Using a sample of U.S. firms from 1991 to 2013, we examine the impact of corporate social responsibility (CSR) performance on corporate cash holdings and the value of cash holdings. We find that firms with high CSR rating tend to hold more cash than those with low CSR rating. We also find that the market value of excess cash reserves is higher for firms with high CSR rating. Finally, we find that excess cash investment by firms with low CSR rating results in lower operating performance. However, this negative effect of excess cash investment on operating performance is cancelled out if the firm has high CSR rating. Overall, our results indicate that CSR activities can improve firm value and support the conflict resolution view of CSR.