Social performance and firm risk: impact of the financial crisis

Kais Bouslah*, Lawrence Kryzanowski, Bouchra M'Zali

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

51 Citations (Scopus)
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This paper examines the impact of the recent financial crisis (2008–2009) on the relation between a firm’s risk and social performance (SP) using a sample of non-financial U.S. firms covering the period 1991–2012. We find that the relation between SP and risk is significantly different in the crisis period (post-crisis period) compared to the pre-crisis period. SP reduces volatility during the financial crisis. The risk reduction potential of SP is mainly due to the strengths component of SP. Since the relation of risk is stronger with SP strengths than SP concerns, this implies an asymmetric relation between these SP components and a firm’s risk. Specifically, strengths act as a risk reduction tool during an adverse economic environment.
Original languageEnglish
Pages (from-to)643-669
Number of pages27
JournalJournal of Business Ethics
Issue number3
Early online date11 Feb 2016
Publication statusPublished - May 2018


  • Financial crisis
  • Volatility
  • Idiosyncratic risk
  • Social performance
  • Strengths
  • Concerns


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