Finance Faculty Publications and Presentations
Awe of the blue minds: Location, corporate social responsibility, and firm value
Document Type
Article
Publication Date
4-22-2024
Abstract
Neuropsychologists claim that exposure to a massive water scene triggers the feeling of Awe which causes more prosocial behavior. I find that coastal firms have significantly higher corporate social responsibility (CSR) scores than non-coastal firms. The difference-in-difference test shows that CSR engagement erodes when firms relocate away from coasts. These results are robust to the use of propensity score matching and entropy balancing to address selection bias, Oster's test to address omitted variable bias, and control for institutional ownership, social capital, religiosity, CEO and local political orientation, and natural disaster risk. Further analysis shows that CSR creates value only for coastal firms.
Publication Title
Financial Review
DOI
10.1111/fire.12393
Recommended Citation
Ismail, G. (2024). Awe of the blue minds: Location, Corporate Social Responsibility, and Firm Value. Financial Review, 1–32. https://doi.org/10.1111/fire.12393
Comments
© 2024 The Eastern Finance Association.
https://onlinelibrary.wiley.com/share/CBUQJBXZGQGBYEJCNVNP?target=10.1111/fire.12393