Home > Research > Publications & Outputs > Stakeholder Preference and Strategic Corporate ...

Links

Text available via DOI:

View graph of relations

Stakeholder Preference and Strategic Corporate Social Responsibility

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Forthcoming
<mark>Journal publication date</mark>4/09/2022
<mark>Journal</mark>Journal of Corporate Finance
Publication StatusAccepted/In press
<mark>Original language</mark>English

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 re-main 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.