Journal of Business Ethics

, Volume 140, Issue 2, pp 263–284 | Cite as

CSR Performance and the Value of Cash Holdings: International Evidence

  • Mohamed Arouri
  • Guillaume PijourletEmail author


Using a worldwide sample, we examine whether corporate social responsibility (CSR) performance has an impact on the value of cash holdings. We find that investors assign a higher value to cash held by firms that have a high CSR rating. This result is consistent with the idea that CSR policies are a means for managers to act in the shareholders’ interests by mitigating conflicts with stakeholders. Finally, we reveal that CSR performance has a positive impact on the value of cash holdings only for firms which operate in countries where shareholders are well protected from expropriation by managers and in countries where the institutional quality is high.


Corporate social responsibility Cash holdings Investor protection Value of cash 

JEL Classification

G32 G34 M14 



The authors would like to thank Sylvain Marsat, Benjamin Williams, and the “Valeur et RSE” chair for their support and helpful comments, the authors would also like to thank MSCI ESG Research and the Alter-Governance chair for providing the ESG data used in this research, the author is also grateful to Xavier Hollandts and Bertrand Valiorgue, founders of the Alter-Governance chair, for their help and support.


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Copyright information

© Springer Science+Business Media Dordrecht 2015

Authors and Affiliations

  1. 1.Université Clermont Auvergne, Université d’Auvergne, EA3849, CRCGMClermont-FerrandFrance

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