Corporate social irresponsibility and portfolio performance: a cross-national study

Harjoto, Maretno A., Hoepner, Andreas G. F. and Li, Qian ORCID: https://orcid.org/0000-0003-0827-2134 2021. Corporate social irresponsibility and portfolio performance: a cross-national study. Journal of International Financial Markets, Institutions and Money 70 , 101274. 10.1016/j.intfin.2020.101274

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Abstract

This study examines the impact of reputational risk, measured by corporate social irresponsibility (CSI) ratings, on shareholder abnormal returns. Based on 7368 non-financial companies from 42 countries during 2007–2017, we find that long-short portfolios (buying no reputation risk and selling high reputation risk portfolios) earn significantly positive abnormal returns. The cross-national results indicate that the long-short portfolio returns are more pronounced (i) in the emerging market segment than in the developed market segment, (ii) in civil law jurisdictions than in their common law peers, (iii) within nations with higher confidence in corporations and, (iv) within nations with higher institutional trust.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	Elsevier
ISSN:	1042-4431
Date of First Compliant Deposit:	19 November 2020
Date of Acceptance:	18 November 2020
Last Modified:	07 Nov 2023 06:24
URI:	https://orca.cardiff.ac.uk/id/eprint/136468

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