Title: Effects of corporate social responsibility for environmental, social, and governance sectors on firm value: a comparison between consumer and industrial goods companies

Authors: Wonsik Sul; Yejee Lee

Addresses: Division of Business Administration, Sookmyung Women's University, Cheongpa-ro 47-gil 100, Yongsan-gu, Seoul, 04310, South Korea ' Division of Business Administration, Sookmyung Women's University, Cheongpa-ro 47-gil 100, Yongsan-gu, Seoul, 04310, South Korea

Abstract: This study categorised the corporate social responsibility activity of companies into environmental, social, and governance segments and sample companies into consumer goods companies and industrial goods companies. Next, we empirically analysed the effect of each segment on firm value using panel data of 295 companies between 2011 and 2016. First, corporate social responsibility was found to have a positive effect on firm value. Second, in segmental corporate social responsibility activity, the effect of the environmental and social segments on firm value was positive and significant, while that of the governance segment was not significant. Finally, the environmental and social segments of consumer goods companies had a significant positive effect on firm value, whereas only the environmental segment had a significant positive effect on the firm value of industrial goods companies. These results demonstrate the necessity for each industry to emphasise specific segments to improve firm value.

Keywords: corporate social responsibility; firm value; consumer goods companies; industrial goods companies.

DOI: 10.1504/EJIM.2020.109817

European Journal of International Management, 2020 Vol.14 No.5, pp.866 - 890

Received: 28 Sep 2017
Accepted: 16 Jun 2018
Published online: 25 Sep 2020 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article