제품시장에서 경쟁강도가 CSR 수준과 기업가치에 미치는 영향

Abstract

Purpose: As the competition in the product market grows, it becomes more difficult to obtain profit. Managerial risk would be higher if the level of competition is high in the product market so decision making process of manager that will produce competitive advantage would become much more important. In this case, manager can use CSR as one of the strategies to obtain competitive advantage. This study analyzes the managers’ behavior. Would managers decide to use different level of CSR in accordance with the degree of competitive strength in the product market and analyzes the effects of competitive strength in the product market on level of CSR and firm’s value. Research design, data, and methodology: To implement research, we selected sample companies registered in KRX from 2005 to 2014. There were total of 1,608 companies satisfied the criteria of this study. To test the hypothesis, we employed multiple regression models. In the models, dependent variable was firm’s value and independent were variables related with product market and CEO’s operating decisions. Results: First, the higher level of competitive strength, the higher the level of CSR. This result clearly shows that managers use CSR as one of the main strategies to obtain competitive advantage when the level of competitive strength is high. Second, as the level of CSR gets higher, the firm’s value also increases. This result indicate that the use of CSR increases the firm’s value. Third, low competitive strength makes the firm’s value high. This result indicates that high barrier to entry for other competitors helps existing companies to produce excess profits, which increases the firm’s value. Conclusions: Based on this study, the results mean that the decisions of the executive with a long-term perspective are important factors that are directly connected to the firm's value. In addition, management decisions with a long-term perspective can create synergistic effects on firm’s value. The results of this study suggest that managers should make ongoing and long-term decisions.