Investor Tastes, Corporate Behavior, and Stock Returns: An Analysis of Corporate Social Responsibility

• 成果类型: Article
• 署名作者: Hwang, Chuan Yang; Titman, Sheridan; Wang, Ying
• 署名单位: National Taiwan University; Nanyang Technological University; University of Texas System; University of Texas Austin; Central University of Finance & Economics
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2021.4179
• 发表日期: 2022
• 页码: 7131-7152
• 关键词: corporate social responsibility; INSTITUTIONAL OWNERSHIP; shareholders activism

摘要

We classify institutions into socially responsible investors (SRI) and not socially responsible investors using the value weighted corporate social responsibility (CSR) scores of their portfolio holdings. We find that firms that exhibit increases in SRI ownership tend to increase future CSR scores. Our analysis of stock price responses to the revelation of SRI ownership changes indicates that the revelation of higher SRI ownership is associated with negative stock returns. These effects are particularly strong when we focus on SRI-activists, who tend to target firms with low CSR scores and lobby to increase them over time. These observations are consistent with the hypothesis that anticipated increases in CSR activities reduce firm values.