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Stakeholder Preference and Strategic Corporate Social Responsibility

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Article number102286
<mark>Journal publication date</mark>31/12/2022
<mark>Journal</mark>Journal of Corporate Finance
Number of pages27
Publication StatusPublished
<mark>Original language</mark>English


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.