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What corporate social responsibility reporting adds to financial return?

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  • Jean-Marie Cardebat

    (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - UB - Université de Bordeaux)

  • Nicolas Sirven

    (CAM - University of Cambridge [UK])

Abstract

Using a Capital Asset Pricing Model (CAPM) for panel data, this study investigates the influence of corporate social responsibility (CSR) on financial performance, for 154 European firms between 2000 and 2008. The CSR index reveals whether or not the firm published a social report for year t. Statistical evidence shows that this index is negatively and significantly associated with the expected return on the capital asset, even after (i) controlling for size, sector and country specific effect or PER, and (ii) correcting for size-CSR multicolinearity bias.

Suggested Citation

  • Jean-Marie Cardebat & Nicolas Sirven, 2010. "What corporate social responsibility reporting adds to financial return?," Post-Print hal-03457835, HAL.
    • Handle: RePEc:hal:journl:hal-03457835
    DOI: 10.5897/JEIF.9000125
    Note: View the original document on HAL open archive server: https://hal.science/hal-03457835
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    References listed on IDEAS

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    Cited by:

    1. Kuo-Jung Lee, 2019. "The effects of social responsibility on company value: a real options perspective of Taiwan companies," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 3835-3852, January.
    2. Massimiliano Cerciello & Francesco Busato & Simone Taddeo, 2023. "The effect of sustainable business practices on profitability. Accounting for strategic disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 802-819, March.
    3. Ismail O. Fasanya & Adegbemi B.O.Onakoya, 2013. "Does Corporate Social Responsibility Improve Financial Performance of Nigerian Firms? Empirical Evidence from Triangulation Analysis," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(3), pages 22-36, June.
    4. Ahlem NAJAH & Anis JARBOUI, 2013. "Extra-Financial Disclosure And The Cost Of Debt Of Big French Companies," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 3(4), pages 57-69, December.

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