Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis
- trust •
- social capital •
- Corporate Social Responsibility •
- financial crisis •
- stock returns
We study the extent to which a firm's social capital, as measured by the intensity of a firm's corporate social responsibility (CSR) activities, affects firm performance during the 2008-2009 financial crisis. We find that high-CSR firms have crisis-period stock returns that are four to seven percentage points higher than low-CSR firms, all else equal.