TITLE:
A Multi-Dimensional Analysis of Corporate Social Responsibility: The Liquidity Risk Factor
AUTHORS:
Homayoon Shalchian, Bouchra M’Zali, Hager Tebini
KEYWORDS:
Corporate Social Responsibility, Liquidity Risk Factor, Financial Performance
JOURNAL NAME:
Journal of Financial Risk Management,
Vol.7 No.3,
September
21,
2018
ABSTRACT: This study is an extension
to Shalchian et al. (2015) and investigates the effect of the “liquidity” risk
factor on the performance of socially responsible investments in different
industries and based on different dimensions of corporate social
responsibility. Using Pastor and Stambault’s liquidity risk factor, we find
that in the mining industry and based on the dimensions of “environment”, “employees’
relations” and “community involvement”, socially responsible investments are relatively
less exposed to the liquidity risk factor. Our results also suggest that
compared to conventional investments in the manufacturing and service
industries, socially responsible investment’s performance is more sensitive to
the liquidity risk factor.