Does Corporate Social Responsibility Reduce Information Asymmetry? Evidence from Research and Development Intensive Firms
نویسندگان
چکیده
In this study, we empirically investigate about the validity of using a corporate social responsibility (CSR) index as a role of reduction of information asymmetry in research and development (R&D) intensive firms. Employing a comprehensive sample of U.S. firms that engaged with CSR during the 1991-2015 period, we find that overall CSR index, which is consisted of equally weighted seven dimensions, is not an appropriate variable for measuring CSR related to R&D intensive firms. In addition, we test each of CSR’s dimensions in order to figure out which dimension of CSR affects reduction in information asymmetry of R&D intensive firms. Each dimension of CSR’s strength and concern also supports our main result consistently.
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