What drives investor response to CSR performance reports?
Recent research finds that investors' assessments of a stock's fundamental value are influenced by corporate social responsibility (CSR) performance through the affect-as-information heuristic. We extend prior research by examining two boundary conditions for the use of this heuristic: (i)...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Language: | English |
| Published: |
2022
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| Online Access: | https://hdl.handle.net/10356/161533 |
| _version_ | 1826125912053121024 |
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| author | Guiral, Andres Moon, Doocheol Tan, Hun-Tong Yu, Yao |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Guiral, Andres Moon, Doocheol Tan, Hun-Tong Yu, Yao |
| author_sort | Guiral, Andres |
| collection | NTU |
| description | Recent research finds that investors' assessments of a stock's fundamental value are influenced by corporate social responsibility (CSR) performance through the affect-as-information heuristic. We extend prior research by examining two boundary conditions for the use of this heuristic: (i) whether the CSR performance relates to activities that are integrated in a firm's core business practices (material CSR issues) or not (immaterial CSR issues), and (ii) whether the CSR performance is positive or negative. Employing an experimental method, we find that the affect-as-information heuristic applies only to immaterial CSR issues but not to material CSR issues, and only to positive but not negative CSR performance. Our findings suggest that investors likely use a heuristic approach to process immaterial and positive CSR issues, and a more deliberate and systematic approach to process material or negative CSR issues. Our study has both practical and theoretical implications.
We thank two anonymous reviewers, Brooke Elliott, Jeff Hales, Kevin Jackson, Philippe Krüeger, Michael Welker, and Brian White for helpful comments, as well as the Ministry of Education Academic Research Fund Tier 1 (RG58/17) and the United Overseas Bank Endowed Chair for financial support. |
| first_indexed | 2024-10-01T06:44:28Z |
| format | Journal Article |
| id | ntu-10356/161533 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T06:44:28Z |
| publishDate | 2022 |
| record_format | dspace |
| spelling | ntu-10356/1615332023-05-19T07:31:15Z What drives investor response to CSR performance reports? Guiral, Andres Moon, Doocheol Tan, Hun-Tong Yu, Yao Nanyang Business School Business::Finance Mood Information Recent research finds that investors' assessments of a stock's fundamental value are influenced by corporate social responsibility (CSR) performance through the affect-as-information heuristic. We extend prior research by examining two boundary conditions for the use of this heuristic: (i) whether the CSR performance relates to activities that are integrated in a firm's core business practices (material CSR issues) or not (immaterial CSR issues), and (ii) whether the CSR performance is positive or negative. Employing an experimental method, we find that the affect-as-information heuristic applies only to immaterial CSR issues but not to material CSR issues, and only to positive but not negative CSR performance. Our findings suggest that investors likely use a heuristic approach to process immaterial and positive CSR issues, and a more deliberate and systematic approach to process material or negative CSR issues. Our study has both practical and theoretical implications. We thank two anonymous reviewers, Brooke Elliott, Jeff Hales, Kevin Jackson, Philippe Krüeger, Michael Welker, and Brian White for helpful comments, as well as the Ministry of Education Academic Research Fund Tier 1 (RG58/17) and the United Overseas Bank Endowed Chair for financial support. Ministry of Education (MOE) Published version We thank two anonymous reviewers, Brooke Elliott, Jeff Hales, Kevin Jackson, Philippe Krüeger, Michael Welker, and Brian White for helpful comments, as well as the Ministry of Education Academic Research Fund Tier 1 (RG58/17) and the United Overseas Bank Endowed Chair for financial support. 2022-09-06T08:48:36Z 2022-09-06T08:48:36Z 2020 Journal Article Guiral, A., Moon, D., Tan, H. & Yu, Y. (2020). What drives investor response to CSR performance reports?. Contemporary Accounting Research, 37(1), 101-130. https://dx.doi.org/10.1111/1911-3846.12521 0823-9150 https://hdl.handle.net/10356/161533 10.1111/1911-3846.12521 2-s2.0-85073961166 1 37 101 130 en RG58/17 Contemporary Accounting Research © 2020 Canadian Academic Accounting Association (CAAA). All rights reserved. This paper was published by Wiley in Contemporary Accounting Research and is made available with permission of Canadian Academic Accounting Association (CAAA). application/pdf |
| spellingShingle | Business::Finance Mood Information Guiral, Andres Moon, Doocheol Tan, Hun-Tong Yu, Yao What drives investor response to CSR performance reports? |
| title | What drives investor response to CSR performance reports? |
| title_full | What drives investor response to CSR performance reports? |
| title_fullStr | What drives investor response to CSR performance reports? |
| title_full_unstemmed | What drives investor response to CSR performance reports? |
| title_short | What drives investor response to CSR performance reports? |
| title_sort | what drives investor response to csr performance reports |
| topic | Business::Finance Mood Information |
| url | https://hdl.handle.net/10356/161533 |
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