IDEAS home Printed from https://ideas.repec.org/a/eee/beexfi/v40y2023ics2214635023000680.html
   My bibliography  Save this article

Socially responsible local firms and stock market participation: Evidence from the U.S. household survey

Author

Listed:
  • Tsang, Albert
  • Yu, Li

Abstract

In this study, we examine the relation between local firms’ corporate social responsibility (CSR) engagement and households’ stock market participation. Using data from U.S. household surveys, we find that households are more likely to participate in the stock market and hold a larger proportion of their portfolios in stocks when the average level of CSR performance of local firms is high. Results from further analyses show that the positive relation between local firms’ average CSR engagement and households’ stock market participation is stronger for households (1) in states in which firms’ CSR engagement tend to receive greater media and more positive exposure; and (2) with a more educated, younger and wealthier head. Overall, our findings suggest that local firms’ CSR performance plays an important role in enhancing investors’ confidence in firms’ ethical practices and financial return from their equity investment, thereby influencing their willingness to participate in the stock market.

Suggested Citation

  • Tsang, Albert & Yu, Li, 2023. "Socially responsible local firms and stock market participation: Evidence from the U.S. household survey," Journal of Behavioral and Experimental Finance, Elsevier, vol. 40(C).
    • Handle: RePEc:eee:beexfi:v:40:y:2023:i:c:s2214635023000680
    DOI: 10.1016/j.jbef.2023.100854
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2214635023000680
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jbef.2023.100854?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:beexfi:v:40:y:2023:i:c:s2214635023000680. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-behavioral-and-experimental-finance .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.