A Study of the Relationship between Corporate Social Responsibility Report and the Stock Market

An-An Chiu, Ling-Na Chen and Jiun-Chen Hu
Additional contact information
An-An Chiu: Department of International Business, College of Business, Feng Chia University, Taichung 40724, Taiwan
Ling-Na Chen: Department of Accounting and Information Technology, College of Management, National Chung-Cheng University, Chiayi 621301, Taiwan
Jiun-Chen Hu: Department of Accounting and Information Technology, College of Management, National Chung-Cheng University, Chiayi 621301, Taiwan

Sustainability, 2020, vol. 12, issue 21, 1-18

Abstract: This study mainly investigates the relationship between corporate social responsibility (CSR) reporting and the reaction in the stock market. Specifically, we utilize the data from Taiwanese stock market from 2012 to 2017 to examine whether the CSR report disclosed by the listed companies on the Taiwan Stock Exchange and the Taipei Exchange will cause abnormal returns on the short-, mid- or long-term horizon. The empirical results demonstrate that companies which disclose their CSR reports generate higher and more positive mid- to long-term abnormal returns than undisclosed companies. In addition to filling the gap of previous studies, this study also examines whether CSR reports mitigate the information asymmetry between management and stakeholders. Companies disclosing their CSR reports will boost the confidence of investors and lead to higher stock return valuations.

Keywords: corporate social responsibility report; CSR; ESG; abnormal return; event study (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/21/9200/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/21/9200/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:21:p:9200-:d:440456

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().