Stakeholder Salience, Positive Csr News and the Market Value of Banks

Forthcoming in REFC – Spanish Journal of Finance and Accounting

36 Pages Posted: 24 Oct 2019

See all articles by Andrea Perez

Andrea Perez

University of Cantabria

Carlos Lopez-Gutiérrez

University of Cantabria

Mª del Mar García de los Salmones

University of Cantabria

Paula San-Martin

University of Cantabria

Date Written: October 11, 2019

Abstract

This research explores the effects that media coverage of corporate social responsibility (CSR) news related to investor, customer, employee and community issues has on the market value of Spanish banks, measured as the impact generated in abnormal returns for these companies. We use an event study with a sample of 190 positive CSR articles published online between 2015 and 2018 in the most important Spanish business newspaper according to its diffusion rate. The findings demonstrate that positive CSR news related to investor, customer, employee and community issues generates positive abnormal returns for listed banks. In the [-1,+1] window, positive investor news has notably larger effects on the abnormal returns for these companies than positive news related to customer, employee and community issues, which have similar effects.

Keywords: corporate social responsibility, market value, media, stakeholders, salience

JEL Classification: M14, G14

Suggested Citation

Perez, Andrea and López-Gutiérrez, Carlos and García de los Salmones, Mª del Mar and San-Martin, Paula, Stakeholder Salience, Positive Csr News and the Market Value of Banks (October 11, 2019). Forthcoming in REFC – Spanish Journal of Finance and Accounting. Available at SSRN: https://ssrn.com/abstract=3470142

Andrea Perez (Contact Author)

University of Cantabria ( email )

Avda. Los Castros, s/n
Santander 39005
Spain

Carlos López-Gutiérrez

University of Cantabria ( email )

Avda. Los Castros, s/n
39005 - Santander (Cantabria)
Spain
+34 942 202007 (Phone)
+34 942 201890 (Fax)

Mª del Mar García de los Salmones

University of Cantabria ( email )

Avda. Los Castros, s/n
Santander 39005
Spain

Paula San-Martin

University of Cantabria ( email )

Avda. Los Castros, s/n
Santander 39005
Spain

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