Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
959853 | Journal of Financial Economics | 2015 | 26 Pages |
Abstract
Using a unique data set, I study how stock markets react to positive and negative events concerned with a firm׳s corporate social responsibility (CSR). I show that investors respond strongly negatively to negative events and weakly negatively to positive events. I then show that investors do value “offsetting CSR,” that is positive CSR news concerning firms with a history of poor stakeholder relations. In contrast, investors respond negatively to positive CSR news which is more likely to result from agency problems. Finally, I provide evidence that CSR news with stronger legal and economic information content generates a more pronounced investor reaction.
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Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Philipp Krüger,