Corporate Social Performance, Firm Valuation, and Industrial Difference: Evidence from Hong Kong

Stephen Y L CHEUNG, Kun Jiang, Billy S C MAK, Weiqiang TAN*

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    17 Citations (Scopus)

    Abstract

    This study addresses two issues. First, does corporate social performance matter in Hong Kong. Second, if yes, is it relevant to some industries more than others. To answer these questions, we develop a corporate social performance index (CSP) to measure the quality of corporate social performance of major Hong Kong listed firms. The criteria are based on the OECD Principles of Corporate Governance. Using the 3-year period from 2002 to 2005, we find that firm valuation is positive and significantly associated with CSP. Interestingly, this relation matters less in China related firms and firms with a concentrated ownership structure. The results also show that CSP impacts firm valuation more positively when the firm is in the service sector. We further find that CSP is positively related to the market valuation of the subsequent year.

    Original languageEnglish
    Pages (from-to)625-631
    Number of pages7
    JournalJournal of Business Ethics
    Volume114
    Issue number4
    DOIs
    Publication statusPublished - Jun 2013

    Scopus Subject Areas

    • Business and International Management
    • Business, Management and Accounting(all)
    • Arts and Humanities (miscellaneous)
    • Economics and Econometrics
    • Law

    User-Defined Keywords

    • Corporate social performance
    • Firm valuation
    • Hong Kong market

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