Download This PaperImpact of Corporate Social Responsibility and its dimensions on North American Companies’ Stock Price
26 Pages Posted: 20 May 2020
Date Written: April 23, 2020
Abstract
Assessing the key drivers of their company’s performance has long been an important goal for firm managers, in their endeavours to increase stock prices. This report assesses the relationship between Corporate Social Responsibility and stock price. In our approach, we first assess the effect that changes in a composite measure of Corporate Social Responsibility have on stock price. Additionally, we dissect Corporate Social Responsibility into its different components and analyze the impact that changes in each component has on stock price. Different sets of OLS regressions are conducted, while mitigating endogeneity issues. With a high significance level, our findings indicate that an increase in the corporate social responsibility rating variable carries a positive impact on stock price. Furthermore, our results suggest that increases in community, diversity and employee commitments are also associated to an increase in stock price.
Keywords: Corporate Social Responsibility, Significance Level, OLS Regressions, Endogeneity
JEL Classification: C,M, O
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