Testing Value Relevance of Corporate Social Responsibility: Evidence from Korean Retail Firms

• 발행기관: 한국유통과학회
• 저자명: Sam-Ho SON Jeong-Hwan LEE
• 간행물 정보: 『KODISA ICBE (International Conference on Business and Economics)』2018 International Conference on Business and Economics (ICBE 2018), 347~352쪽, 전체 6쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2018.06.25

영문 초록

This paper examines the value relevance of socially responsible activities in the Korean retail firms. Recent studies generally predict positive relationships between socially responsible activities and the value of corporation. We use the environmental score, social score, governance score and the sum of these three scores to represent a fim’s effectiveness of socially responsible activities. These scores are published by the Korean Corporate Governance Service. This paper adopts a share price valuation model to evaluate the effect of socially responsible activities on a firm’s share price, which controls for the book value per share and earnings per share. The ordinary least square method is employed to examine the relationship. The sample of Korea retail firms is examined from 2011 to 2016. We also conduct sub-sample analysis based on the categorization of chaebol affiliates and non-chaebol affiliates. The entire sample analysis finds neither negatively nor positively significant relationship between socially responsible activities and the value of a corporation. In contrast, our examinations find a significantly positive valuation effect of social score within non-chaebol retail firms. The results weakly support the positive valuation effect of socially responsible activities. The results are in line with recent studies that highlight heterogeneous effects of socially responsible activities on corporate policies and valuation.

목차

1. Introduction

2. Literature Review

3. Sample Selection and Empirical Methods

4. Empirical Results

5. Conclusions

키워드

Chaebol Affiliates Corporate Social Responsibility ESG score Retail Industry Valuation