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@article{ART001931938},
author={LEE JI HYE and Hee Sub Byun},
title={Corporate Social Responsibility Activities, Dividend Policy, and Firm Value},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2014},
volume={25},
number={4},
pages={99-141}

TY - JOUR
AU - LEE JI HYE
AU - Hee Sub Byun
TI - Corporate Social Responsibility Activities, Dividend Policy, and Firm Value
JO - Journal of Insurance and Finance
PY - 2014
VL - 25
IS - 4
PB - Korea Insurance Research Institute
SP - 99
EP - 141
SN - 2384-3209
AB - This paper investigates the effect of corporate social responsibility (CSR) activities and dividend policy on the firm value. Empirically, we confirm that the positive effect of CSR on the firm value is strongly observed in firms with high dividend payout. This implies that shareholders (or investors) grant relatively high value to the CSR activities only when they are guaranteed by the proper monetary compensation such as dividends. We can interpret this result that the dividend is considered as a bonding mechanism for CSR, which can be abused by managers and cause the agency problems. This result is robust after controlling the endogeneity problems and employing the environmental management activities as alternative measures for CSR. Additionally, our results is strongly observed in firms with weak corporate governance structure, as the bonding role of dividend payout would be prominent in those firms. Our results have an important strategical implications on how the firms establish their financial policies such as CSR and dividends to maximize the firm value.
KW - Corporate Social Responsibility;Dividend Policy;Agency Problem;Firm Value;Environmental Management
DO -
UR -
ER -

LEE JI HYE and Hee Sub Byun. (2014). Corporate Social Responsibility Activities, Dividend Policy, and Firm Value. Journal of Insurance and Finance, 25(4), 99-141.

LEE JI HYE and Hee Sub Byun. 2014, "Corporate Social Responsibility Activities, Dividend Policy, and Firm Value", Journal of Insurance and Finance, vol.25, no.4 pp.99-141.

LEE JI HYE, Hee Sub Byun "Corporate Social Responsibility Activities, Dividend Policy, and Firm Value" Journal of Insurance and Finance 25.4 pp.99-141 (2014) : 99.

LEE JI HYE, Hee Sub Byun. Corporate Social Responsibility Activities, Dividend Policy, and Firm Value. 2014; 25(4), 99-141.

LEE JI HYE and Hee Sub Byun. "Corporate Social Responsibility Activities, Dividend Policy, and Firm Value" Journal of Insurance and Finance 25, no.4 (2014) : 99-141.

LEE JI HYE; Hee Sub Byun. Corporate Social Responsibility Activities, Dividend Policy, and Firm Value. Journal of Insurance and Finance, 25(4), 99-141.

LEE JI HYE; Hee Sub Byun. Corporate Social Responsibility Activities, Dividend Policy, and Firm Value. Journal of Insurance and Finance. 2014; 25(4) 99-141.

LEE JI HYE, Hee Sub Byun. Corporate Social Responsibility Activities, Dividend Policy, and Firm Value. 2014; 25(4), 99-141.

LEE JI HYE and Hee Sub Byun. "Corporate Social Responsibility Activities, Dividend Policy, and Firm Value" Journal of Insurance and Finance 25, no.4 (2014) : 99-141.