Corporate Social Responsibility, Firm Value And Board Cultural Diversity: An Empirical Approach In The European Context

Abstract

The purpose of this study is to examine whether corporate social responsibility (CSR) commitment and board cultural diversity affect firm value in the European context. The theoretical framework suggests that firms with high CSR involvement and greater board cultural diversity are more likely to increase their value. An empirical study was conducted based on 2,250 observations of European firms over the period 2018-2022 based on market capitalization, environmental, social and governance (ESG) score and foreign directors. The result of the study showed that the company value is positively influenced by the engagement in CSR activities and the presence of foreign directors.