Edited by Sabri Boubaker, Douglas Cumming and Duc K. Nguyen
Chapter 4: Disentangling financial and ethical effects of corporate social responsibility on firm value
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.