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Do all CSR news affect market value equally?

Andrea Pérez (Department of Business Administration, University of Cantabria, Santander, Spain)
Carlos López-Gutiérrez (Department of Business Administration, University of Cantabria, Santander, Spain)
María del Mar García de los Salmones (Department of Business Administration, University of Cantabria, Santander, Spain)

Social Responsibility Journal

ISSN: 1747-1117

Article publication date: 30 August 2019

Issue publication date: 20 October 2020

Abstract

Purpose

The purpose of this study explores the effects that media coverage of corporate social responsibility (CSR) news related to primary stakeholders (e.g. customers, employees and investors) and secondary stakeholders (e.g. community) have on the market value of companies, measured as the impact generated in the positive and negative abnormal returns for those companies.

Design/methodology/approach

Using a sample of 195 online papers published in the most important Spanish business newspaper during 2015, the authors implement an event study and a regression analysis that confirm the importance of CSR news for corporate financial goals.

Findings

The findings show that negative CSR news related to primary stakeholders such as investors and customers generate significant abnormal returns for companies that are notably larger than the abnormal returns generated by secondary stakeholders (e.g. community). Similarly, positive news related to primary stakeholders such as employees are the only positive news that affect market reactions significantly.

Originality/value

The study provides an empirical analysis that clarifies how media coverage of different types of CSR news affect the market value of companies. In doing so, the paper contributes to previous literature significantly because scant research exists that has compared the differential effects of CSR news focused on primary and secondary stakeholders. The findings are discussed under the premises of the managerial perspective of stakeholder theory.

Keywords

Citation

Pérez, A., López-Gutiérrez, C. and García de los Salmones, M.d.M. (2020), "Do all CSR news affect market value equally?", Social Responsibility Journal, Vol. 16 No. 8, pp. 1107-1123. https://doi.org/10.1108/SRJ-03-2019-0116

Publisher

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Emerald Publishing Limited

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