Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Exploring the Impact of Corporate Social Responsibility Policies on Firm Value: the Case of Listed Companies in Romania
Issue: Vol. 9, No 1, 2016
Published date: 03-2016 (print) / 03-2016 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Ştefan Cristian Gherghina
Georgeta Vintilă
Keywords: Corporate social responsibility, firm value, multivariate regression models, T-test, Romania.
DOI: 10.14254/2071-789X.2016/9-1/2
Index PUBMS: d50a867e-028c-11e8-94c4-fa163e5d4f72
Language: English
Pages: 23-42 (20)
JEL classification: G32, M14

Corporate social responsibility (CSR) highlights the reaction to social pressures, respectively the reply to the needs and expectations of stakeholders, concerns towards the environment, and social needs that depict its dimensions. Our paper aims at providing evidence on the links between CSR and firm value on the example of listed companies in Romania. The importance of this research emerges by the goal of strengthening a high level of consumer’s trust in business and the noteworthy impact of companies to societal well-being. Based on a multidimensional CSR policies questionnaire, we developed a global index of CSR, as well as four subindices on social involvement, employees, products and services, environmental protection, both equal-weighted (EW) and stakeholder-weighted (SW). Firm value was proxied by Tobin’s Q ratio adjusted according to activity sector. Based on the EW approach, we found a positive impact of the CSR global index and CSR subindices, with the exception of the CSR subindex related to environmental protection, on firm value. The SW approach reinforces only the positive impact of the CSR global index and CSR subindex on the quality, safety, and effectiveness related to products and services, on firm value. Besides, several CSR aggregate measures are significantly different for listed companies on the first tier and listed companies on the second tier.