Economic Implications of Corporate Social Responsibility and Responsible Investments

摘要: Paper 1 (with Catalin Starica): This study conducts an in-depth analysis of the association between a unique ten-dimensional set Corporate Social Responsibility (CSR) scores and firm profitability, as measured by Return on Assets (ROA). We find that non-linear (semi or non-parametric) regression methods bring important improvements in explaining profitability relative to classical linear approach. While number CSR variables like corporate governance, talent attraction codes conduct might have some explanatory power, do not improve over standard known be associated with ROA. 2 Constantin Belu): paper proposes novel index based Data Envelopment Analysis (DEA) model. Acknowledging argument companies favor those dimensions provide strategic competitive advantages, we argue can capture companies’ approach CSR. Furthermore, our findings reveal neutral relationship this economic performance ROA Tobin’s Q, when controlling for unobserved heterogeneity past performance. By contrast, equally-weighted same indicators is found negatively related ROA, which reinforces claim specific DEA-based measure 3: Using detailed data seven environmental, social, governance (ESG) attributes long panel large publicly-traded U.S. firms during July 1992-June 2008, only community relations were had positive effect risk-adjusted stock returns, was compensation risk but could due mispricing. Additionally, changing employee from 2003 negative 2003-June 2008. The mispricing, whereas there evidence low non-sustainability risk. A weak human-rights product safety returns more recent period also likely implications are certain ESG value relevant they efficiently incorporated into prices. 4: investigates how annual abnormal react current rating revisions responsible behavior spanning 16 years. I increases less led persistent particularly strong area weaker environment. These results robust concerns endogeneity, i.e., price movements would lead update areas social responsibility concerns. In already did generate systematic reaction returns.