tag:blogger.com,1999:blog-21552987.post114679778546465951..comments2023-11-05T04:50:27.094-05:00Comments on Social Econ Blog: How do companies rebuild their "social capital"?Unknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-21552987.post-1146801953622276052006-05-05T00:05:00.000-04:002006-05-05T00:05:00.000-04:00Varun, I am not sure what the cheapest way to rebu...Varun, <BR/><BR/>I am not sure what the cheapest way to rebuild corporate social captial is, but I certainly agree that companies might choose charity to invest in it (particularly after its been damaged). <BR/><BR/>In terms of empirics, I recommend that you do this using firm fixed effects so you can focus on the change in giving behavior after the negative social capital shock. This approach changes the focus of the controls to things which might have simultaneously affected both the negative shock and the charity decision. <BR/><BR/>The other concern is that negative shocks may limit the firms ability to give to charity (even though it might want to) by shocking earnings/profits. You'll need to account for this.BWhttps://www.blogger.com/profile/15253628675169664406noreply@blogger.com