Time：November 14, 2014（Friday）14:30-16：00
Venue： Room 501, Jiageng Bld 2
Topic：To Be Special, To Be Responsible: How Product Specificity Affects Corporate Social Responsibility
Presenter：Rui Shen, Assistant Professor in accounting, Nanyang Technological University
Chair: Ji Wu, Assistant Professor, Xiamen University
Abstract：
This study examines the relationship between a firm’s product specificity and its CSR activities. We argue that because those firms that are producing specialized products face higher transaction costs with their stakeholders, such firms are more incentivized to engage in CSR activities, which can help reduce the involved transaction costs. As CSR is endogenous to a firm’s product strategy, we adopt an instrumental variable (IV) approach. With a sample of 2,198 U.S. publicly-listed firms for the period of 2001–2010, we find that firms producing specialized products record a higher level of CSR; this effect is stronger for firms with higher financial leverage and operating in more uncertain industries. In addition, firms producing specialized products garner more financial benefits from CSR activities.