Do Announcements About Corporate Social Responsibility Create or Destroy Shareholder Wealth? Evidence from the UK

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

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

Links

PhilArchive



    Upload a copy of this work     Papers currently archived: 90,616

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

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
2011-08-30

Downloads
104 (#155,340)

6 months
3 (#447,120)

Historical graph of downloads
How can I increase my downloads?