Corporate social responsibility and information flow
Document Type
Article
Publication Date
6-1-2021
Abstract
We find that a firm’s greater commitment to corporate social responsibility (CSR) increases firm-specific information incorporated into stock prices. We further show that information searches increase around major disclosure events for firms that are more socially responsible, as observed through requests for newly released annual (10-K) filings on EDGAR and company ticker searches on Google around earnings announcements. Using alternative empirical specifications, we establish a robust and positive relation between CSR and stock price informativeness. Our results are consistent with the ethical and reputational view that a commitment to CSR encourages information acquisition and facilitates information flow into stock prices.
Publication Title
Accounting and Finance
Volume Number
61
Issue Number
2
First Page
2759
Last Page
2807
ISSN
08105391
Recommended Citation
Chen, Gary; Wang, Bin; and Wang, Xiaohong, "Corporate social responsibility and information flow" (2021). Accounting, Business Law, and Finance Faculty Publications. 26.
https://neiudc.neiu.edu/abf-pub/26