The Impact of Corporate Social Responsibility Rating Announcements on European Stock Prices

33 Pages Posted: 12 May 2011

See all articles by Pierre CHOLLET


Université Montpellier I

Alexis Cellier

University Paris-Est Créteil (UPEC)

Date Written: May 1, 2011


Corporate Social Responsibility (CSR) ratings offer an opportunity to assess the financial market perception of Social Responsibility disentangling the different impacts of this multi-dimensional concept. We study the influence of Vigeo rating announcements (2004-2009) on short term European stock returns. The results show a positive effect over two days around the event. The detailed analysis reveals that the reaction varies according to the field. Human rights have a positive influence, Environment and Human resources a negative one and Community involvement a mixed one. Moreover, the aggregation level is also important since a confounding effect leads to non-significance of Corporate governance. These results suggest that the stock market rewards CSR. However, the relationship is complex and needs to be analyzed with care. Indeed, investors discriminate the various dimensions, search for the right information at different levels and do not necessarily interpret good and bad CSR practices in the same way.

Suggested Citation

CHOLLET, Pierre and Cellier, Alexis, The Impact of Corporate Social Responsibility Rating Announcements on European Stock Prices (May 1, 2011). International Conference of the French Finance Association (AFFI), May 11-13, 2011, Available at SSRN: or

Pierre CHOLLET (Contact Author)

Université Montpellier I ( email )

Avenue de la Mer Site Richter
163 Rue Auguste Broussonnet
Montpellier, Cedex 2 34090

Alexis Cellier

University Paris-Est Créteil (UPEC) ( email )

61 avenue du General de Gaulle
Creteil cedex, 94010

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