Corporate social responsibility and stock prices after the financial crisis: The role of strategic CSR activities

This is a pre-print of an article published in the Journal of Business Ethics (2021). The final authenticated version is available online at DOI: doi.org/10.1007/s10551-021-04935-9

40 Pages Posted: 29 Apr 2020 Last revised: 21 Sep 2021

See all articles by Aneta Havlinova

Aneta Havlinova

Charles University in Prague - Faculty of Social Sciences

Jiri Kukacka

Charles University - Institute of Economic Studies; Czech Academy of Sciences - Institute of Information Theory and Automation

Date Written: August 25, 2021

Abstract

We analyze the relationship between corporate social responsibility and the stock market performance in the post-global financial crisis period. A new measure of social responsibility by Thomson Reuters, called the ESG Combined Score, is used. As a novel feature of our analysis, socially responsible engagement is divided into the strategic activities closely related to the examined companies' core business and the remaining secondary activities. The results of the fixed effects regression show a positive and statistically, as well as economically, significant impact of the strategic activities on the corporate stock market performance of companies. This impact is up to 103% higher compared to the secondary activities. The empirical results suggest that if companies aim to increase their share prices via the corporate social responsibility channel, they should strategically select their socially responsible initiatives.

Keywords: corporate social responsibility, strategic CSR, business ethics, corporate financial performance, fixed effects

JEL Classification: A13, C23, G11

Suggested Citation

Havlinova, Aneta and Kukacka, Jiri, Corporate social responsibility and stock prices after the financial crisis: The role of strategic CSR activities (August 25, 2021). This is a pre-print of an article published in the Journal of Business Ethics (2021). The final authenticated version is available online at DOI: doi.org/10.1007/s10551-021-04935-9, Available at SSRN: https://ssrn.com/abstract=3380881 or http://dx.doi.org/10.2139/ssrn.3380881

Aneta Havlinova (Contact Author)

Charles University in Prague - Faculty of Social Sciences ( email )

Opletalova St. 26
Prague, 11000
Czech Republic

Jiri Kukacka

Charles University - Institute of Economic Studies ( email )

Opletalova 26
Prague 1, CZ-11000
Czech Republic

HOME PAGE: http://ies.fsv.cuni.cz/en/staff/kukacka

Czech Academy of Sciences - Institute of Information Theory and Automation ( email )

Pod Vodarenskou vezi 4
Prague 8, CZ-18200
Czech Republic

HOME PAGE: http://www.utia.cas.cz/people/kukacka

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