The Debate Over Doing Good: Corporate Social Performance and Firm-Idiosyncratic Risk (08-111)
22 Pages Posted: 2 Oct 2013
Date Written: 2008
By linking corporate social performance, advertising, and R&D to firm-idiosyncratic risk, this study finds that firms gain by "doing good." Higher levels of corporate social performance boost firm legitimacy to stakeholders, thus helping to stabilize firm stock prices.
Keywords: corporate social performance, advertising, R&D, firm-idiosycratic risk, stock prices
Suggested Citation: Suggested Citation