Research Handbook of Finance and Sustainability
Show Less

Research Handbook of Finance and Sustainability

Edited by Sabri Boubaker, Douglas Cumming and Duc K. Nguyen

The severe consequences of the global financial crisis 2008-2009 and numerous accounting frauds and financial scandals over the last fifteen years have let to calls for more ethical and responsible actions in all economic activities including consumption, investing, governance and regulation. Despite the fact that ethics in business and corporate social responsibility rules have been adopted in various countries, more efforts have to be devoted to motivate and empower more actors to integrate ethical behavior and rules in making business and managerial decisions. The Research Handbook of Finance and Sustainability will provide the readers but particularly investors, managers, and policymakers with comprehensive coverage of the issues at the crossroads of finance, ethics and sustainable development as well as proposed solutions, while focusing on three different levels: corporations, investment funds, and financial markets.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 4: Disentangling financial and ethical effects of corporate social responsibility on firm value

Sylvain Marsat, Guillaume Pijourlet and Benjamin Williams


Do investors prefer the stocks of firms that exhibit a high degree of CSR? The bulk of empirical studies use market data to assess the financial value of CSR and are not able to disentangle the financial and ethical effects of corporate social responsibility on firm value. Based on an experimental design, we show that subjects asked to assess stocks tend to overvalue, by one-third on average, the stock of a company with an AAA CSR rating compared to when they do not have access to this information. We controlled for the fact that the increase in fundamental value is the consequence of a purely ethical behavior and not a disguised financial one. Furthermore, a poor CSR rating does not seem to be penalized.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.