The Debate Over Doing Good: Corporate Social Performance and Firm-Idiosyncratic Risk (08-111)

22 Pages Posted: 2 Oct 2013

See all articles by Xueming Luo

Xueming Luo

Temple University

CB Bhattacharya

European School of Management and Technology (ESMT); Katz Graduate School of Business University of Pittsburgh

Date Written: 2008

Abstract

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

Luo, Xueming and Bhattacharya, Chitrabhanu, The Debate Over Doing Good: Corporate Social Performance and Firm-Idiosyncratic Risk (08-111) (2008). Available at SSRN: https://ssrn.com/abstract=2333517 or http://dx.doi.org/10.2139/ssrn.2333517

Xueming Luo

Temple University ( email )

1810 N. 13th Street
Floor 2
Philadelphia, PA 19128
United States

HOME PAGE: http://www.fox.temple.edu/mcm_people/xueming-luo/

Chitrabhanu Bhattacharya (Contact Author)

European School of Management and Technology (ESMT) ( email )

Schlossplatz 1
10117 Berlin
Germany

Katz Graduate School of Business University of Pittsburgh ( email )

Pittsburgh, PA
United States
4123834212 (Phone)

HOME PAGE: http://www.business.pitt.edu/faculty/bhattacharya

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