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Journal of Industrial Economics and TradeKIET Korea Institute for Industrial Economics and Trade

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Journal of Industrial Economics and Trade(JIET)」 is a biannual periodical. It contains creative theoretical and empirical researches and papers that will contribute to the economic and industrial policy making. Submissions are cordially invited.

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A Study on the Non linear Relationship Between CSR and Corporate Value and the Industrial Threshold Points

Author Kim, Jonghee Date 2020.12.31 Series
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By examining the relationship between the Corporate Social Responsibility (CSR) and Corporate Value while focusing on the industrial characteristics of 8 industries over the period 2014∼2018, this paper analyzes the non linearity from this relationship.

 

It is able to use the results of its empirical analysis to draw the following three conclusions.

 

First, the estimated ESG index implies that Communication industry has the highest value of CSR, while Manufacturing and Distribution industry have the lowest one. Second, there is a clear and significant non linear relationship between CSR and corporate value, it implies that the U-shaped exists in the Korean Firms. Third, such a non linear tendency is mush stronger in the industries of Communication, Manufacturing, Services, Finance-Insurance, and Energy-Gas. Finally, the estimated threshold points from the non linear relationship between CSR and corporate value implies that it takes more time to increase corporate value in the industries of Manufacturing, and Finance-Insurance while there is a high possibility of increasing value in the industries of Communication and Services from the little gab between the threshold points and mean value of ESG. Additionally, there is little possibility of increasing corporate value in other industries from the extreme threshold points or a typical linar relationship.