Market Effect of Listed Corporate Social Responsibility Report Disclosure—Based on Combined Test of the Double Events
Author(s)
Zhenyu Ji
ABSTRACT
CCTV Financial 50 Index1, the first stock index released by China’s state media, was launched on June 6, 2012. As one of the elements looked at by the index to selected 50 best performance listed companies, social responsibility becomes a hot spot of social attention. This paper investigates the market effect of listed companies in A-share market which disclosed social responsibility report in 2010. Results of the study show that the information in Corporate Social Responsibility (CSR) Report has no significant market effect as the disclosure of CSR Report. However, when the White Book of Chinese CSR Report is released, the information in CSR Report generates significant market effect. Moreover, the higher the quality of CSR Report disclosed, the more significant the market effect. In conclusion, the White Book of Chinese CSR Report has a reinforcing action on the information in CSR Report.
CCTV Financial 50 Index1, the first stock index released by China’s state media, was launched on June 6, 2012. As one of the elements looked at by the index to selected 50 best performance listed companies, social responsibility becomes a hot spot of social attention. This paper investigates the market effect of listed companies in A-share market which disclosed social responsibility report in 2010. Results of the study show that the information in Corporate Social Responsibility (CSR) Report has no significant market effect as the disclosure of CSR Report. However, when the White Book of Chinese CSR Report is released, the information in CSR Report generates significant market effect. Moreover, the higher the quality of CSR Report disclosed, the more significant the market effect. In conclusion, the White Book of Chinese CSR Report has a reinforcing action on the information in CSR Report.
Cite this paper
Ji, Z. (2015) Market Effect of Listed Corporate Social Responsibility Report Disclosure—Based on Combined Test of the Double Events. Open Journal of Business and Management, 3, 163-176. doi: 10.4236/ojbm.2015.32016.
Ji, Z. (2015) Market Effect of Listed Corporate Social Responsibility Report Disclosure—Based on Combined Test of the Double Events. Open Journal of Business and Management, 3, 163-176. doi: 10.4236/ojbm.2015.32016.
References
[1] Ingram, R.W. (1978) An Investigation of the Information Content of Social Responsibility Disclosures. Journal of Accounting Research, 16, 270-285.
http://dx.doi.org/10.2307/2490567 [2] Margolis, J. and Walsh, J. (2003) Misery Loves Companies: Rethinking Social Initiatives by Business. Administrative Science Quarterly, 48, 268-305.
http://dx.doi.org/10.2307/3556659 [3] McWilliams, A., Siegel, D.S. and Wright, P.M. (2006) Corporate Social Responsibility: Strategic Implications. Journal of Management Studies, 43, 1-18.
http://dx.doi.org/10.1111/j.1467-6486.2006.00580.x [4] Waddock, S. and Graves, S. (1997) The Corporate Social Performance—Financial performance Link. Strategic Management Journal, 18, 303-319.
http://dx.doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G [5] Hillman, A. and Keim, G. (2001) Shareholder Value, Stakeholder Management, and Social Issues: What’s the Bottom Line? Strategic Management Journal, 22,125-139.
http://dx.doi.org/10.1002/1097-0266(200101)22:2<125::AID-SMJ150>3.0.CO;2-H [6] Verschoor, C. and Murphy, E. (2002) The Financial Performance of Large US Firms and Those with Global Prominence: How Do the Best Corporate Citizens Rate? Business and Society Review, 107, 371-380.
http://dx.doi.org/10.1111/1467-8594.00141 [7] Hull, C.E. and Rothenberg, S. (2008) Firm Performance: The Interactions of Corporate Social Performance with Innovation and Industry Differentiation. Strategic Management Journal, 29, 781-789.
http://dx.doi.org/10.1002/smj.675 [8] Anderson, J. and Frankle, A. (1980) Voluntary Social Reporting: An Iso-Beta Portfolio Analysis. The Accounting Review, 7, 467-479. [9] Hill, R.P., Ainscough, T., Shank, T. and Manullang, D. (2007) Corporate Social Responsibility and Socially Responsible Investing: A Global Perspective. Journal of Business Ethics, 70, 165-174.
http://dx.doi.org/10.1007/s10551-006-9103-8 [10] Cheung, Y.L., Tan, W., Ahn, H.J. and Zhang, Z. (2010) Does Corporate Social Responsibility Matter in Asian Emerging Markets? Journal of Business Ethics, 92, 401-413.
http://dx.doi.org/10.1007/s10551-009-0164-3 [11] Cheung, Y., Jiang, K. and Tan, W. (2012) “Doing-Good” and “Doing-Well” in Chinese Publicly Listed Firms. China Economic Review, 23, 776-785.
http://dx.doi.org/10.1016/j.chieco.2012.03.013 [12] Chen, Y.-Q. and Ma, L.-L. (2005) Empirical Analysis on Market Reaction of the Corporate Social Responsibility Information. Journal of Accounting Research, 11, 76-81. [13] Wen, S.-B. and Fang, W. (2008) The Empirical Study on Relationship between Corporate Social Responsibility and Financial Performance—Panel Data Analysis of Stakeholder Perspective. Chinese Industrial Economy, 10, 150-160. [14] Li, Z. (2006) Empirical Research on Correlation between Corporate Social Responsibility and Corporate Value—From Shanghai Stock Market Listed Companies. Chinese Industrial Economy, 2, 77-83. [15] Song, X.-Z. and Gong, M.-X. (2007) The Quality and Decision Value Evaluation of the Social Responsibility— Analysis of the Accounting Reports of Listed Companies. Journal of Accounting Research, 2, 37-43. [16] Shen, H.-T. and Yang, Y. (2008) Research on Correlation between Corporate Social Responsibility and Corporate Value—The Empirical Evidence from Chinese Listed Companies. Contemporary Finance & Economics, 3, 150-160. [17] Zhu, S. (2011) Corporate Social Responsibility, Market Assessment and the Earnings Information Content. Journal of Accounting Research, 11, 27-34. [18] Jiang, Y.-J., Xu, Y., Liu, D.-G. and Zhou, M.-H. (2011) Market Effect on Corporate Social Responsibility Information—Based on the Event Study of Disclosure of Chinese Listed Companies’ Social Responsibility Report. Research on Economics and Management, 8, 123-128. [19] Zhai, H.-Y. (2012) Research on the Influence of the Quality of Corporate Social Responsibility Disclosed on Investors Trade Behavior—Based on the Empirical Analysis of Listed Companies in China. Economic Survey, 1, 82-86. [20] Shen, H.-T. and Feng, J. (2012) Public Opinion, Government Regulation and Corporate Environmental Information Disclosure. Journal of Accounting Research, 2, 72-78. [21] Gross, A. and Roberts, S. (2011) The Impact of Corporate Social Responsibility on the Cost of Bank Loans. Journal of Banking and Finance, 35, 1794-1810.
http://dx.doi.org/10.1016/j.jbankfin.2010.12.002 [22] Huang, Y.-X. and Li, Y.-H. (2012) The Influence of Social Responsibility Information and Financial Performance on Bank Loan Decision-Making—Based on the Perspective of Bank Loan Financing Costs. Friends of Accounting, 21, 29-32.
[1] Ingram, R.W. (1978) An Investigation of the Information Content of Social Responsibility Disclosures. Journal of Accounting Research, 16, 270-285.
http://dx.doi.org/10.2307/2490567 [2] Margolis, J. and Walsh, J. (2003) Misery Loves Companies: Rethinking Social Initiatives by Business. Administrative Science Quarterly, 48, 268-305.
http://dx.doi.org/10.2307/3556659 [3] McWilliams, A., Siegel, D.S. and Wright, P.M. (2006) Corporate Social Responsibility: Strategic Implications. Journal of Management Studies, 43, 1-18.
http://dx.doi.org/10.1111/j.1467-6486.2006.00580.x [4] Waddock, S. and Graves, S. (1997) The Corporate Social Performance—Financial performance Link. Strategic Management Journal, 18, 303-319.
http://dx.doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G [5] Hillman, A. and Keim, G. (2001) Shareholder Value, Stakeholder Management, and Social Issues: What’s the Bottom Line? Strategic Management Journal, 22,125-139.
http://dx.doi.org/10.1002/1097-0266(200101)22:2<125::AID-SMJ150>3.0.CO;2-H [6] Verschoor, C. and Murphy, E. (2002) The Financial Performance of Large US Firms and Those with Global Prominence: How Do the Best Corporate Citizens Rate? Business and Society Review, 107, 371-380.
http://dx.doi.org/10.1111/1467-8594.00141 [7] Hull, C.E. and Rothenberg, S. (2008) Firm Performance: The Interactions of Corporate Social Performance with Innovation and Industry Differentiation. Strategic Management Journal, 29, 781-789.
http://dx.doi.org/10.1002/smj.675 [8] Anderson, J. and Frankle, A. (1980) Voluntary Social Reporting: An Iso-Beta Portfolio Analysis. The Accounting Review, 7, 467-479. [9] Hill, R.P., Ainscough, T., Shank, T. and Manullang, D. (2007) Corporate Social Responsibility and Socially Responsible Investing: A Global Perspective. Journal of Business Ethics, 70, 165-174.
http://dx.doi.org/10.1007/s10551-006-9103-8 [10] Cheung, Y.L., Tan, W., Ahn, H.J. and Zhang, Z. (2010) Does Corporate Social Responsibility Matter in Asian Emerging Markets? Journal of Business Ethics, 92, 401-413.
http://dx.doi.org/10.1007/s10551-009-0164-3 [11] Cheung, Y., Jiang, K. and Tan, W. (2012) “Doing-Good” and “Doing-Well” in Chinese Publicly Listed Firms. China Economic Review, 23, 776-785.
http://dx.doi.org/10.1016/j.chieco.2012.03.013 [12] Chen, Y.-Q. and Ma, L.-L. (2005) Empirical Analysis on Market Reaction of the Corporate Social Responsibility Information. Journal of Accounting Research, 11, 76-81. [13] Wen, S.-B. and Fang, W. (2008) The Empirical Study on Relationship between Corporate Social Responsibility and Financial Performance—Panel Data Analysis of Stakeholder Perspective. Chinese Industrial Economy, 10, 150-160. [14] Li, Z. (2006) Empirical Research on Correlation between Corporate Social Responsibility and Corporate Value—From Shanghai Stock Market Listed Companies. Chinese Industrial Economy, 2, 77-83. [15] Song, X.-Z. and Gong, M.-X. (2007) The Quality and Decision Value Evaluation of the Social Responsibility— Analysis of the Accounting Reports of Listed Companies. Journal of Accounting Research, 2, 37-43. [16] Shen, H.-T. and Yang, Y. (2008) Research on Correlation between Corporate Social Responsibility and Corporate Value—The Empirical Evidence from Chinese Listed Companies. Contemporary Finance & Economics, 3, 150-160. [17] Zhu, S. (2011) Corporate Social Responsibility, Market Assessment and the Earnings Information Content. Journal of Accounting Research, 11, 27-34. [18] Jiang, Y.-J., Xu, Y., Liu, D.-G. and Zhou, M.-H. (2011) Market Effect on Corporate Social Responsibility Information—Based on the Event Study of Disclosure of Chinese Listed Companies’ Social Responsibility Report. Research on Economics and Management, 8, 123-128. [19] Zhai, H.-Y. (2012) Research on the Influence of the Quality of Corporate Social Responsibility Disclosed on Investors Trade Behavior—Based on the Empirical Analysis of Listed Companies in China. Economic Survey, 1, 82-86. [20] Shen, H.-T. and Feng, J. (2012) Public Opinion, Government Regulation and Corporate Environmental Information Disclosure. Journal of Accounting Research, 2, 72-78. [21] Gross, A. and Roberts, S. (2011) The Impact of Corporate Social Responsibility on the Cost of Bank Loans. Journal of Banking and Finance, 35, 1794-1810.
http://dx.doi.org/10.1016/j.jbankfin.2010.12.002 [22] Huang, Y.-X. and Li, Y.-H. (2012) The Influence of Social Responsibility Information and Financial Performance on Bank Loan Decision-Making—Based on the Perspective of Bank Loan Financing Costs. Friends of Accounting, 21, 29-32.