Congrats to Ferrell (Harvard), Liang and Rennenboog (both of Tiburg University) for thier reciept of the Moskowitz Prize for 2014 by Berkeley Haas (U Cal Berkeley) for thier completion of a study linking governance, corporate social responsibility ("CSR") and imapct to shareholder value.
The award was related to the completion of a study titled "Socially Responsible Firms" by Ferrell, Liang and Renneboog. The study goes further than others to test the hypothesis that firms that practice CSR maximize shareholder wealth and also considers the agency view or that CSR distracts management from thier daily roles.
This study relied on MSCIs IVA metric and Vigeo's ESG Ratings database. This paper was somewhat unique in that it considered ex ante or future implications managerial incentives and surmised that CSR can counterbalance the negative impacts of management entrenchment or when managerial interests outweigh shareholder interest, thus leading to greater shareholder value.
So instead of observing companies that companies with bad corporate governance having high social resonsibility levels, the opposite is observed which is value creation promotes good in society.
Check out this article in Newswise at http://www.newswise.com/articles/view/625947/.
The award was related to the completion of a study titled "Socially Responsible Firms" by Ferrell, Liang and Renneboog. The study goes further than others to test the hypothesis that firms that practice CSR maximize shareholder wealth and also considers the agency view or that CSR distracts management from thier daily roles.
This study relied on MSCIs IVA metric and Vigeo's ESG Ratings database. This paper was somewhat unique in that it considered ex ante or future implications managerial incentives and surmised that CSR can counterbalance the negative impacts of management entrenchment or when managerial interests outweigh shareholder interest, thus leading to greater shareholder value.
So instead of observing companies that companies with bad corporate governance having high social resonsibility levels, the opposite is observed which is value creation promotes good in society.
Check out this article in Newswise at http://www.newswise.com/articles/view/625947/.
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