Author: Miho Murashima

Research Article

Year: 2020, Volume 20 Number 4

Page: 1–16


This paper examines comprehensive and foundational insight into the long-term relationship between a firm’s corporate social responsibility (CSR)-related announcements, CSR visibility, and firm value in Japan. I employed an OLS regression analysis of Tobin’s q as a proxy of firm value with the original news dataset I collected from newspapers for CSR-related news announcements and CSR visibility. The regression results suggest, firstly, the positive relationship between a positive news announcement and firm value in the long-term, whereas the impact was found to be explained by CSR visibility in the longer-term. Secondly, the study showed that annual CSR visibility has a positive impact on the firm’s value, which supports the idea that firms can attract more long-term investors, financial capital, and political supports by strengthening CSR visibility. Managers and public relations officers may want to be aware that both a positive CSR-related news announcement and CSR visibility have a positive impact on firm value basically, whereas the impact is gradually occupied by CSR visibility, not the announcement. Accordingly, managers are also advised to emphasize not only on “what they do” but also “how to show” their CSR activities in their long-term strategy.

Keywords: corporate social responsibility (CSR), visibility, firm value, long-term analysis, legitimacy, Japan