Corporate goodness and shareholder wealth.

• Autores: Philipp Krüger
• Localización: Journal of financial economics, ISSN 0304-405X, Vol. 115, Nº. 2, 2015, págs. 304-329
• Idioma: inglés
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• Resumen

  • Using a unique data set, I study how stock markets react to positive and negative events concerned with a firm׳s corporate social responsibility (CSR). I show that investors respond strongly negatively to negative events and weakly negatively to positive events. I then show that investors do value “offsetting CSR,” that is positive CSR news concerning firms with a history of poor stakeholder relations. In contrast, investors respond negatively to positive CSR news which is more likely to result from agency problems. Finally, I provide evidence that CSR news with stronger legal and economic information content generates a more pronounced investor reaction.