This study examines whether the stock and bond prices of firms engaging in ‘corporate social responsibility’ (CSR) can benefit from insurance-like effects during occurrences of negative events. An event study methodology is adopted, using data from the Compustat and KLD datasets covering the years from 2000 to 2008. Our results provide general support for the evidence presented in Godfrey, Merrill and Hansen (2009), that in the face of negative events, engagement in CSR provides insurance-like effects on the stock prices of firms, with the effect also being found for bond prices. We find further evidence to show that the effect exists only when firms engage in CSR on a long-term and continuous basis, and that the effect decreases with the number of negative events.
Keywords: corporate social responsibility; insurance-like effects; risk Management; event study; negative events
학회소식
[2012년 제 4차] Does Engagement in Corporate Social Responsibility
작성자 : 관리자
조회수 : 898
게시일 :
2012-12-12
