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CSR and Company's Stock Price. A Comparative Evidence from Bucharest Stock Exchange

Author

Listed:
  • Adina Dornean

    (“Al. I. Cuza” University)

  • Dumitru Cristian Oanea

    (The Bucharest University of Economic Studies)

Abstract

This paper aims at analysing the relationship between Corporate Social Responsibility (CSR) and stock price for the companies listed on Bucharest Stock Exchange (BSE) in 2015, comparing with the results obtained for 2014. This study investigates the differences in the market stock price (and other market variables, such as dividends and stock return) of companies that show CSR compared with those that do not. For this purpose we will use three statistical techniques: discriminant analysis, probit analysis model and logistic regression. There is no significant difference between the prediction ability of the models, in the context in which probit model and logistic regression have and average correct classification of 70.29%, while discriminant analysis records 71.62%. Our analysis highlighted that stock return has a significant impact on CSR activities of a company. Moreover, all discriminants have a positive impact on CSR.

Suggested Citation

  • Adina Dornean & Dumitru Cristian Oanea, 2017. "CSR and Company's Stock Price. A Comparative Evidence from Bucharest Stock Exchange," EuroEconomica, Danubius University of Galati, issue 1(36), pages 175-184, May.
    • Handle: RePEc:dug:journl:y:2017:i:1:p:175-184
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    File URL: http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/4143/4014
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    References listed on IDEAS

    as
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    4. Kun Tracy Wang & Dejia Li, 2016. "Market Reactions to the First-Time Disclosure of Corporate Social Responsibility Reports: Evidence from China," Journal of Business Ethics, Springer, vol. 138(4), pages 661-682, November.
    5. Michael L. Barnett & Robert M. Salomon, 2012. "Does it pay to be really good? addressing the shape of the relationship between social and financial performance," Strategic Management Journal, Wiley Blackwell, vol. 33(11), pages 1304-1320, November.
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    Cited by:

    1. Simone Pizzi, 2018. "The Relationship between Non-financial Reporting, Environmental Strategies and Financial Performance. Empirical Evidence from Milano Stock Exchange," Administrative Sciences, MDPI, vol. 8(4), pages 1-9, November.
    2. Oladipupo Festus Olaoye & Oladimeji Emmanuel Oluwadare, 2018. "Corporate Social Responsibility and Stock Price Market of Selected Listed Companies in Nigeria," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(7), pages 872-886, July.

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