Market Reaction to Corporate Social Responsibility Announcements: Evidence from China

Liang Zhang; Tie-nan Wang; Hung Gay Fung

Market Reaction to Corporate Social Responsibility Announcements: Evidence from China

Liang Zhang, Tie-nan Wang, Hung Gay Fung

University of Missouri-St. Louis

Research output: Contribution to journal › Article › peer-review

Abstract

This study uses an event study methodology to examine how the Chinese market reacts to announcements of involvement in corporate social responsibility (CSR) by Southern Weekend (a Chinese newspaper) for Chinese firms from 2008 to 2012. Our results show significant and positive market reactions, supporting the instrumental stakeholder theory. We attribute the positive market response to social capital development and real growth options related to the CSR involvement by the Chinese firms.

Original language	American English
Journal	China & World Economy
Volume	22
State	Published - Mar 12 2014

Disciplines

Business

Cite this

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title = "Market Reaction to Corporate Social Responsibility Announcements: Evidence from China",

abstract = " This study uses an event study methodology to examine how the Chinese market reacts to announcements of involvement in corporate social responsibility (CSR) by Southern Weekend (a Chinese newspaper) for Chinese firms from 2008 to 2012. Our results show significant and positive market reactions, supporting the instrumental stakeholder theory. We attribute the positive market response to social capital development and real growth options related to the CSR involvement by the Chinese firms. ",

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AU - Fung, Hung Gay

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AB - This study uses an event study methodology to examine how the Chinese market reacts to announcements of involvement in corporate social responsibility (CSR) by Southern Weekend (a Chinese newspaper) for Chinese firms from 2008 to 2012. Our results show significant and positive market reactions, supporting the instrumental stakeholder theory. We attribute the positive market response to social capital development and real growth options related to the CSR involvement by the Chinese firms.

UR - https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1749-124X.2014.12063.x

M3 - Article

VL - 22

JO - China & World Economy

JF - China & World Economy

ER -

Market Reaction to Corporate Social Responsibility Announcements: Evidence from China

Abstract

Disciplines

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