The Effect of Corporate Social Responsibility on the Capital Allocation

• Main Authors: CHENG,PO-HSUN, 鄭伯勳
• Other Authors: LU,CHENG-SHOU
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/284253

碩士 === 國立高雄應用科技大學 === 財富與稅務管理系碩士在職專班 === 104 === This thesis contains listed firms in Taiwan from 2007 to 2014, and uses the “Corporate Citizen Award” record from Common Wealth Magazine as the measure of corporate social responsibility (CSR) performance. This thesis investigates the effect of CSR on the efficiency of capital allocation based on agency problem and information asymmetry perspectives. The empirical results find that CSR rating is positively related to the efficiency of capital allocation, CSR could improve the information transparency and reduce information asymmetry and agency problem to moderate the efficiency of capital allocation. The CSR components are concern, this result shows that firms overinvesting in environmental activities will reduce the efficiency of capital allocation. The firms with higher CSR rating or community involvement have less underinvestment problem. Moreover, the firms keeping the interest of customers, employees, innovation investment could mitigate the agency and overinvestment problem because of accommodating stakeholder preferences.