EconPapers    
Economics at your fingertips  
 

Corporate Social Performance and Stock Returns: UK Evidence from Disaggregate Measures

Stephen Brammer, Chris Brooks and Stephen Pavelin

Financial Management, 2006, vol. 35, issue 3

Abstract: This study examines the relationship between corporate social performance and stock returns in the UK. Using a set of disaggregated social performance indicators for environment, employment and community activities, we are able more closely to evaluate the interactions between social and financial performance than would be the case for an aggregate measure. While scores on a composite social performance indicator are negatively related to stock returns, we find that the poor financial reward offered by such firms is attributable to their good social performance on the environment and, to a lesser extent, the community aspects. Interestingly, we find that considerable abnormal returns are available from holding a portfolio of the socially least desirable stocks. These relationships between social and financial performance can be in large part rationalized by multi-factor models for explaining the cross-sectional variation in returns, but not by industry effects.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (108) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Corporate Social Performance and Stock Returns: UK Evidence from Disaggregate Measures (2006) Downloads
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:fma:fmanag:brammerbrookspavelin06

Access Statistics for this article

Financial Management is currently edited by Bill Christie

More articles in Financial Management from Financial Management Association University of South Florida 4202 E. Fowler Ave. COBA #3331 Tampa, FL 33620. Contact information at EDIRC.
Bibliographic data for series maintained by Courtney Connors (). This e-mail address is bad, please contact .

 
Page updated 2019-08-03
Handle: RePEc:fma:fmanag:brammerbrookspavelin06