Do Announcements About Corporate Social Responsibility Create or Destroy Shareholder Wealth? Evidence from the UK

Journal of Business Ethics 106 (3):253-266 (2012)
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
Keywords CSR  Stakeholders  Investors  Firm value
Categories (categorize this paper)
DOI 10.1007/s10551-011-1004-9
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history Request removal from index
Download options
PhilPapers Archive

Upload a copy of this paper     Check publisher's policy on self-archival     Papers currently archived: 24,453
External links
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library
References found in this work BETA

View all 6 references / Add more references

Citations of this work BETA

Add more citations

Similar books and articles
Irina Soboleva (2007). Corporate Social Responsibility in Russia. International Corporate Responsibility Series 3:269-282.

Monthly downloads

Added to index


Total downloads

82 ( #59,150 of 1,925,265 )

Recent downloads (6 months)

3 ( #254,996 of 1,925,265 )

How can I increase my downloads?

My notes
Sign in to use this feature

Start a new thread
There  are no threads in this forum
Nothing in this forum yet.