We assess whether social capital, captured by CSR, is an effective hedge against risks arising from political and industry-wide uncertainty. Social capital significantly reduces stock return volatility during political uncertainty, but not cash flow volatility. Meanwhile, CSR is also an...

Firms that follow excessive payout policies (over-payers) are higher on the financial distress spectrum and have lower survival rates than under-payers. In addition, over-payers endure lower future sales and asset growth than under-payers and experience negative abnormal returns in the bond and...