Corporate Social Responsibility and Stock Market Performance

In this study, we explore the stock market’s response to new information that a firm has been included in the Dow Jones Sustainability Index (DJSI) in Korea. In addition, we investigate which investor group contributes to the changes, if any significant increase in returns is found, after a firm’s incorporation into the DJSI. This study aims to identify which investors value corporate social responsibility (CSR) in the Korean stock market and examine whether the government-led campaigns for CSR have affected private sector investors, as well as those from the public sector. We find statistically significant abnormal returns for firms after their first listing in the index, implying that investors in Korean markets consider a firm’s inclusion in the DJSI as good news for the firm value. Using a unique dataset from the Korea Exchange (KRX) on investors, we classify investors into four groups: individual investors, public pension funds, other institutional investors, and foreign investors. Unlike prior studies that focus only on the existence of abnormal returns, we investigate the trading behavior of each investor group for such announcements. We find that it is mainly the buying pressure of public pension funds that generates abnormal returns. By contrast, we cannot find statistically significant results for the other investor groups. This result implies that the government-led campaign for CSR has only had limited effects in the Korean stock market, and that awareness of CSR in the private sector should be improved.

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Pengaruh Intellectual Capital, Corporate Social Responsibility Disclosure pada Kinerja Pasar (Studi Perusahaan Perbankan Di BEI)

E-Jurnal Akuntansi ◽

10.24843/eja.2019.v26.i01.p19 ◽

2019 ◽

pp. 510

Author(s):

Kadek Novia Suastyani ◽

I Gede Ary Wirajaya

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Intellectual Capital ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Market Performance ◽

Value Added ◽

Multiple Linear Regression Analysis ◽

Corporate Social Responsibility Disclosure ◽

Corporate Social

This study purpose to determine the effect of intellectual capital, corporate social responsibility disclosure on market performance. This research was conducted on banking companies listed on the Indonesia Stock Exchange in 2014-2016, namely as many as 43 companies. Samples were taken using non-probability sampling techniques with purposive sampling method. Obtained 23 companies with 69 total observations. The data analysis technique used is multiple linear regression analysis. The results of the analysis prove that companies that are able to process value added well will affect market performance. This study also found that the more items disclosure of CSR disclosure disclosed by the company will improve market performance. Keywords: intellectual capital, corporate social responsibility disclosure, market performance

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Corporate Social Responsibility Disclosure and Financial Performance: The Mediating Role of Financial Statement Comparability

Sustainability ◽

10.3390/su131810077 ◽

2021 ◽

Vol 13 (18) ◽

pp. 10077

Author(s):

Cao Thi Mien Thuy ◽

Nguyen Vinh Khuong ◽

Nguyen Thi Canh ◽

Nguyen Thanh Liem

Keyword(s):

Corporate Social Responsibility ◽

Stock Market ◽

Social Responsibility ◽

Financial Performance ◽

Financial Statement ◽

Estimation Methods ◽

Mediating Role ◽

Csr Disclosure ◽

Corporate Social

The aim of this study is to investigate the relationship between corporate social responsibility (CSR) disclosure and financial performance with the consideration of the mediating role of financial statement comparability (FSC) for a sample of Vietnamese listed firms. We used content analysis of the information related to the GRI Standards on annual reports in order to construct CSR disclosure score. We used a dataset of 1125 firm-year observations, covering 225 firms listed on Vietnam’s stock market in the period 2014–2018. Applying OLS and GMM estimation methods, Sobel test, and using different proxies of the mediator variable to increase the robustness, we obtained two remarkable conclusions. First, CSR disclosure has a positive impact on the financial performance of listed companies in Vietnam. Second, there is a complementary mediation effect of financial statement comparability in the above relationship. Our results suggest that it is necessary to develop a legal framework for the practice and disclosure of CSR as well as to apply the international accounting standards in the Vietnamese stock market.

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Effect of the Disclosure of Corporate Social Responsibility on Business Profitability. A Dimensional Analysis in the Spanish Stock Market

Sustainability ◽

10.3390/su11236732 ◽

2019 ◽

Vol 11 (23) ◽

pp. 6732 ◽

Cited By ~ 1

Author(s):

Escamilla-Solano ◽

Fernández-Portillo ◽

Paule-Vianez ◽

Plaza-Casado

Keyword(s):

Corporate Social Responsibility ◽

Stock Market ◽

Social Responsibility ◽

Interest Groups ◽

Corporate Strategy ◽

The Novel ◽

Business Profitability ◽

Sustainability Reports ◽

Corporate Social ◽

Spanish Stock Market

In recent decades, the novel fact of considering corporate social responsibility (CSR) as part of the corporate strategy of companies has resulted in interest groups demanding the disclosure of such information. Likewise, considering their importance of transparency and governance today, it is necessary to make an approximation on the study of the divulgation of CSR information on companies listed on the Spanish stock market. The aim of this work is to determine whether the disclosure of the measures taken by the companies on CSR influences business profitability. Applying PLS-SEM on the information extracted from the sustainability reports of 103 companies listed on the Spanish continuous market, it is found that the disclosure of CSR measures improves business profitability in its social and economic dimensions, with no effect being found between the disclosure CSR in its environmental dimension on business profitability.

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