We model a capital market in which some proportion of investors get utility from owning firms that undertake spending on corporate social responsibility (CSR). We also assume different categories of firms: those with good CSR fundamentals and those with poor CSR fundamentals. We develop an...

From the optimal behavior of arbitrary number of consumer-investors who act as to maximize their life-time utility of consumption and leisure, this paper derives a continuous-time intertemporal asset pricing model with stochastic human capital, leisure, consumption, and investment opportunities....