A multi-dimensional analysis of corporate social responsibility : different signals in different industries
Abstract
This study investigates the relation between individual dimensions of corporate social responsibility (CSR) and financial performance in different industries. Using Kinder, Lydenberg and Domini (KLD) social ratings, we find that investors seem to be more sensitive to the dimension “Environment” in mining and manufacturing sectors while they seem to be more sensitive to the dimension “Employees’ welfare” in the service industry. Our results also suggest that investors perceive an additional financial risk from firm’s irresponsible behavior and consequently, they are more pre-occupied by eventual losses caused by firms’ social irresponsibility than by potential financial gains from corporate social performance.
Citation
Shalchian , H , Bouslah , K B H & M’Zali , B 2015 , ' A multi-dimensional analysis of corporate social responsibility : different signals in different industries ' , Journal of Financial Risk Management , vol. 4 , no. 2 , pp. 90-107 . https://doi.org/10.4236/jfrm.2015.42009
Publication
Journal of Financial Risk Management
Status
Peer reviewed
ISSN
2167-9533Type
Journal article
Rights
Copyright © 2015 by authors and Scientific Research Publishing Inc. This work is licensed under the Creative Commons Attribution International License (CC BY). http://creativecommons.org/licenses/by/4.0/
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