CSR committee and firm value during the COVID-19 pandemic
DOI:
https://doi.org/10.17811/ebl.12.2.2023.137-146Keywords:
corporate social responsibility, COVID-19, CSR committee, firm value, sustainabilityAbstract
This paper investigates whether the presence of CSR committees has a mitigating effect on firm value (measured by Tobin’s Q) during the COVID-19 pandemic. Analyzing UK listed firm data, we find that although the pandemic results in lower firm value, the presence of CSR committees helps to mitigate the negative impact of COVID-19 on firm value. The results suggest that the formation of CSR committees is not a symbolic impression management tool but an effective sustainability governance mechanism during the crisis. Our results should be helpful for regulators and companies in making decisions related to CSR committees.
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