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1 – 1 of 1Shou-Lin Yang, Yung-Ming Shiu and Tsung-Chi Liu
The purpose of this paper is to re-examine the statement of Peloza (2006) that enterprise corporate social responsibility (CSR) investment provides a protection efficacy similar…
Abstract
Purpose
The purpose of this paper is to re-examine the statement of Peloza (2006) that enterprise corporate social responsibility (CSR) investment provides a protection efficacy similar to insurance.
Design/methodology/approach
This study uses the event study method and data from the 2008-2010 China listed company social responsibility report and the Taiwan Economic Journal.
Findings
The authors find that the insurance-like effect of CSR investment also exists in China. Both short- and long-term CSR investments of Chinese companies provide this efficacy to corporate stock prices. The authors also find diminishing marginal insurance-like effects in China market.
Originality/value
The CSR investment of firms in China can reduce company stock-price loss when negative events occur. The authors therefore obtain a better understanding of the value of enterprise CSR investment.
Details