E-viri
Recenzirano
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陳彩稚(Tsai-Jyh Chen); 許永明(Yung-Ming Shiu); 張智媛(Nina Chang)
Tai Da Guan Li Lun Cong, 12/2015, Letnik: 26, Številka: 1Journal Article
Using an event study and data of publicly traded firms in Taiwan from 2005 through 2010, we examine the impact of corporate social responsibility (CSR) on mitigating the declines in shareholder value when firms are disclosed of negative events, i.e., the risk management effect. Our results show that firms engaging in CSR activity have less stock price declines when negative news are disclosed. We also find that this effect is significant for safetyrelated negative events, but not for market-competition and integrity-related events. Furthermore, the empirical results show that CSR has a long-term effect on reducing stock volatility.
