Year: 2016
Type: article
Abstract: ABSTRACT Using corporate social responsibility (CSR) ratings for 23,000 companies from 114 countries, we find that a firm's CSR rating and its country's legal origin are strongly correlated. Legal origin is a stronger explanation than “doing good by doing well” factors or firm and country characteristics (ownership concentration, political institutions, and globalization): firms from common law countries have lower CSR than companies from civil law countries, with Scandinavian civil law firms having the highest CSR ratings. Evidence from quasi‐natural experiments such as scandals and natural disasters suggests that civil law firms are more responsive to CSR shocks than common law firms.
Source: The Journal of Finance
DOI: 10.1111/jofi.12487
Authors: HAO LIANG, LUC RENNEBOOG
Institutions: Harvard University, University of Antwerp, Stockholm School of Economics, Tilburg University, University of Zurich, University of Cambridge, Ghent University, Université Paris Dauphine-PSL, London Business School, Norwegian School of Economics, Ghent University Hospital, Singapore Management University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W3121521941