Corporate Social Responsibility, Product Strategy, and Firm Value
Corresponding Author
Eunho Cho
Accounting and Finance Department, North Carolina A&T State University, United States
*Corresponding author: Accounting and Finance Department, North Carolina A&T State University, 1601 East Market Street, Greensboro, NC 27411, United States. Tel: +1-336-285-3357, email: echo@ncat.edu.
Search for more papers by this authorAlbert Tsang
School of Accounting and Finance, Hong Kong Polytechnic University, Hong Kong
Search for more papers by this authorCorresponding Author
Eunho Cho
Accounting and Finance Department, North Carolina A&T State University, United States
*Corresponding author: Accounting and Finance Department, North Carolina A&T State University, 1601 East Market Street, Greensboro, NC 27411, United States. Tel: +1-336-285-3357, email: echo@ncat.edu.
Search for more papers by this authorAlbert Tsang
School of Accounting and Finance, Hong Kong Polytechnic University, Hong Kong
Search for more papers by this authorAbstract
This study examines the role of a firm’s product strategy on the relationship between corporate social responsibility (CSR) and firm value. Using a sample of 1287 firm-year observations of Korean listed manufacturing firms from 2005 to 2016, we find that a firm’s product differentiation strategies strengthen the association between CSR and firm value, whereas cost-leadership strategies weaken such a relationship. Our findings demonstrate the importance of attaining a strategic fit between CSR activities and product strategies, and highlight the importance of considering a firm’s product strategy when evaluating a firm’s CSR investment.
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