Corporate social responsibility and stock price crash risk: Evidence from Taiwan

• Main Authors: PO-LIANG LIU, 劉柏良
• Other Authors: 李丹
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/c9z552

碩士 === 國立中央大學 === 財務金融學系 === 107 === Corporate Social Responsibility(CSR) was first advocated by Western countries, so they have a long history of development. However, with the innovation of business environment and management concepts, more and more Asian and emerging market companies regard CSR as a responsibility they should assume. Many companies have also established CSR committees to compile CSR reports. At the same time, there are growing numbers of research on CSR in the academic community in Asia. But it may be due to the late start, the empirical results of CSR implementation in Asia and emerging markets are often inconsistent with developed countries., which show the negative effect of implementation in CSR. Current literature focuses mainly on the correlation between the company's financial performance and corporate social responsibility performance, thus less research pays attention to the risks and corporate social responsibility performance, especially for emerging and Asian regions. In addition, the literature on the CSR evaluation criteria in Taiwan is little and most of them use dichotomous variables, divided into whether or not there is an award for each magazine, so there is no quantitative standard to measure the CSR effect. This study intends to make up for the shortcomings of the existing literature and price collapse in the Taiwan market. Thus I set my main research issue as the crash risk, and the CSR performance of each company is quantified by the scores given by Thomson Reuters and Commonwealth Magazine from 2010 to 2016. The sample contains about 100 Taiwan listed cabinet companies. I also replace the ABACC (absolute accrual basis accounting) as the AQ (accrual quality) to better measure the earning manipulation of managers. The empirical results of this study show that the effectiveness of Taiwanese companies in promoting CSR is different from that of previous studies on China and the Japanese market. It shows that Taiwanese companies can significantly reduce crash risk after improving their CSR performance. Moreover, the effect of reducing the collapse is even more pronounced in companies with poor corporate governance. The empirical results are broadly in line with the results of the US and Western newly industrialized countries, indicating that the result of CSR in Taiwan is closer to US and Western countries.