Corporate social responsibility and shareholder's value
Subtitle: an event study analysis
By: Leonardo Becchetti, Rocco Ciciretti, and Iftekhar Hasan.
Contributors: Ciciretti, Rocco.; Hasan, Iftekhar.; Federal Reserve Bank of Atlanta.
Series: Working paper series / Federal Reserve Bank of Atlanta -- 2007-6; Working paper series (Federal Reserve Bank of Atlanta : Online) -- 2007-6.
Publisher: Federal Reserve Bank of Atlanta
Published: 2007
Place of publication: [Atlanta, Ga.]
Language: eng
Format: Electronic resource
Subjects: Social responsibility of business
Description: "Corporate social responsibility (CSR) is increasingly a core component of corporate strategy in the global economy.  In recent years its importance has become even greater, primarily because of the financial scandals, investors' losses, and reputational damage to listed companies.  While corporations are busy adopting and enhancing CSR practices, there is (beyond very few notable exceptions) no established empirical research on CSR's impact and relevance in the capital market.  This paper investigates this issue by tracing the market reaction to corporate entry and exit from the Domini 400 Social Index, recognized as a CSR benchmark, between 1990 and 2004.  The paper highlights two main findings: a significant upward trend in absolute value abnormal returns, irrespective of the type of event (for example, addition or deletion from the index), and a significant negative effect on abnormal returns after exit announcements from the Domini index.  The latter effect persists even after controlling for concurring financial distress shocks and stock market seasonality"--Federal Reserve Bank of Atlanta web site.
Notes: Title from PDF file as viewed on 5/14/2007.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.