
TL;DR: In this article, the authors investigate the impact of corporate social performance (CSP) operationalized by environmental, social, and governance factors on market-based firm risk in Europe and find that a higher CSP decreases total and idiosyncratic risk.
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Measuring the level and risk of corporate responsibility – An empirical comparison of different ESG rating approaches
TL;DR: In this article, the authors compare different rating approaches of corporate social performance (CSP) using environmental, social and corporate governance (ESG) scores of three important sustainability rating providers.
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Environmental and Social Disclosures and Firm Risk
TL;DR: In this paper, the authors examined the link between a firm's environmental and social disclosure and measures of its risk including total, systematic, and idiosyncratic risk, and they found a negative and significant association between these disclosures and the firm's total and individual risk.
References
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Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this article, the authors identify five common risk factors in the returns on stocks and bonds, including three stock-market factors: an overall market factor and factors related to firm size and book-to-market equity.
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Eugene F. Fama,Kenneth R. French +1 more
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Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches
TL;DR: In this article, the authors examine the different methods used in the literature and explain when the different approaches yield the same (and correct) standard errors and when they diverge, and give researchers guidance for their use.