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The impact of Corporate Social Responsibility on Corporate Risk Taking and Firm Value

Çelniku, Kliti LU and Chen, Yao LU (2019) BUSN79 20191
Department of Business Administration
Abstract
The aim of the study is to shed light on how CSR activities affect firm
value through its impact on corporate risk taking. We formed a panel data sample based on the European market and analyzed it by random effects models. The theoretical frameworks of this thesis are Stakeholder theory,
Shareholder theory, Agency theory, and Risk management theory. The sample consists of all the public listed European companies which disclosed ESG score within the period from 2014 to 2018.
We found that the joint effect of CSR and corporate risk taking has a
positive impact on firm value. In addition, by investigating the
relationship between CSR performance, the deviations from the
optimal risk taking, and firm value, we found that involving in... (More)
The aim of the study is to shed light on how CSR activities affect firm
value through its impact on corporate risk taking. We formed a panel data sample based on the European market and analyzed it by random effects models. The theoretical frameworks of this thesis are Stakeholder theory,
Shareholder theory, Agency theory, and Risk management theory. The sample consists of all the public listed European companies which disclosed ESG score within the period from 2014 to 2018.
We found that the joint effect of CSR and corporate risk taking has a
positive impact on firm value. In addition, by investigating the
relationship between CSR performance, the deviations from the
optimal risk taking, and firm value, we found that involving in CSR
activities reduces the deviation from the optimal risk taking which
increases the firm value. (Less)
Please use this url to cite or link to this publication:
author
Çelniku, Kliti LU and Chen, Yao LU
supervisor
organization
course
BUSN79 20191
year
type
H1 - Master's Degree (One Year)
subject
keywords
Corporate social responsibility, Corporate Risk Taking, Firm value, ESG score, Stakeholders, CSR
language
English
id
8987442
date added to LUP
2019-09-30 13:55:07
date last changed
2019-09-30 13:55:07
@misc{8987442,
  abstract     = {{The aim of the study is to shed light on how CSR activities affect firm
value through its impact on corporate risk taking. We formed a panel data sample based on the European market and analyzed it by random effects models. The theoretical frameworks of this thesis are Stakeholder theory,
Shareholder theory, Agency theory, and Risk management theory. The sample consists of all the public listed European companies which disclosed ESG score within the period from 2014 to 2018.
We found that the joint effect of CSR and corporate risk taking has a
positive impact on firm value. In addition, by investigating the
relationship between CSR performance, the deviations from the
optimal risk taking, and firm value, we found that involving in CSR
activities reduces the deviation from the optimal risk taking which
increases the firm value.}},
  author       = {{Çelniku, Kliti and Chen, Yao}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The impact of Corporate Social Responsibility on Corporate Risk Taking and Firm Value}},
  year         = {{2019}},
}