Relationship between corporate social investment and the value of Brazilian companies

Abstract

This study aims to investigate the existence of the relationship between corporate social investments and value of companies listed on the São Paulo Stock Exchange (Bovespa) and which publish their social balance sheets in the Brazilian Institute of Social and Economic Analyses (IBASE), more specifically, identifying if companies that systematically invest in social responsibility have their value increased or reduced. The results found did no evidence that investments in social responsibility practices imply better or worse performance in the market value of companies. It was found a non-significant relationship between the control variable size of the company and the Tobin’s q in companies with corporate social investment. It was found a negative relationship between some sectors of the market and the value of the companies represented by Tobin's q. It was confirmed by this research the positive relationship between companies’ size and value of corporate social investment.