Post-innovation CSR Performance and Firm Value
Journal of Business Ethics · 2017 · Volume 140 · Issue 2
DOI: 10.1007/s10551-015-2676-3
Abstract
Analyzing a sample of 13,917 US firm–years from 1991 to 2006, we find that more innovative firms demonstrate high corporate social responsibility (CSR) performance subsequent to a successful innovation. These high-CSR innovative firms enjoy significantly higher valuation post-innovation. These findings imply that firms with demonstrated potential growth opportunities, as evident from the number of registered patents and their citations, benefit by strategically investing more in CSR activities; that is, CSR investment entails ‘doing well by [strategically] doing good.’
Keywords
Patents, Citations, Innovation, Corporate social responsibility, Tobin’sQ
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