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.
Identifer | oai:union.ndltd.org:USF/oai:scholarcommons.usf.edu:etd-8781 |
Date | 30 October 2018 |
Creators | Thompson, Linh |
Publisher | Scholar Commons |
Source Sets | University of South Flordia |
Detected Language | English |
Type | text |
Format | application/pdf |
Source | Graduate Theses and Dissertations |
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