Corporate social responsibility and firm value during the COVID-19 pandemic

Purpose: This study aims to investigate the impact of coronavirus disease 2019 (COVID-19) on the relationship between buyer firms' corporate social responsibility (CSR) activities toward business partners, such as suppliers, and firm value. The study further explores the role of ownership structure in shaping this relationship. Design/methodology/approach: The authors employ a difference-in-differences (DID) regression method to distinguish between the periods before and during the COVID-19 crisis. The authors utilize data from firms listed on the Korean stock market between 2013 and 2020. Findings: The results show that CSR activities for suppliers have a positive impact on the value of buyer firms. Furthermore, this positive relationship is amplified during the COVID-19 period. In addition, the study finds that the positive relationship is more prominent in samples with higher ownership by controlling shareholders or foreign investors. Originality/value: Overall, this study makes a valuable contribution to the existing literature by examining the positive effects of CSR activities on firm value and by shedding light on the role of ownership structure in influencing these effects. Additionally, the study emphasizes the significance of CSR activities for business partners in mitigating supply chain disruptions during the COVID-19 pandemic.