Clacher, Iain and Hagendorff, Jens  ORCID: https://orcid.org/0000-0002-3567-7826
2012.
Do announcements about corporate social responsibility create or destroy shareholder wealth? Evidence from the UK.
Journal of Business Ethics
106
(3)
, pp. 253-266.
10.1007/s10551-011-1004-9
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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.
| Item Type: | Article |
|---|---|
| Date Type: | Publication |
| Status: | Published |
| Schools: | Schools > Business (Including Economics) |
| Subjects: | H Social Sciences > HF Commerce H Social Sciences > HG Finance |
| Publisher: | Springer Verlag |
| ISSN: | 1573-0697 |
| Date of First Compliant Deposit: | 30 March 2016 |
| Last Modified: | 19 Nov 2024 16:15 |
| URI: | https://orca.cardiff.ac.uk/id/eprint/76283 |
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