Work

Are investments in material corporate social responsibility issues a key driver of financial performance?

Year: 2022

Type: article

Abstract: In this study, we address a lesser‐studied aspect of corporate social responsibility (CSR): distinguishing between investments in material versus immaterial CSR issues. The financial performance of stock portfolios formed according to material and general CSR issues is examined over the period 2007 to 2018 in the European Union and the United States. We find that materiality is relevant to finding the best and worst firms both in terms of CSR and financial performance, more significantly in the EU than in the US market. However, general CSR scores, including material and immaterial issues, do not discriminate the best firms.

Source: Accounting and Finance

DOI: 10.1111/acfi.12912

Authors: Guillermo Badía, Fernando Gómez‐Bezares, Luis Ferruz

Institutions: Universidad de Deusto, Universidad de Zaragoza

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,050

Funders: Gobierno de Aragón, European Social Fund