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Corporate Social Responsibility and Stock Prices After the Financial Crisis: The Role of Strategic CSR Activities

Author

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  • Aneta Havlinova

    (Faculty of Social Sciences, Institute of Economic Studies)

  • Jiri Kukacka

    (Faculty of Social Sciences, Institute of Economic Studies
    Institute of Information Theory and Automation)

Abstract

We analyze the relationship between corporate social responsibility and the stock market performance in the post-global financial crisis period. A new measure of social responsibility by Thomson Reuters, called the ESG Combined Score, is used. As a novel feature of our analysis, socially responsible engagement is divided into the strategic activities closely related to the examined companies’ core business and the remaining secondary activities. The results of the fixed effects regression show a positive and statistically, as well as economically, significant impact of the strategic activities on the corporate stock market performance of companies. This impact is up to 103% higher compared to the secondary activities. The empirical results suggest that if companies aim to increase their share prices via the corporate social responsibility channel, they should strategically select their socially responsible initiatives.

Suggested Citation

  • Aneta Havlinova & Jiri Kukacka, 2023. "Corporate Social Responsibility and Stock Prices After the Financial Crisis: The Role of Strategic CSR Activities," Journal of Business Ethics, Springer, vol. 182(1), pages 223-242, January.
    • Handle: RePEc:kap:jbuset:v:182:y:2023:i:1:d:10.1007_s10551-021-04935-9
    DOI: 10.1007/s10551-021-04935-9
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    3. Nazari, Jamal A. & Poursoleyman, Ehsan, 2024. "Analysts’ recommendations on peer-relative comparable sustainability disclosure," Finance Research Letters, Elsevier, vol. 64(C).
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    6. Huang, Jun & Li, Yun & Han, Feifei, 2024. "Walk well and talk well: Impact of the consistency of ESG performance and disclosure on firms’ stock price crash risk," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 1154-1174.

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