Corporate Social Responsibility as a Strategic Means to Attract Foreign Investment: Evidence from Korea
- 주제(키워드) CSR performance , corporate reputation , foreign ownership
- 주제(기타) GREEN & SUSTAINABLE SCIENCE & TECHNOLOGY; Environmental Sciences; Environmental Studies
- 설명문(일반) [Lee, Juil] Yonsei Univ, Yonsei Business Res Inst, Seoul 03722, South Korea; [Kim, Sang-Joon] Ewha Womans Univ, Ewha Sch Business, Seoul 03760, South Korea; [Kwon, Insu] Sejong Univ, Coll Business Adm, Seoul 05006, South Korea
- 등재 SCIE, SSCI, SCOPUS
- 발행기관 MDPI AG
- 발행년도 2017
- URI http://www.dcollection.net/handler/ewha/000000149970
- 본문언어 영어
- Published As http://dx.doi.org/10.3390/su9112121
초록/요약
This study examines how foreign investment can be driven by corporate social responsibility (CSR). By specifying the underlying mechanism of foreign investors' stock picking behavior, we argue that CSR can attract foreign investment. Given that CSR actions are taken to meet various needs of its stakeholders, the host firm can convey a reliable signal to foreign investors as well as the stakeholders. As such, foreign investments can be increased in the host firm. This idea is examined in a sample of Korean firms. We hypothesize that Korean firms, as host firms, will have more foreign investments, instantiated by foreign ownership, if they are more actively engaged in CSR. To test this argument, we collected a panel dataset of the Korea Economic Justice Institute (KEJI) Index between 2004 and 2009 to measure CSR performance of the firm. We estimated foreign ownership with respect to CSR performance. As a result, we found a positive effect of CSR performance on foreign ownership. Given the importance of foreign investment in host countries, this study opens an avenue that can account for foreign investors' stock-picking behavior.
more