Journal of Business Ethics 106 (3):253-266 (2012)

Abstract
This paper investigates the stock market reaction to the announcement that a firm has been included in the UK FTSE4Good index of socially responsible firms. We use the announcement of firm inclusion in the index to estimate the stock market reaction to a firm being classified as socially responsible. This is an important test of whether investors view the undertaking of socially responsible activities by firms as a value increasing or value decreasing initiative by management. We do not find strong evidence in favour of a positive market reaction. However, there is a large cross-sectional variation in the market reaction to this announcement. Investors appear to be reacting to this event and there are a number of firm characteristics that are well-established proxies for CSR that can explain the market reaction
Keywords CSR  Stakeholders  Investors  Firm value
Categories (categorize this paper)
ISBN(s)
DOI 10.1007/s10551-011-1004-9
Options
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy


Upload a copy of this paper     Check publisher's policy     Papers currently archived: 72,577
Through your library

References found in this work BETA

View all 8 references / Add more references

Citations of this work BETA

Add more citations

Similar books and articles

Corporate Social Investments: Do They Pay? [REVIEW]G. Steven McMillan - 1996 - Journal of Business Ethics 15 (3):309-314.
Corporate Social Responsibility in Russia: Peculiarities and Problems.Irina Soboleva - 2007 - International Corporate Responsibility Series 3:269-282.
On the Corporate Social Responsibility Perceptions of Equity Analysts.Christian Fieseler - 2011 - Business Ethics, the Environment and Responsibility 20 (2):131-147.
Corporate Social Responsibility in Russia: Peculiarities and Problems.Irina Soboleva - 2007 - International Corporate Responsibility Series 3:269-282.

Analytics

Added to PP index
2011-08-30

Total views
100 ( #119,875 of 2,533,579 )

Recent downloads (6 months)
1 ( #390,861 of 2,533,579 )

How can I increase my downloads?

Downloads

My notes