Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 20, 2023 erstellt
Description:
We investigate whether firm corporate social responsibility (CSR) performance is associated with firm-specific earnings or its components. Resource-based view suggests firms use their unique resources, such as CSR performance, to develop competitive advantages. Competitive advantages are then reflected in earnings that are specific to the firm and not the industry overall. We therefore predict and find a positive association between CSR and firm-specific earnings. When we disaggregate firm-specific earnings into its components, CSR is positively associated with both the level of firm-specific cash flows and normal accruals, but is negatively associated with discretionary accruals. We also examine the different CSR components and find that our results are driven by CSR related to the environment and product characteristics and industry concerns. Collectively, our findings contribute to the debate on CSR and firm performance. We also provide insights for managers and investors about components of firm earnings related to CSR activities and drivers of effective CSR applications