I find evidence to support the negative impact of growth options on corporate social responsibility (CSR). I propose that attention-constrained managers reduce corporate goodness to focus on growth opportunities. The effect is more pronounced for well-governed firms, for financially-constrained firms, and for capital-intensive social dimensions. Firms reduce their research and development (R&D) and capital expenditures, and experience lower annual buy-and-hold abnormal returns (BHAR) subsequent to significant increases in their social performance. I also report value implications of CSR investments. The empirical evidence suggests that managerial choices to divert attention from growth projects toward CSR hurt shareholders.

<div>We develop a growth option and asset pricing model that incorporates uncertain cash flow volatility by way of a bounded quadratic diffusion. Using different measures of risk uncertainty, we study the combined effects of risk and its associated uncertainty on project values, firm investment, and the resulting returns. Uncertain cash flow volatility is modeled by a Jacobi process, and our main interest is the effect of the max uncertainty arising from the diffusion term. For comparison, we also model the volatility by a CIR process. In regards to the Jacobi process, we consider upper and lower bounds on cash flow volatility as measures of uncertainty. For the max uncertainty and upper bound, we find that higher uncertainty leads to less investment, higher returns, and lower project values. In the case of the lower bound, we find that higher uncertainty leads to more investment, lower returns, and higher project values. Comparatively, using a CIR process in place of the Jacobi process yields differences in returns and growth option values, showing the importance of the diffusion term in the volatility process. Finally, we have reduced the computational complexity of the simulation. This allows the user to generate long time series and run cross sectional regressions with many firms.</div>

Diplomová práce se zabývá problematikou rozvoje konkurenceschopnosti obchodní firmy v Brně. V teoretické rovině je zaměřena na odborné poznatky a nejnovější trendy v oblasti strategie a konkurenceschopnosti. Na základě literárního průzkumu analyzuje a zhodnocuje stávající přístup k strategickému plánování v dané společnosti. V rámci analytické části je provedena strategická analýza firmy. Na základě literární rešerše a strategické analýzy je zpracován návrh strategie, který si klade za cíl přispět k efektivnějšímu řízení interních procesů, systematičtějšímu přístupu ke strategickému plánování a v konečném důsledku k zvýšení konkurenceschopnosti firmy.