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Human rights and multinational firm returns

Author

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  • Dag, Nihat
  • Eije, Henk von
  • Pennink, Bartjan

    (Groningen University)

Abstract

Corporate social responsibility receives increased attention in economic analysis and research, but the knowledge of the effect of ethical issues on company performance is still in its infancy. In this paper we attempt to measure the impact of the human rights issue with an event study. In particular the consequences of press releases of Amnesty International on the returns of multinational firms operating in Indonesia were analyzed. It proved that press releases did not influence the stock returns of these multinational companies significantly. We then discuss potential reasons for the absence of significant findings.

Suggested Citation

  • Dag, Nihat & Eije, Henk von & Pennink, Bartjan, 1998. "Human rights and multinational firm returns," Research Report 98A33, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    • Handle: RePEc:gro:rugsom:98a33
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    File URL: http://irs.ub.rug.nl/ppn/172971535
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    3. Hausman, Daniel M & McPherson, Michael S, 1993. "Taking Ethics Seriously: Economics and Contemporary Moral Philosophy," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 671-731, June.
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