Corporate Social Responsibility and Financial Performance: An Event Study Following a CSR Announcement (Responsabilité Sociale et Performance Financière: Une Étude D'Événement à L'Annonce D'un Classement RSE)

24 Pages Posted: 28 May 2008 Last revised: 28 Nov 2014

Isabelle Ducassy

Euromed Management

Karine Jeannicot

Euromed Management

Abstract

Corporate social responsibility (CSR) disclosure has now become a key strategy issue for companies, thus raising the question of how CSR information impacts investor behaviour. This paper sets out to examine this topic using social reporting rankings generated by an independent body, the CFIE (Centre Français d'Information des Entreprises). An event study analysis is carried out to measure abnormal returns over the years 2005, 2006 and 2007 for a sample of approximately 50 companies, primarily from the CAC40. The results reveal a market response to the publication of these rankings. The most significant impact is observed, not for high-ranking companies, but for those having risen or regressed the most in rank since the previous year. This illustrates the importance that investors attribute to companies' CSR dynamics.

Notes: Downloadable document is in French.

Keywords: Corporate Social Responsibility, NRE law, social performance, financial performance, étude d'événement, volet social, environnemental et sociétal

JEL Classification: G14, D21, L21, M14

Suggested Citation

Ducassy, Isabelle and Jeannicot, Karine, Corporate Social Responsibility and Financial Performance: An Event Study Following a CSR Announcement (Responsabilité Sociale et Performance Financière: Une Étude D'Événement à L'Annonce D'un Classement RSE). Euromed Marseille Working Paper No. 03-08. Available at SSRN: https://ssrn.com/abstract=1135245

Isabelle Ducassy (Contact Author)

Euromed Management ( email )

Domaine de Luminy
BP 921 13288 Marseille Cedex 9, 13288
France

Karine Jeannicot

Euromed Management ( email )

Domaine de Luminy
BP 921 13288 Marseille Cedex 9, 13288
France

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