The effects of social responsibility on company value: a real options perspective of Taiwan companies

Figures & data

Table 1. Descriptive statistics and correlation of the variables for CSR companies.

	Mean	STD	ROP	RD	AV	CS	LEV	BETA	SKEW	NUM	CSR
ROP	0.69	0.27	1.00
RD	0.02	0.04	−0.20	1.00
AV	25.65	1.56	0.26	−0.22	1.00
CS	0.27	0.20	−0.12	−0.02	−0.18	1.00
LEV	0.55	0.22	0.39	−0.49	0.51	−0.41	1.00
BETA	0.65	0.54	0.12	0.15	0.16	−0.33	0.10	1.00
SKEW	0.15	0.77	0.04	0.00	−0.04	0.00	0.00	−0.01	1.00
NUM	4.79	3.16	0.05	0.08	0.31	−0.09	−0.02	0.46	−0.03	1.00
CSR	1.00	0.00	–	–	–	–	–	–	–	–	–

Notes:

1. The standard deviation of CSR is 0. We hence cannot calculate the correlations between CSR and other variables.

2. The definitions of the variables in the table are as follows.

1. ROP measures the proportion of a company’s market value due to real options.

2. RD is defined as the ratio of research and development expenses to sales.

3. AV means company size and is estimated by the book value of assets.

4. CS is fixed asset ratio and the ratio of the value of property, plant, and equipment to total assets.

5. LEV is the ratio of debt with cost to total assets.

6. BETA is the coefficient of systematic risk.

7. SKEW measures the skewness of stock returns. Source: Own calculation based on Taiwan Economic Journal (TEJ) database and Taiwan's Common Wealth Magazine.

Table 2. Descriptive statistics and correlation of the variables for non-CSR companies.

	Mean	STD	ROP	RD	AV	CS	LEV	BETA	SKEW	NUM	CSR
ROP	0.63	0.50	1.00
RD	0.02	0.03	−0.03	1.00
AV	24.06	1.27	0.12	−0.12	1.00
CS	0.26	0.17	−0.02	0.01	−0.16	1.00
LEV	0.52	0.18	0.20	−0.26	0.48	−0.37	1.00
BETA	0.88	0.42	0.06	0.15	0.17	0.03	−0.03	1.00
SKEW	0.17	0.83	0.03	0.00	−0.01	0.02	−0.01	−0.07	1.00
NUM	0.00	0.00	–	–	–	–	–	–	–	1.00
CSR	0.00	0.00	–	–	–	–	–	–	–	–	1.00

Notes: The standard deviation of NUM and CSR are 0. We hence cannot calculate the correlation coefficients of NUM and CSR. Source: Own calculation based on TEJ database.

Table 3. Panel data regression—the fixed effect model.

	(1)	(2)
Constant	0.015 (0.173)	−0.026 (−0.300)
CSR	0.036*** (2.967)	–
NUM	–	0.004* (1.915)
RD	0.183 (1.142)	0.221 (1.391)
BETA	0.067*** (6.580)	0.059*** (6.049)
AV	0.009** (2.336)	0.011*** (2.898)
CS	0.159*** (5.729)	0.162*** (5.835)
LEV	0.570*** (18.125)	0.568*** (17.967)
SKEW	0.019*** (3.412)	0.019*** (3.381)
R-squared	0.063	0.063
Adj. R-squared	0.062	0.062
F-statistic	89.075***	88.293***

Notes: The symbols *** and * denote significance at the 1% and 10% levels, respectively. The t-statistics is reported in parentheses. Source: Own calculation based on TEJ database and Taiwan's Common Wealth Magazine.

Table 4. Effects of CSR for the first and last 3 years.

	2007–2009	2014–2016
Constant	0.007 (0.028)	−0.022 (−0.182)
CSR	0.039 (1.086)	0.031* (1.896)
RD	0.273 (0.595)	0.184 (0.885)
BETA	0.055* (1.661)	0.026** (2.037)
AV	0.019* (1.702)	0.005 (1.007)
CS	−0.037 (−0.473)	0.184*** (4.775)
LEV	0.321*** (3.612)	0.771*** (18.013)
SKEW	0.063*** (3.657)	−0.002 (−0.271)
R-squared	0.023	0.150
Adj. R-squared	0.020	0.148
F-statistic	8.287***	73.333***

Notes: The symbols ***, **, and * denote significance at the 1%, 5%, and 10% levels, respectively. The t-statistics is reported in parentheses. Source: Own calculation based on TEJ database and Taiwan's Common Wealth Magazine.

Table 5. The effects of NUM for the first and last 3 years.

	2007–2009	2014–2016
Constant	−0.041 (−0.336)	−0.022 (−0.090)
NUM	0.004 (1.548)	0.005 (0.821)
RD	0.206 (0.993)	0.308 (0.676)
BETA	0.021* (1.624)	0.044 (1.436)
AV	0.006 (1.211)	0.021* (1.880)
CS	0.187*** (4.846)	−0.037 (−0.478)
LEV	0.770*** (17.958)	0.320*** (3.581)
SKEW	−0.002 (−0.290)	0.063*** (3.665)
R-squared	0.149	0.023
Adj. R-squared	0.147	0.020
F-statistic	73.132***	8.214***

Notes: The symbols *** and * denote significance at the 1% and 10% levels, respectively. The t-statistics is reported in parentheses. Source: Own calculation based on TEJ database and Taiwan's Common Wealth Magazine.