Corporate Social Responsibility, Religion, and Firm Risk

In this article, we examine the empirical influence of the combined effect of Corporate social responsibility (CSR) and the degree of local community religiosity on firm risk by investigating their unidirectional and endogenous effects. Employing a large US sample, we find an inverse association bet...

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Bibliographic Details
Published in:Asia-Pacific journal of financial studies 2017, 46(2), , pp.305-340
Main Authors: Cui, Jinhua, Jo, Hoje, Na, Haejung
Format: Article
Language:English
Subjects:
Corporate social responsibility
Firm risk
Hypotheses
Local community religiosity
Social license to operate hypothesis
Social responsibility
경영학
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Summary:In this article, we examine the empirical influence of the combined effect of Corporate social responsibility (CSR) and the degree of local community religiosity on firm risk by investigating their unidirectional and endogenous effects. Employing a large US sample, we find an inverse association between CSR–religiosity and firm risk after controlling for various firm characteristics. Also, after mitigating endogeneity bias, we still find a negative association between CSR–local community religiosity and firm risk. We interpret these results to support the social license to operate (SLO) explanation: the lower the level of firm risk, the higher the level of SLO.
ISSN:2041-9945
2041-6156
DOI:10.1111/ajfs.12171