Analysis shows that corporate financial performance improved in firms engaged in sport-based CSR during stock market crashes, suggesting a protective role against market risks.
This study investigates the role of sport-based corporate social responsibility (SCSR) in enhancing corporate financial performance (CFP) and mitigating market risks during the disruptive events of the COVID-19 pandemic. It specifically examines the insurance-like protection offered by SCSR, focusing on the relationship between these activities and firm value during systemic crises. The analysis includes 159 companies that were recipients of Taiwan's iSport Corporate Award, utilizing event study methods and regression modeling to evaluate the impact of SCSR on stock abnormal returns and CFP during two stock market crashes induced by COVID-19. The findings reveal that firms engaged in SCSR experienced smaller declines in stock prices compared to the broader market, confirming the value-protective effect of sports-related CSR. This research highlights the potential of SCSR to act as a safeguard for firm value during economic downturns, offering crucial insights into the strategic benefits of CSR investments.
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Lu et al. (2025) studied this question.
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