Does the Market Value Social Pillar?

21 Pages Posted: 3 Apr 2014

See all articles by Sylvain Marsat

Sylvain Marsat

Université d'Auvergne - Clermont 1

Benjamin Williams

Université d'Auvergne - Clermont 1 - Clermont Université

Date Written: January 2014

Abstract

The paper addresses the link between the social component of corporate social responsibility and market value of equities. Preceding results on this topic are, to our knowledge, still scarce and not really conclusive. Using a both rich and worldwide dataset, Asset4 – Thomson Reuters, we find that social expenses are clearly value-adding. Moreover, all the social subsets are positively related to a goodwill, even if those concerning human capital reveal to be more significant. Social expenses therefore prove to be a social investment, creating value for both social stakeholders and shareholders.

Keywords: Social pillar, Market value, Corporate social responsibility, Reputation, Human capital

JEL Classification: G11, G12

Suggested Citation

Marsat, Sylvain and Williams, Benjamin, Does the Market Value Social Pillar? (January 2014). Available at SSRN: https://ssrn.com/abstract=2419387 or http://dx.doi.org/10.2139/ssrn.2419387

Sylvain Marsat

Université d'Auvergne - Clermont 1 ( email )

49 Boulevard François Mitterrand
Clermont-Ferrand, Auvergne 63000
France

HOME PAGE: http://www.u-clermont1.fr/

Benjamin Williams (Contact Author)

Université d'Auvergne - Clermont 1 - Clermont Université ( email )

Clermont-Ferrand
France

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