Capital markets' reactions to social information announcements
AbstractThis paper aims to investigate whether the London Stock Exchange (LSE) reacts to social information announcements by new entrants to LSE over a period of five years. Out of a total of 249 non-financial companies that joined LSE, only 66 social information items were announced by 40 companies. For each individual information item, the corresponding company's share price movements are observed and compared with the market benchmark. Having measured abnormal returns for all the price movements, it transpires that on the day of announcement 71% of the reported social information items corresponded with positive abnormal returns. Even though our findings illustrate an overall positive market response to the announcement of social information, the observation of some negative reactions indicates that the release of social information by companies may not always meet its intended target and enhance corporate reputation as perceived by investors.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Accounting and Finance.
Volume (Year): 1 (2008)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID=231
market reaction; social information announcements; abnormal returns; London Stock Exchange.;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Georgeta VINTILA, 2013. "A Study of the Relationship between Corporate Social Responsibility - Financial Performance - Firm Size," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 61(1), pages 62-67, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.