Article ID: | iaor20132431 |
Volume: | 59 |
Issue: | 5 |
Start Page Number: | 1045 |
End Page Number: | 1061 |
Publication Date: | May 2013 |
Journal: | Management Science |
Authors: | Servaes Henri, Tamayo Ane |
Keywords: | social capital |
This paper shows that corporate social responsibility (CSR) and firm value are positively related for firms with high customer awareness, as proxied by advertising expenditures. For firms with low customer awareness, the relation is either negative or insignificant. In addition, we find that the effect of awareness on the CSR–value relation is reversed for firms with a poor prior reputation as corporate citizens. This evidence is consistent with the view that CSR activities can add value to the firm but only under certain conditions.