How and whether Corporate Social Performance Reduces Firm Risk? The Moderating Role of Corporate Governance

This study aims to explore the impact of corporate social performance (CSP) on firmrisk, and it proposes the moderating role of corporate governance (CG) among thisrelationship. Although the literature on corporate social responsibility is extensive,there is still a lack of knowledge about how CSP influences firm risks, as well as therole of CG in this relationship. To fill this gap, we have empirically tested the impactof CSP on a firm's risk through a longitudinal analysis on S&P 500 firms from 2015 to2019. Results show a significant negative relationship between CSP and firm risks,which is positively moderated by CG mechanisms. Our study contributes to theempirical research on corporate social responsibility and it provides insights for man-agerial decisions to encourage managers to pursue environmental and social practicesthat reduce the firm risk, with positive impacts on the firm value