The Disclosure of Corporate Social Responsibility and Stock Liquidity

• Main Authors: Wang, Yu-Hsiang, 王昱翔
• Other Authors: Chen, Jia-Wei
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/12235010306119007947

碩士 === 東海大學 === 財務金融學系 === 103 === Recently, the corporate social responsibility (CSR) plays an important role in the industry, government and academia. It is not only useful in corporate image, but also an important factor in firm value and the value of brands. This paper examines whether the investors prefer the firm which has higher corporate social responsibility in the basis of Stakeholder Theory and Efficient Market Theory. More specifically, to measure corporate social responsibility, I quantify the score of “Corporate Citizenship Awards TOP50” in the CommonWealth Magazine, and choose liquidity measures, including the bid-ask spread, stock trading volume, and adjusted Amihud liquidity ratio to capture investors' behavior. The results suggest that disclosure of the information about CSR has an effect on the liquidity. However the relation between the change of the awards ranking and the liquidity is insignificant. On the other hand, firms awarded, compared with firms not awarded, seem to have more preference from investors. Overall I find that the CSR may not be a burden, but may improve the corporate image and consequently attract more investors to trade firms with high CSR.