Can social capital and reputation mitigate political and market competition risk?

Andriosopoulos, Dimitris and Deepty, Sheikh Tanzila (2022) Can social capital and reputation mitigate political and market competition risk? European Journal of Finance. ISSN 1351-847X (In Press)

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Abstract

We assess whether social capital, captured by CSR, is an effective hedge against risks arising from political and market competition risk. Having a higher CSR score significantly reduces stock return volatility during political uncertainty, but not cash flow volatility. Meanwhile, CSR is also an effective hedge against stock return volatility that arises from peer competition. Finally, the hedging effect of CSR on stock return volatility is transient, but has a positive effect on firms' future performance and growth opportunities

ORCID iDs

Andriosopoulos, Dimitris ORCID logoORCID: https://orcid.org/0000-0003-3033-2308 and Deepty, Sheikh Tanzila;
  • Item type:Article
    ID code:81710
    Dates:
    Date
    Event
    25 July 2022
    Published
    25 July 2022
    Accepted
    Keywords:CSR, ESG, social capital, risk, gubernatorial elections, product market fluidity, operational hedge, Economic Theory, Economics, Econometrics and Finance (miscellaneous)
    Subjects:Social Sciences > Economic Theory
    Department:Strathclyde Business School > Accounting and Finance
    Depositing user: Pure Administrator
    Date deposited:04 Aug 2022 09:28
    Last modified:18 Jan 2023 11:39
    Related URLs:
    URI:https://strathprints.strath.ac.uk/id/eprint/81710
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