CSR commitment for superior firm performance: size and timing matter

This study examines the economic performance consequences of corporate donation announcements by Fortune 1000 firms following Hurricane Harvey in 2017. Building on the foundational concepts of stakeholder influence capacity and complementary assets, we find that donating firms, on average, achieve superior economic performance, indicated by positive cumulative abnormal returns. Crucially, this study identifies the size and timing of corporate donation commitments, organizational slack, and brand value, indicating that the market values responsible corporate donations and the strategic timing of such investments. Beyond novel model specification and new empirical evidence, this study advances theory by linking a core principle of corporate finance and corporate strategy to management inquiry. Despite the timing of investments being a crucial consideration for under uncertainty, this study is the first to corroborate that the timing of donations is essential for creating shared value for corporations and society.