Disaggregate measures of corporate social performance and stock returns : a US perspective
This paper examines the relationship between corporate social responsibility (CSR) and stock returns in the United States using disaggregated indicators of CSR from the KLD database including employee relations, environment, community, corporate governance, diversity, human rights and product. Our r...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2013
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/51563 |
| _version_ | 1826127088490381312 |
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| author | Ang, Soon Heng Mak, Wai Hon Teo, Sidney Chee Hwee |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Ang, Soon Heng Mak, Wai Hon Teo, Sidney Chee Hwee |
| author_sort | Ang, Soon Heng |
| collection | NTU |
| description | This paper examines the relationship between corporate social responsibility (CSR) and stock returns in the United States using disaggregated indicators of CSR from the KLD database including employee relations, environment, community, corporate governance, diversity, human rights and product. Our results review negative relationships between the indicators and stock returns, except for product and human rights, although only employee relations, environment and product indicator coefficients are statistically significant at at least the 5% level. Statistical significances are also found at the industry level, although results vary across the industries. In the consumer services industry, corporate governance, product and environment indicators were significant at at least the 5% level when regressed against both 1-year and 2-year returns. For the utilities industry, employee relations and product indicators were significant while only the corporate governance indicator was significant for the finance industry. In general, CSR is verified to have a negative relationship with stock returns, which are rationalised by prior literature, which explain that high CSR firms having a lower risk and stock demand, although the strength and significance of the relationship vary across industrial sectors. |
| first_indexed | 2024-10-01T07:03:01Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/51563 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T07:03:01Z |
| publishDate | 2013 |
| record_format | dspace |
| spelling | ntu-10356/515632023-05-19T05:41:38Z Disaggregate measures of corporate social performance and stock returns : a US perspective Ang, Soon Heng Mak, Wai Hon Teo, Sidney Chee Hwee Nanyang Business School Chanika Charoenwong DRNTU::Business::General::Social aspects This paper examines the relationship between corporate social responsibility (CSR) and stock returns in the United States using disaggregated indicators of CSR from the KLD database including employee relations, environment, community, corporate governance, diversity, human rights and product. Our results review negative relationships between the indicators and stock returns, except for product and human rights, although only employee relations, environment and product indicator coefficients are statistically significant at at least the 5% level. Statistical significances are also found at the industry level, although results vary across the industries. In the consumer services industry, corporate governance, product and environment indicators were significant at at least the 5% level when regressed against both 1-year and 2-year returns. For the utilities industry, employee relations and product indicators were significant while only the corporate governance indicator was significant for the finance industry. In general, CSR is verified to have a negative relationship with stock returns, which are rationalised by prior literature, which explain that high CSR firms having a lower risk and stock demand, although the strength and significance of the relationship vary across industrial sectors. BUSINESS 2013-04-05T05:54:35Z 2013-04-05T05:54:35Z 2013 2013 Final Year Project (FYP) http://hdl.handle.net/10356/51563 en Nanyang Technological University 44 p. application/pdf |
| spellingShingle | DRNTU::Business::General::Social aspects Ang, Soon Heng Mak, Wai Hon Teo, Sidney Chee Hwee Disaggregate measures of corporate social performance and stock returns : a US perspective |
| title | Disaggregate measures of corporate social performance and stock returns : a US perspective |
| title_full | Disaggregate measures of corporate social performance and stock returns : a US perspective |
| title_fullStr | Disaggregate measures of corporate social performance and stock returns : a US perspective |
| title_full_unstemmed | Disaggregate measures of corporate social performance and stock returns : a US perspective |
| title_short | Disaggregate measures of corporate social performance and stock returns : a US perspective |
| title_sort | disaggregate measures of corporate social performance and stock returns a us perspective |
| topic | DRNTU::Business::General::Social aspects |
| url | http://hdl.handle.net/10356/51563 |
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