Corporate social responsibility and capital allocation efficiency : evidence from Australia and New Zealand : a dissertation submitted to Auckland University of Technology in partial fulfilment of the requirements for the degree of Master of Business (MBus), 2018 / Shengze Xu ; supervisors: Alireza Tourani-Rad, Alexandre Garel.
This paper studies the effect of Corporate Social Responsibility on firm's capital allocation efficiency in Australia and New Zealand. More specifically, I examine whether CSR influences a firm's investment efficiency. I use ESG ratings to measure CSR. The empirical results show that the o...
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| Format: | Ethesis |
| Language: | English |
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| Online Access: | Click here to access this resource online |
| Summary: | This paper studies the effect of Corporate Social Responsibility on firm's capital allocation efficiency in Australia and New Zealand. More specifically, I examine whether CSR influences a firm's investment efficiency. I use ESG ratings to measure CSR. The empirical results show that the overall ESG performance, the environmental dimension performance, and the social dimension performance are not significantly associated with a firm's investment efficiency. Only CSR policies or initiatives which are essentially costly to a firm are negatively associated with a firm's investment efficiency. These findings are robust to a battery of robustness checks. The results suggest that when CSR initiatives reduce a firm's capital and other critical resources, those resources are not deployed for identifying and funding growth options, resulting in investment less likely to maximize shareholders' wealth. Author supplied keywords: corporate investment; corporate social responsibility; ESG rating; investment efficiency. |
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| Physical Description: | 1 online resource |
| Bibliography: | Includes bibliographical references. |