Corporate social responsibility and the market performance of Brazilian companies

Larissa Degenhart, Mikaéli da Silva Giordani, Ismael Alan Halberstadt, Cristiano Sausen Soares, Vinicius Costa da Silva Zonatto


Purpose – This research aimed to analyze the relationship between Corporate Social Responsibility (CSR) and the market performance of Brazilian companies.

Design/methodology/approach – A descriptive, documentary and quantitative research was carried out using panel data regression. The analysis period covered 2010 to 2018 and the sample comprised 41 companies.

Findings – The results revealed that investments in external CSR and the fact that companies are listed on the ISE index increase their market value. The CSR information of Brazilian companies aimed at investments made for a society helps to increase market performance.

Research limitations/implications – It should be noted that the results cannot be generalized for all Brazilian companies. This research contributes to the accounting and CSR literature, by analyzing the benefits of CSR on companies' market performance.

Practical implications – The findings assist investors in the decision-making process, as companies that have CSR actions have positive impacts on their value, operational efficiency and the ability to generate financial performance.

Social implications – The results have social implications, as they reinforce the importance of companies investing in CSR, which can improve their market value and benefit society with practices aimed at social well-being.

Originality/value – CSR was analyzed in several aspects in the accounting literature. However, the focus of the relationship between CSR and specifically market performance has been little explored in Brazil, a fact that denotes research value.


Responsabilidade Social Corporativa, Desempenho de mercado, Empresas brasileiras.

Full Text:



Assaf Neto, A. (2012). Finanças Corporativas e Valor. 6. ed. São Paulo: Atlas.

Bae, K. H., El Ghoul, S., Guedhami, O., Kwok, C. C., & Zheng, Y. (2019). Does corporate social responsibility reduce the costs of high leverage? Evidence from capital structure and product market interactions. Journal of Banking & Finance, 100, 135-150.

Bodie, Z., Kane, A., & Marcus, A. J. (2015). Investimentos.10. ed. Porto Alegre: AMGH.

Brooks, C., & Oikonomou, I. (2018). The effects of environmental, social and governance disclosures and performance on firm value: A review of the literature in accounting and finance. The British Accounting Review, 50(1), 1-15.

Cahan, S. F., De Villiers, C., Jeter, D. C., Naiker, V., & Van Staden, C. J. (2016). Are CSR disclosures value relevant? Cross-country evidence. European Accounting Review, 25(3), 579-611.

Choi, J.-S., Kwak, Y.-M., & Choe, C. (2010). Corporate social responsibility and corporate financial performance: Evidence from Korea. Australian Journal of Management, 35(3), 291-311.

Costa, I. L. de S., Correia, T. de S., Paulo, E., & Lucena, W. G. L. (2018). Impacto do disclosure voluntário: valor da empresa e informações socioambientais nas companhias abertas. Revista Contabilidade, Gestão e Governança, 21(2), 271-287.

Dhaliwal, D. S., Radhakrishnan, S., Tsang, A., & Yang, Y. G. (2012). Nonfinancial disclosure and analyst forecast accuracy: International evidence on corporate social responsibility disclosure. The Accounting Review, 87(3), 723-759.

Esteban-Sanchez, P., Cuesta-Gonzalez, M. de La., & Paredes-Gazquez, J. D. (2017). Corporate social performance and its relation with corporate financial performance: international evidence in the banking industry. Journal of Cleaner Production, 162, 1102-1110.

Feng, Z.-Y., Chen, C. R., & Tseng, Y.-J. (2018). Do capital markets value corporate social responsibility? Evidence from seasoned equity offerings. Journal of Banking & Finance, 94, 54-74.

Freeman, R. E. (1984). Strategic Management: A stakeholder approach. Cambridge university press, 1.

Freguete, L. M., Nossa, V., & Funchal, B. (2015). Responsabilidade social corporativa e desempenho financeiro das empresas brasileiras na crise de 2008. Revista de Administração Contemporânea, 19(2), 232-248.

Gao, L., & Zhang, J. H. (2015). Firms’ earnings smoothing, corporate social responsibility, and valuation. Journal of Corporate Finance, 32, 108-127.

Han, W., Zhuangxiong, Y., & Jie, L. (2018). Corporate social responsibility, product market competition, and product market performance. International Review of Economics & Finance, 56, 75-91.

Huang, X. B., & Watson, L. (2015). Corporate social responsibility research in accounting. Journal of Accounting Literature, 34, 1-16.

IBASE – Instituto Brasileiro de Análises Sociais e Econômicas. Balanço Social. Disponível em: . Acesso em: 01 Ago. 2019.

Ioannou, I., & Serafeim, G. (2017). The consequences of mandatory corporate sustainability reporting. Harvard Business School Research Working Paper, (11-100), 1-15.

Jensen, M. C., & Meckling, W. H. (1976). Theory of firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.

Jo, H., & Harjoto, M. A. (2011). Corporate governance and firm value: The impact of corporate social responsibility. Journal of Business Ethics, 103(3), 351-383.

Kang, K. H., Lee, S., & Huh, C. (2010). Impacts of positive and negative corporate social responsibility activities on company performance in the hospitality industry. International Journal of Hospitality Management, 29(1), 72-82.

Kao, E. H., Yeh, C. C., Wang, L. H., & Fung, H. G. (2018). The relationship between CSR and performance: Evidence in China. Pacific-Basin Finance Journal, 51, 155-170.

Kim, M. C., & Kim, Y. H. (2014). Corporate social responsibility and shareholder value of restaurant firms. International Journal of Hospitality Management, 40, 120-129.

Kim, K. H., Kim, M., & Qian, C. (2018). Effects of corporate social responsibility on corporate financial performance: a competitive-action perspective. Journal of Management, 44(3), 1097-1118.

Kwon, H.-B., & Lee, J. (2019). Exploring the differential impact of environmental sustainability, operational efficiency, and corporate reputation on market valuation in high-tech-oriented firms. International Journal of Production Economics, 211, 1-14.

Lee, S., Singal, M., & Kang, K. H. (2013). The corporate social responsibility–financial performance link in the US restaurant industry: do economic conditions matter?. International Journal of Hospitality Management, 32, 2-10.

Lin, L., Hung, P. H., Chou, D. W., & Lai, C. W. (2019). Financial performance and corporate social responsibility: Empirical evidence from Taiwan. Asia Pacific Management Review, 24(1), 61-71.

Mallin, C., Faraga, H., & Ow-Yong, K. (2014). Corporate social responsibility and financial performance in Islamic banks. Journal of Economic Behavior & Organization, 103, 21-38.

Maqbool, S., & Zameer, M. N. (2018). Corporate social responsibility and financial performance: An empirical analysis of Indian banks. Future Business Journal, 4(1), 84-93.

Nossa, V., Cezar, J. F., Silva Junior, A. da, Baptista, É. C. S., & Nossa, S. N. (2009). A relação entre o retorno anormal e a responsabilidade social e ambiental: um estudo empírico na bovespa no período de 1999 a 2006. Brazilian Business Review, 6(2), 121-136.

Nekhili, M., Nagati, H., Chtioui, T., & Rebolledo, C. (2017). Corporate social responsibility disclosure and market value: Family versus nonfamily firms. Journal of Business Research, 77, 41-52.

Peria, M. L.; Santos, D. F. L.; Montoro, S. B. (2020). A Responsabilidade Social Corporativa e o Desempenho Financeiro e Econômico de Empresas Estabelecidas no Brasil. Desafio Online, 8(1), 91-114.

Rezaee, Z., Dou, H., & Zhang, H. (2019). Corporate social responsibility and earnings quality: Evidence from China. Global Finance Journal, in press.

Rodriguez-Fernandez, M. (2016). Social responsibility and financial performance: The role of good corporate governance. Business Research Quarterly, 19(2), 137-151.

Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Lamb, R. (2015). Administração Financeira: Versão brasileira de Corporate Finance. 10. ed. Porto Alegre: AMGH.

Suganthi, L. (2019). Examining the relationship between corporate social responsibility, performance, employees’ pro-environmental behavior at work with green practices as mediator. Journal of Cleaner Production, 232(20), 739-750.

Soares, R. A., Abreu, M. C. S. de., Marinho, P. de B. L. P., & Rebouças, S. M. D. P. (2018). Determinantes Institucionais do Desempenho Social Corporativo: Comparação entre Empresas no Brasil e Canada. Revista de Gestão Social e Ambiental, 12(3), 39-57.

Tobin, J. (1969). A general equilibrium approach to monetary theory. Journal of Money, Credit and Banking, 1(1), 15-29.

Yoon, B., & Chung, Y. (2018). The effects of corporate social responsibility on firm performance: A stakeholder approach. Journal of Hospitality and Tourism Management, 37, 89-96.

Wang, W. K., Lu, W. M., Kweh, Q. L., & Lai, H. W. (2014). Does corporate social responsibility influence the corporate performance of the U.S. telecommunications industry? Telecommunications Policy, 38(7), 580-591.

Wang, Z., & Sarkis, J. (2017). Corporate social responsibility governance, outcomes, and financial performance. Journal of Cleaner Production, 162, 1607-1616.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.






Revista de Administração da UFSM. Brazilian Journal of Management

Universidade Federal de Santa Maria, Santa Maria, Rio Grande do Sul, Brasil, eISSN 1983-4659