Bonnie Buchanan

Professor Bonnie Buchanan

Head of the Department of Finance and Accounting
+44 (0)1483 686371
15 MS 02


Research interests

My teaching


Postgraduate research supervision

My publications


2018    Corporate Social Responsibility, Firm Value and Influential Institutional Ownership    (with Cathy Cao and Ben Chen). Journal of Corporate Finance. Cited on Columbia Law School’s Blog on Corporations and Capital Markets

2017     Uncertainty and Firm Dividend Policy – A Natural Experiment - with Eva Liljeblom, Cathy Cao and Susan Weihrich. Journal of Corporate Finance. Vol 42. pp. 179-197. Winner of Best Paper Award – Behavioral Finance Working Group Conference, London.


Buchanan, B., Cao, X and Chen, C (2018). Corporate Social Responsibility, Firm Value and Influential Institutional Ownership, Journal of Corporate Finance
View abstract View full publication
We examine how Corporate Social Responsibility (CSR), jointly with influential institutional ownership (IO), affects firm value around the 2008 global financial crisis. We find that the effect of CSR on firm value varies with the level of influential institutional ownership and depends upon economic conditions. Using difference-in-difference methods, we show that compared with non-CSR firms, CSR firms have higher firm values before the financial crisis but experience more loss in firm value during the crisis. Our findings suggest that the overall CSR effect depends on the relative dominance of two effects: conflict-resolution and overinvestment effect. In addition, we apply triple difference analysis and show that the relation between CSR and firm value depends upon the level of influential institutional ownership. Specifically, before the crisis, CSR positively affects the value of low institutional ownership firms and the effect is significantly weaker for firms with higher influential IO. During the crisis, the CSR-firm value relation is positive for high institutional ownership firms, suggesting that overinvestment concerns dominate when the crisis occurs. However, such a positive IO effect is not significant for CSR firms with high rollover risks. Our results are supported by a series of robustness tests.